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27 Jan 2019

3. Profit margin and asset turnover can be combined to create

a. return on assets

b return on equity

c. earnings per share

d. price earnings ratio

e. none

4.which of the following increases cash

a. issuance to long term debt

b. acquisition of property plant and equipment

c. payment of divdends

d decrease in short term debt

e. none

11.elsie Jackson is saving for a down payment on a condo. She needs 20,000. How much must she invest in a savings account that pays 5% annually to have the 20,000 in 8years? Round to the nearest dollar.

a. 13,206

b $12,983

c. 13,616

d. 13,537

e. none

13. which of the following increase cash?

a.issuance of long term debt

b. acquisition of property plant and equipment

c. payment of divdends

d. decrease in short term debt

e. none

14. profit margin and asset turnover can be combined to create

a. return on assets

b. return on equity

c. earnings per share

d. price earnings ratio

e. none

17. which of the following ratios is coverage ratio

a. return on assets

b. return on equity

c. earnings per share

d. times interest earned

e. none

24.right-hand entries increase

a. asset accounts

b owners equity accounts

c. liabilities

d. both b and c

e. none

26. a customer pays on an account receivable. The account that should be credited is

a. inventory

b. cash

c. accounts payable

d. accounts receivable

e. none

27. which of the following ratios measures liquidity?

a. current

b. payout

c. gross margin

d. asset turnover

e. none

31.capital stock is a part of which of the following accounts?

a. owners’ equity

b. liabilities

c. current assets

d. long term assets

e. none

37. Agr corporation signed a two-yr lease for the building that the company occupies. The account that should be debited is

a. prepaid expense

b.cash

c. accounts payable

d. building

e. none

38. left-hand entries DECREASE

a. asset accounts

b. liability accounts

c. owner’s equity accounts

d. both b and c*

e.none

which of the following increases cash?

Issuance of long-term debt

Acquition of property plant and equipment

C.paymentof divdends

D. decrease in short term debt

none

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Nestor Rutherford
Nestor RutherfordLv2
27 Jan 2019
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Related questions

1.The concept that an item is not large enough to influence the users of a financial statement is

A, cost effectiveness

b. Materiality

c. reliability

d. relvance

e. none

2. The quality that allows quantitative assessment of the similarities and differences among enterprises is known as

a.comparability

b. consistency

c. reliability

d. relevance

e. none

3. Profit margin and asset turnover can be combined to create

a. return on assets

b return on equity

c. earnings per share

d. price earnings ratio

e. none

4.which of the following increases cash

a. issuance to long term debt

b. acquisition of property plant and equipment

c. payment of divdends

d decrease in short term debt

e. none

5. if a company pays out more than the income tax incurred as shown in the income tax liability decrease, the effect on cash is a

a. decrease

b. increase

c.no effect

d. none of the above

6. which of the following increases cash

a. increase in inventory

b. increase in accounts receivable

c. increase in the accounts payable

d. none

7.Grayson is saving for a used car. He needs $14,000. How much he invest at 3% annual interest rate to have $ 14,000 in two years? Round to the nearest dollar.

a. 12,983

b.12,417

c. 13,720

d. 13.196*

e, none

8.ellen fetter invested $5,000 in a savings account that paid 5% interest compounded annually. She kept the account for three years. At the end of the three years, ellen will have approimentely

a. $6,103

b. $5,444

c.5,414

d.5,788*

e. none

9. Which of the following is a snapshot of the financial position of a company

a. Balance sheet

B.income statement

C. statement of retained earnings

D. cash flow statement

e. none

10.which of the following rations is not useful for comparison purposes?

a. return on assets

b. price earnings ratio

c. return on equity

d. earnings per share

e. none*

11.elsie Jackson is saving for a down payment on a condo. She needs 20,000. How much must she invest in a savings account that pays 5% annually to have the 20,000 in 8years? Round to the nearest dollar.

a. 13,206

b $12,983

c. 13,616

d. 13,537

e. none

12.which of the following is added to net income to calculate cash flow?

a. depreciation

b. increase in accounts receivable

c. increase in inventory

D. decrease in accounts payable

e. none

13. which of the following increase cash?

