ACC 206 Week 10 Quiz – Strayer


Click on the Link Below to Purchase A+ Graded Course Material

http://budapp.net/ACC-206-Accounting-Principles-II-Week-10-Quiz-Strayer-268.htm

Quiz 8 Chapter18


FINANCIALSTATEMENTANALYSIS


CHAPTERSTUDYOBJECTIVES


1.Discusstheneedforcomparativeanalysis.

2.Identifythetoolsoffinancialstatementanalysis.

3.Explainandapplyhorizontal(trend)analysis.

4.Describeandapplyverticalanalysis.

5.Identifyandcomputeratiosusedinanalyzingafirm'sliquidity,profitability,andsolvency.

6.Understandtheconceptofearningpower,andindicatehowirregularitemsarepresented.

7.Understandtheconceptofqualityofearnings.


TRUE-FALSESTATEMENTS

1.     Intracompanycomparisonsofthesamefinancialstatementitemscanoftendetect changes infinancialrelationships andsignificanttrends.

2.     Calculatingfinancialratiosisafinancialreportingrequirementundergenerallyaccepted accountingprinciples.

3.     Measuresofacompany'sliquidityareconcernedwiththefrequencyandamountsof dividend payments.

4.     Analysisof financialstatementsis enhancedwith theuseof comparativedata.

5.     Comparisonsofcompanydatawithindustryaveragescanprovidesomeinsightintothe company's relativepositionintheindustry.

6.     Verticalandhorizontalanalysesareconcernedwiththeformatusedtopreparefinancial statements.

7.     Horizontal,vertical,andcircularanalysesarethemostcommontoolsoffinancial statementanalysis.

8.     Horizontalanalysisisatechniqueforevaluatingafinancialstatementiteminthecurrent yearwith otheritemsinthecurrentyear.

9.     Anothernamefortrendanalysisishorizontalanalysis.

10.     Ifacompanyhassalesof$110in2008and$154in2009,thepercentageincreasein sales from2008to2009is140%.

11.     Inhorizontalanalysis,ifanitemhasanegativeamountinthebaseyear,andapositive amount inthefollowingyear,nopercentagechangeforthatitemcanbecomputed.

12.     Commonsizeanalysisexpresseseachitemwithinafinancialstatementintermsofa percent of a baseamount.

13.     Verticalanalysisisa moresophisticatedanalyticaltoolthanhorizontal analysis.

14.     Verticalanalysisisusefulinmakingcomparisonsofcompaniesofdifferentsizes.

15.     Meaningfulanalysisoffinancialstatementswillincludeeitherhorizontalorvertical analysis,butnotboth.

16.     Usingvertical analysisoftheincomestatement,acompany'snetincome asapercentage ofnetsalesis10%;therefore,thecostofgoodssoldasapercentageofsalesmustbe 90%.

17.     Intheverticalanalysisoftheincomestatement,eachitemisgenerallystatedasa percentage of net income.

18.     A ratiocanbeexpressedasapercentage,arate,oraproportion.

19.     Asolvencyratiomeasurestheincomeoroperatingsuccessofanenterpriseforagiven period of time.

20.     Thecurrentratiois ameasure of alltheratioscalculatedforthe currentyear.

21.     Inventoryturnovermeasuresthenumberoftimesontheaveragetheinventorywassold during theperiod.

22.     Profitabilityratiosarefrequentlyusedasabasisforevaluatingmanagement'soperating effectiveness.

23.     Therateofreturnontotalassetswillbegreaterthantherateofreturnoncommon stockholders' equity ifthe companyhas beensuccessful intrading ontheequityat again.

24.     Fromacreditor's pointofview,thehigherthetotaldebttototalassetsratio,thelowerthe risk that thecompanymaybeunableto payits obligations.

25.     Acurrentratioof1.2to1indicatesthatacompany'scurrentassetsexceeditscurrent liabilities.

26.     Usingborrowedmoneytoincreasetherateofreturnoncommonstockholders'equityis called "tradingontheequity."

27.     Whenthedisposalofasignificantsegmentoccurs,theincomestatementshouldreport both incomefromcontinuingoperationsandincome(loss)fromdiscontinuedoperations.

28.     Aneventortransactionshouldbeclassifiedasanextraordinaryitemifitisunusualin nature orifit occurs infrequently.

29.     Variationsamongcompaniesintheapplicationofgenerallyacceptedaccounting principles mayreducequalityofearnings.

30.     Proformaincomeusuallyexcludesitemsthatthecompanythinksareunusualor nonrecurring.



Additional True-FalseQuestions

31.     Thethreebasictoolsofanalysisarehorizontalanalysis,verticalanalysis,andratio analysis.

32.     A percentagechangecan becomputedonlyif thebaseamountiszeroorpositive.

33.     Inverticalanalysis, the baseamountinanincomestatementisusuallynetsales.

34.     Profitabilityratiosmeasuretheabilityoftheenterprisetosurviveoveralongperiodof time.

35.     Thedaysin inventoryiscomputedbymultiplyinginventoryturnoverby365.

36.     Extraordinaryitemsarereportednetofapplicabletaxesinaseparatesectionofthe income statement.



MULTIPLECHOICEQUESTIONS


37.     Whichoneof thefollowingisprimarilyinterestedintheliquidityof acompany? a.Federalgovernment
b.Stockholders
c.Long-termcreditors d.Short-termcreditors

38.     Whichoneof thefollowing isnot a characteristic generallyevaluatedin analyzingfinancial statements?
a.Liquidity
b.Profitabilityc.Marketability d.Solvency

39.     Inanalyzingthefinancialstatementsofacompany,asingleitemonthefinancial statements
a.shouldbereported inbold-facetype.
b.ismoremeaningfulif comparedtootherfinancialinformation. c.is significantonlyifit is large.
d.shouldbeaccompaniedbyafootnote.

