FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 17: Financial Statement Analysis

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

Multiple Choice

Review LaterAdd Note

Review Later

Match each definition that follows with the term (a-h) it defines. -Focuses on a company's ability to generate net income

A) Solvency
B) Leverage
C) Times interest earned
D) Horizontal analysis
E) Vertical analysis
F) Common-sized financial statements
G) Current position analysis
H) Profitability analysis

I) C) and G)
J) A) and B)

Correct Answer

verified

Show Answer

Question 52

Multiple Choice

Review LaterAdd Note

Review Later

Corporate annual reports typically do not contain

A) management discussion and analysis
B) an SEC statement expressing an opinion
C) accompanying notes
D) an auditor's report

E) A) and B)
F) A) and C)

Correct Answer

verified

Show Answer

Question 53

True/False

Review LaterAdd Note

The report on internal control required by the Sarbanes-Oxley Act of 2002 may be prepared by either management or the company's auditors.

The following items are reported on a company's balance sheet:​ Determine the (a)current ratio,and (b)quick ratio.Round your answers to one decimal place.

The dividend yield is equal to the dividends per share divided by the par value per share of common stock.

The following data are taken from the financial statements:​

The number of days' sales in inventory is one means of expressing the relationship between the cost of goods sold and inventory.

Use this information for Kellman Company to answer the questions that follow. ​ The balance sheets at the end of each of the first two years of operations indicate the following: ​ -Using the balance sheets for Kellman Company,if net income is $150,000 and interest expense is $20,000 for Year 2,what is the return on total assets for the year?

An unusual item is often related to current operations and occurs infrequently.

Ratios and various other analytical measures are not a substitute for sound judgment,nor do they provide definitive guides for action.

Match each ratio that follows to its use (items a-h) . Items may be used more than once. -Asset turnover ratio

Use this information for Kellman Company to answer the questions that follow. ​ The balance sheets at the end of each of the first two years of operations indicate the following: ​ -Using the balance sheets for Kellman Company,if net income is $250,000 and interest expense is $20,000 for Year 2,and the market price of common shares is $30,what is the price-earnings ratio on common stock for Year 2? (Round intermediate calculation to two decimal places and final answers to one decimal place.)

Percentage analyses,ratios,turnovers,and other measures of financial position and operating results are

Horizontal analysis of comparative financial statements includes

Based on the following data for the current year,what is the number of days' sales in inventory?

Match each ratio that follows to its use (items a-h) . Items may be used more than once. -Working capital

Which of the following ratios provides a solvency measure that shows the margin of safety of bondholders and also gives an indication of the potential ability of the business to borrow additional funds on a long-term basis?

When a corporation discontinues a segment of its operations at a loss,the loss should be reported as a separate item after income from continuing operations on the income statement.

The following information pertains to Newman Company.Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit.​Assets​ Liabilities and Stockholders' Equity Income Statement ​ What is the return on total assets for this company?

The following data are taken from the balance sheet at the end of the current year:​​ Determine the (a)working capital, (b)current ratio,and (c)quick ratio.Round ratios to one decimal place.