a.issuance of long term debt

b. acquisition of property plant and equipment

c. payment of divdends

d. decrease in short term debt

e. none

14. profit margin and asset turnover can be combined to create

a. return on assets

b. return on equity

c. earnings per share

d. price earnings ratio

e. none

15.Bart is saving for college. He needs 20,000 for the first year. How much must he invest at a 5% annual interest rate to have 20,000 in five years? Round to the nearest dollar?

a. 14.982

b.15,016

c.15,023

d 15,671

e none

16.which of the following are added to net income to determine cash flow from operating activities?

a. depreciation

b. amortization

c. both a and b*

d. gain on asset sale

e. none

17. which of the following ratios is coverage ratio

a. return on assets

b. return on equity

c. earnings per share

d. times interest earned

e. none

18. ellis industries is a large, multinational company located in the us. Ellis’s financial statements are in us dollars. This GAAP is known as

a. monetary concept

b. economic entity

c.conservatism

d. matching

e. none

19.ginger Ellison invested $10,000 in a bank account at offshore bank. The account pays 3% interest compounded annually. How much will Ginger have in five years? Round to the nearest dollar?

a. 11,593

b. 11,108

c. 10,213

d. 12,619

e. none

20.which ratio is wall street’s favorite

Inventory turnover

B. receivables turnover

Current

D. price- earnings*

E. none

21. ginger Ellison invested $10,000 in a bank account at offshore bank. The account pays 3% interest compounded annually. How much will Ginger have in five years? Round to the nearest dollar?

a. 11,593

b. 11,108

c. 10,213

d. 12,619

e. none

22.information that can make a difference to the decision at hand is considered to be

a. a reliable

b. a comparable

c. relevant

d. understandable

c. none

23. Blackson incorporated signed a 3 year lease for the building that blackson occupies and paid the first 6 months in advance. The account that should be debited is

a. prepaid expenses

b. cash

c. building

d. accounts payable

e. none

24.right-hand entries increase

a. asset accounts

b owners equity accounts

c. liabilities

d. both b and c

e. none

25.The quality that ensures that information is reasonably free from error is

a. reliability

b. relevant

c. understandability

d. consistent

e. none

26. a customer pays on an account receivable. The account that should be credited is

a. inventory

b. cash

c. accounts payable

d. accounts receivable

e. none

27. which of the following ratios measures liquidity?

a. current

b. payout

c. gross margin

d. asset turnover

e. none

28. Jesse Ellis invested $4,000 in a savings account that paid 6% interest compounded annually for 6 years. At the end of 6 years, Jesse will have approximately.

A. 5,103

b. $5,674

c. 5,506

d.4,903

e.none

29. which of the following is not a functional area of accounting?

a. Managerial accounting

b. tax accounting

c.economic accounting*

d. financial accounting

e. none

30.John Vincent invested $10,000 in a savings account. The account pays 4,5% annual interest. John will have much in the account at the end of 10 years? Round to the nearest dollar.

a. 15,530

b. 14,984

c. 16,010

d. 16,311

e none

31.capital stock is a part of which of the following accounts?

a. owners’ equity

b. liabilities

c. current assets

d. long term assets

e. none

32.The stock market values a company based on which of the following accounts?

a. assets

b. liabilities

c. capital stock

d. retained earnings*

e none

33. The following accounts are listed in order of liquidity

a. current assets

b. current liabilities

c. both a and b

d. long term assets

e. none

34. When shares are sold from one shareholder to another in the open market: the following accounts is impacted

a. capital stock

b. retained earnings

c. long term liabilities

d. current assets

e. none*

35. The accounts that reflects the amount the owners have invested in the business is

a. capital stock

b. retained earnings

c. long term liablilties

d. long term assets

d. none

36. Karen Quigley is saving for new car. The car cost $22,000. How much must Karen invest in a savings account that pays 4% annually to have the $22,000 in three years? Round to the nearest dollar.

a. 20,147

b. 19,107

c. 19,558

d.19,328

e. none

37. Agr corporation signed a two-yr lease for the building that the company occupies. The account that should be debited is

a. prepaid expense

b.cash

c. accounts payable

d. building

e. none

38. left-hand entries DECREASE

a. asset accounts

b. liability accounts

c. owner’s equity accounts

d. both b and c*

e.none

39. which of the following is a source of cash? (question 42 different choices)

a. issuance of long-term debt

b. increase in inventories

c. decrease in accounts payable

d. increase in accounts receivable

e. none

REPEAT Different choice 40. which of the following increases cash?