40.     Short-termcreditorsareusuallymostinterestedinevaluating a.solvency.
b.liquidity.
c.marketability. d.profitability.

41.     Long-termcreditorsareusuallymostinterestedinevaluating a.liquidityandsolvency.
b.solvencyandmarketability. c.liquidityandprofitability.
d.profitabilityandsolvency.

42.     Stockholdersaremostinterestedinevaluating a.liquidityandsolvency.
b.profitabilityandsolvency. c.liquidityandprofitability.
d.marketabilityandsolvency.
FinancialStatementAnalysis      18-7

43.     A stockholderis interestedintheabilityof afirmto a.payconsistentdividends.
b.appreciateinshareprice.c.surviveovera longperiod. d.all of these.

44.     Comparisonsoffinancialdatamadewithina companyarecalled a.intracompanycomparisons.
b.interiorcomparisons.
c.intercompanycomparisons. d.intramuralcomparisons.

45.     Atechniqueforevaluatingfinancialstatementsthatexpressestherelationshipamong selected items offinancialstatementdatais
a.commonsizeanalysis. b.horizontalanalysis.
c.ratioanalysis.
d.verticalanalysis.

46.     Whichoneof thefollowingisnotatool infinancialstatementanalysis? a.Horizontalanalysis
b.Circularanalysis c.Verticalanalysis d.Ratioanalysis

47.     Inanalyzingfinancialstatements,horizontalanalysis is a a.requirement.
b.tool.
c.principle. d.theory.

48.     Horizontalanalysisis also called a.linearanalysis.
b.verticalanalysis. c.trendanalysis.
d.commonsizeanalysis.

49.    Verticalanalysisisalsoknownas a.perpendicularanalysis.
b.commonsizeanalysis. c.trendanalysis.
d.straight-lineanalysis.

50.     Inratioanalysis,theratiosareneverexpressedasa a.rate.
b.negativefigure. c.percentage.
d.simpleproportion.
18-8       

51.     Theformulaforhorizontalanalysisofchangessincethebaseperiodisthecurrentyear amount
a.dividedbythebaseyearamount.
b.minusthebaseyearamountdividedbythe base yearamount.c.minusthebase yearamountdividedbythe currentyearamount. d.plusthebaseyearamountdividedbythebase yearamount.

52.     Horizontalanalysisevaluatesaseriesoffinancialstatementdataovera periodof time a.that hasbeenarrangedfromthehighestnumbertothelowestnumber.
b.that hasbeenarrangedfromthelowestnumbertothehighestnumber. c.todeterminewhichitemsareinerror.
d.todeterminetheamountand/orpercentageincreaseordecreasethathastaken place.

53.     Horizontalanalysisevaluatesfinancialstatementdata a.withina periodof time.
b.overa periodof time. c.onacertaindate.
d.as it mayappearinthefuture.

54.     Assumethefollowingsalesdatafor a company:

2010                      $1,000,000 2009                          900,000 2008                          750,000 2007                          600,000

If2007isthebaseyear, whatis thepercentageincreaseinsalesfrom2007to 2009? a.100%
b.150% c.50%d.66.7%


Comments

Post a Comment

Popular posts from this blog

BUS 599 Week 10 Discussion Question – Strayer New

Click On The Link Below To Purchase Instant Download http://www.budapp.net/BUS-599-Week-10-Discussion-Question-Strayer-New-BUS599W10D.htm Week 10 Discussion "I Have a Plan"  Please respond to the following: •           Per the text, planning isn’t just what you do to go into business; it’s what you have to do to stay in business. Speculate on the planning mechanism(s) that you believe would work well for your NAB business if implemented properly. Provide a rationale for your response.
Read more

CIS 341 Week 10 Technical Project Paper – Strayer

Click On The Link Below to Purchase A+ Graded Material Instant Download http://budapp.net/CIS-341-Week-10-Technical-Project-Paper-Strayer-NEW-CIS341TP.htm Technical Project Paper: Information Systems Security Due Week 10 and worth 110 points You are the Information Security Officer for a small pharmacy that has recently been opened in the local shopping mall. The daily operation of a pharmacy is a unique business that requires a combination of both physical and logical access controls to protect medication and funds maintained located on the premises and personally identifiable information and protected health information of your customers. Your supervisor has tasked you with identifying inherent risks associated with this pharmacy and establishing physical and logical access control methods that will mitigate the risks identified. 1) Firewall (1) 4) Desktop computers (4) 2) Windows 2008 Active Directory Domain 5) Dedicated T1 Connection (1) Controllers (DC) (1) 3) F...
Read more

CIS 499 Week 10 Discussion Questions – Strayer NEW

Click On The Link Below to Purchase A+ Graded Material Instant Download http://budapp.net/CIS-499-Week-10-Discussion-Questions-Strayer-NEW-CIS499W10D.htm Week 10 Discussion 1 "Value" Please respond to the following: ·          Assess BCP as a process that adds business value. Give your opinion on whether or not the argument that states BCP adds value is a credible argument. Explain why or why not. ·          Speculate the strategic values that could be realized by having an effective BCP. Provide a rationale for your answer. Week 10 Discussion 2 "Cloud Computing" Please respond to the following: ·          Evaluate the benefits of cloud computing for modern and legacy organizations looking to migrate to the cloud. Support the use of cloud computing as a viable option within an organizational business continuity strategy. ·  ...
Read more