Recent Question

The type of analysis that is concerned with the relationships 1. In vertical analysis, line items on the income statement are generally expressed as a percentage of a. net income. b. net sales. c. cost of goods sold. d. total assets. 2. Vertical analysis is a technique that expresses each item in a financial statement a. in dollars and cents. b. as a percent of the item in the previous year. c. as a percent of a base amo ...

Other / Other 22 Apr 2016

The measures of the ability of a company to meets its long- and short-term obligations 1. _________________ expresses a line item as a percentage of some prior-period amount. 2. _____________________ expresses a line item as a percentage of some other line item for the same period. 3. ____________ are fractions or percentages computed by dividing one account or line-item amount by another. 4. _________________ measur ...

Other / Other 22 Apr 2016

Profitability ratios assess the ability of a company True or false: 1. When computing the quick ratio, a short-term note receivable would be included. 2. Jill's Market has an inventory turnover of 120 times. Scott's Market has a turnover of 128 times. Scott's is more effective in managing inventory. 3. Profitability ratios assess the ability of a company to meets its long- and short-term obligations. 4. The divide ...

Other / Other 22 Apr 2016

Horizontal analysis is a technique for evaluating a series 1. The two major techniques for financial analysis are a. horizontal analysis and circular analysis. b. receivable analysis and profitability analysis. c. vertical analysis and budget analysis. d. common-size analysis and ratio analysis. 2. Horizontal analysis is also known as a. linear analysis. b. vertical analysis. c. trend analysis. d. budget analysis. ...

Other / Other 22 Apr 2016

The Gift Shoppe's inventory turned over five times 1. Which of the following is an example of liquidity analysis? a. Bonds payable are divided by total liabilities and stockholders' equity. b. Current assets are divided by current liabilities. c. Net income is divided by the number of shares of stock outstanding. d. Net income is divided by total assets. 2. Which of the following is considered a liquidity analysis ratio? a. re ...

Other / Other 22 Apr 2016

The relationship between dividends and the market price Match the following : Select the ratio that each statement below most properly satisfies. a. Dividend yield ratio b. Current ratio c. Debt ratio d. Return on common stockholders' equity ratio e. Times-interest-earned ratio f. Quick ratio g. Debt-to-equity ratio h. Dividend payout ratio i. Price-earnings ratio 1. A measure of the company's ability to pay its short-te ...

Other / Other 22 Apr 2016

Two major forms of common-size analysis are TRUE/FALSE 1. In the vertical analysis of a balance sheet, the base for current liabilities is total liabilities. 2. The use of common-size analysis makes comparisons more meaningful because percentages eliminate the effects of size. 3. Two major forms of common-size analysis are horizontal analysis and vertical analysis. 4. Horizontal analysis involves comparing two or m ...

Other / Other 22 Apr 2016

Investors who prefer gains through appreciation 1. ____________________ represents the percentage of each sales dollar that is left over from net income after all expenses have been subtracted. 2. The ratios that allow investors, creditors, and managers to evaluate the extent to which invested funds are being used efficiently are called ____________. 3. A company measures how efficiently it is using its assets by calculating t ...

Other / Other 22 Apr 2016

The inventory turnover is calculated by dividing 1. If equal amounts are added to the numerator and the denominator of a current ratio equal to one, the ratio will a. increase. b. decrease. c. remain the same. d. equal zero. 2. The quick ratio a. does not include inventory as part of the numerator. b. does not include all current liabilities in the calculation. c. is a quick calculation of an approximation of the curre ...

Other / Other 22 Apr 2016

Times-interest-earned ratio Match the following: Indicate the type of each ratio listed below. a. Liquidity Ratio b. Leverage Ratio c. Profitability Ratio 1. Current ratio 2. Debt-to-equity ratio 3. Earnings per share 4. Return on sales 5. Dividend payout ratio 6. Inventory turnover ratio 7. Times-interest-earned ratio 8. Return on total assets ratio 9. Debt ratio 10. Price-earnings ratio ...

Other / Other 22 Apr 2016