Issuance of long-term debt

Acquition of property plant and equipment

Cpaymentof divdends

D. decrease in short term debt

none

41.The ratio that shows how much in excess of current earnings investors are willing to pay for company stock is.

A payout

b.current

c, price-earnings*

d.return on equity

e none

42. which of the following is a source of cash?

A increase in accounts recievable

b. increase in inventories

c. increase in accounts payable

d. none*

43. A gain on the sale of an asset is subtracted from net income to determine cash flow from operating activities because of

a. double counting

b. asset sales require a basis

c. losses are cash flow neutral *

d. none

44. which of the following is an expense allocation scheme?

a. cost of goods sold

b. amortization

c. Depreciation

D. Band C*

e. none

45.The account that reflects the amount the owners have invested in the business is

a. capital stock

b. retained earnings

c. long term liabilies

d. long term asset

e. none

46. which of the following statements represents a flow concept?

a. balance sheet

b. income statement*

c. statement of retained earnings

d. inventory statement

e. none

47. left- hand entries INCREASE

a. asset accounts

b. liability accounts

c. owners’ equity accounts

D. both B and C

e. none

48.which of the following ratios measures operating performance?

a. price-earnings

b. current

c. receivable turnover*

d. operating cycle

e. none

49. credit sales increase

a. cash

b. land

c. owners’ equity

d. accounts payable

e. none*

50.Projecting inventory levels for next year would be an example of

a. financial accounting

b managerial accounting*

c. tax accounting

d. none

51. investments representing long term holdings of securities would appear on the balance sheet as

a. long term liabilities

b long-term asset

c. capital stock

d. retained earnings

e. none*

52. which organization is recognized today as the authoritative voice of accounting rules and principles?

a. sec

b. aICPA

c.FASB *

d.AAA

e. none

53. which account below would be credited to record this transaction: purchase merchandise for resale on credit

a. inventory

b. cash

c. accounts payable *

d.accounts receivable

e. none

54. Formis, Inc. estimates the useful life of each asset purchased and depreciates the asset over the useful life. This GAAP is known as

a. Monetary concept

b. economic entity

c. going concern

d. matching*

e. none

55. which of the following is one gauge of the company’s ability to meet its short-term obilgations?

a. gross margin

b. asset turnover

c. profit margin

d. working capital*

e. none

Fully explain the kind of information the following financial ratios provide about a firm:
a) Quick ratio b) Cash ratio, c) Total assets turnover, d) Equity multiplier, e) Long-term debt ratio,
f) Times interest earned ratio, g)Profit margin, h) Return on assets, i) Return on equity, j) Price-earnings ratio.









Find the following ratios with the information provided by the balance sheet.

a.??Current ratio

b.??Operating return on assets

c.??Times interest earned

d.??Debt ratio

e.??Inventory turnover

f.??Average collection period

g.??Total asset turnover

h.??Fixed asset turnover

i.??Operating profit marginj

j.??Return on equity

Cash $ 506

Accounts receivable 2,002

Inventories 1,003

Current assets $ 3,511

Net fixed assets 4,521

Total assets $ 8,032

Accounts payable $ 1,101

Accrued expenses 619

Short-term notes payable 284

Current liabilities $ 2,004

Long-term debt 1,981

Owners' equity 4,047

Total liabilities and owners' equity 8,032

Net sales (all credit) $ 7,976

Cost of goods sold -3,284

Gross profit $ 4,692

Operating expenses (includes $509 depreciation) -3,000

Operating income $ 1,692

Interest expense -344

Earnings before taxes $ 1,348

Income taxes (40%) -539

Net income 809

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