ACCT1021 Study Guide - Quiz Guide: Market Price, Deferred Income, Reserve Requirement

69 views3 pages

viridiancamel50

16 Oct 2017

School

Department

Course

Professor

For unlimited access to Study Guides, a Grade+ subscription is required.

Document Summary

Current assets / current liabilities measure of the ability to pay. Liquid assets/ current liabilities (liquid = cash, short term investment, and ar) debts short term. Receivable turnover credit sales / average ar balance measures ability to actually receive receivables in a timely manner. Inventory turnover cost of goods sold/ avg inventory measure of inventory. Measure of length of time inventory is on hand. Gross income after cost of sales produced per dollar of sales. Measures quality of the accrual basis net income. Measure of how assets are used to produce sales. Overall measure of earning power or profitability of all assets employed in the business. Earnings per share net income/ outstanding shares means of placing earnings on a common basis for comparison. Net income before taxes and interest / interest expense. Cash coverage ratio cash flow from operating before interest and taxes/ interest paid. Price/earning or p/e market price per share/ eps.

Related Questions

1. The formula for Accounts Receivable turnover is

Select one:

a. Net Sales / average accounts receivable

b. Cost of goods sold / average accounts receivable

c. Net Sales / average merchandise inventory

d. 360 days / average accounts receivable

2. The category of ratios that determine the economic status ofpublicly-traded companies is

Select one:

a. Profitability ratios

b. Market value ratios

c. Liquidity Ratios

d. Solvency ratios

3. The working capital ratio is

Select one:

a. Quick assets / current liabilities

b. Working capital /current liabilities

c. Current assets minus current liabilities

d. Current assets/current liabilities

4. Earnings per share is calculated by

Select one:

a. Dividing net income by the authorized ordinary shares.

b. Dividing net income less preferred dividends by number ofordinary shares outstanding.

c. None of the above.

d. Dividing net income by the total number of ordinary andpreferred shares issued.

5. Which of the following belong to the profitabilityratios?

Select one:

a. Rate of return on equity

b. Rate of return on assets

c. All of the above

d. Gross Profit Margin

6. The category of ratios that shows the ability of the firm topay its long-term obligations is

Select one:

a. Profitability ratios

b. Solvency ratios

c. Market value ratios

d. Liquidity Ratios

7. Operating profit margin equals

Select one:

a. Income from operations / sales

b. Net income / sales

c. Gross profit / sales

d. Profit from operations / cost of sales

8. The following are quick assets except

Select one:

a. Short-term investments

b. Merchandise Inventory

c. Accounts Receivable

d. Cash

9. The following are liquidity ratios except

Select one:

a. Earnings per share

b. Working capital ratio

c. Quick ratio

d. Receivable turnover

10. Quick assets equals

Select one:

a. All current assets

b. Cash and Accounts receivable only.

c. Total assets less non-current assets

d. Current assets minus inventory

jadebear393

FINANCIAL STATEMENT

CURRENT YEAR PRECEDING YEAR

BALANCE SHEET

CASH $15,000. $20,000.

SHORT-TERM INVESTMENTS 11,000. 27,000.

NET ACCOUNTS RECEIVABLE 54,000. 73,000.

MERCHANDISE INVENTORY 77,000. 69,000.

PREPAID EXPENSES 15,000. 9,000.

TOTAL CURRENT ASSETS 172,000. 198,000.

TOTAL CURRENT LIABILITIES 133,000. 93,000.

INCOME STATEMENT

NET CREDIT SALES $462,000.

COGS 315,000.

1. Compute the ratios for the current year a. Currentratio b. Cash ratio c. Acid-test ratio d. Investment turnover e.Days sales in inventory (84 days) f. Days sales in receivables g.Gross profit percentage.

harlequinreindeer258

Liquidity ratios indicate a company's short-term debt-paying ability. These ratios include: (Select all that apply). Each incorrect answer results in a negative point mark.

Select one or more:

a. Acid-test (quick) ratio.

b. Inventory turnover.

c. Accounts receivable turnover.

d. Cash flow liquidity ratio.

e. Total assets turnover.

f. Stock Value to Sales ratio.

g. Equity ratio.

h. Number of days' sales in accounts receivable.

i. Current, or working capital, ratio.

Question 2

Not yet answered

Marked out of 10.00

Flag question

Question text

Profitability tests are an important measure of a company's operating success. These tests include(Mark all that apply). Each incorrect answer results in a negative point mark.

Select one or more:

a. Acid-test (quick) ratio.

b. Times interest earned ratio.

c. Cash flow margin.

d. Times preferred dividends earned ratio.

e. Net income to net sales.

f. Inventory turnover.

g. Return to average common stockholders' equity.

h. Earnings per share of common stock.

i. Rate of return on operating assets.

Question 3

Not yet answered

Marked out of 10.00

Flag question

Question text

Market tests help investors and potential investors assess the relative merits of the various stocks in the marketplace. These tests include: (Mark all that apply). Each incorrect answer results in a negative point mark.

Select one or more:

a. Acid-test (quick) ratio.

b. Inventory turnover.

c. Dividend yield on preferred stock.

d. Dividend yield on common stock.

e. Earnings yield on common stock.

f. Cash flow per share of common stock.

g. Payout ratio on common stock.

h. Price-earnings ratio.

orchidjellyfish198

ACCT1021 Study Guide - Quiz Guide: Market Price, Deferred Income, Reserve Requirement

Document Summary

Get access

Related Documents

ACCT1021 Study Guide - Final Guide: Savings Account, Authorised Capital, Cash Flow Statement

ACCT1021 Lecture 25: Chapter Thirteen Lecture Notes (25&26)

ACCT1021 Chapter Notes - Chapter 2: Accounts Payable, Current Liability, Deferral

Related Questions