Which of the following ratios measures the firm's performance in generating earn ings that are assignable to the

common shareholders' equity? a. b. c. d. Rate of Return on Common Shareholders' Equity Debt Equity Return on Assets Accounts Payable Turnover

Which of the following approaches does the Financial Accounting Standards Board follow in establishing generally accepted accounting principles? a. An approach that ensures that financial reports conform to incom e tax reports b. A deductive theory-based approach c. A political lobbying approach, which selects accounting methods favored by those involved with financial accounting reports d. Both b and c

Which of the following transactions does NOT result in an inflow of cash? a. b. c. d. Sale of surplus equipment Issuance of common stock Distribution of dividends to shareholders Issuance of long-term debt

A company wants to increase its rate of return on assets from 8 percent to 14 pe rcent. It is believed that the firm's total assets turnover of .667 cannot be ea sily increased at the present time. What must the profit margin percentage be to achieve the desired 14 percent rate of return on assets? a. b. c. d. 7 percent 14 percent 21 percent 28 percent

Assume that the debt-equity ratio of XYZ Company is .5 to 1. If the company issu ed a long-term note in the purchase of some land, what effect would this transac tion have on the debt-equity ratio? a. b. c. d. It would decrease the debt-equity ratio. It would increase the debt-equity ratio. It would have no effect on the debt-equity ratio. The answer cannot be determined from the information given.

Which of the following organizations, despite the fact that it has no legal auth ority, has played a role in developing acceptable accounting principles worldwid e? a. b. c. d. IASC SEC GAAP FASB

XYZ Company sells on credit with terms of Net 30 days. If the company's credit p olicy and collection activity are working efficiently, how many times should the company's Accounts Receivable turn in a year? a. b. c. d. 6 times 8 times 10 times 12 times

Which of the following represents a measure of the assets provided by the origin al shareholder in exchange for an ownership interest in the firm? a. b. c. d. Shareholders' Equity Retained Earnings Cash Assets

The ______________ is computed by dividing net income attributable to common sto ck by the average number of common shares outstanding during the period. a. b. c. d. Quick Ratio Asset Turnover Earnings Per Share Retained Earnings

Which of the following financial statements provides information about economic resources and claims on those resources? a. b. c. d. Income Statement Balance Sheet Statement of Cash Flows All of the above

During the year, XYZ Company issued additional common stock. This transaction is an example of which of the following? a. b. c. d. An investing activity A financing activity An operating activity None of the above

The phenomenon of common shareholders trading at extra risk for a potentially hi gher return is called __________________. a. b. c. d. financial leverage operating leverage liquidity interest coverage ratio

The ______________ is computed by dividing cash flow from operations by average current liabilities. a. b. c. d. Debt Equity Ratio Cash Flow from Operations to Current Liabilities Ratio Current Ratio Quick Ratio

The ____________ is the excess of revenues over expenses for a particular period . a. b. c. d. Net Income Net Loss Cash Inflow Change in Assets

Which of the following equations is incorrect? a. b. c. d. Shareholders' Equity = Contributed Capital + Retained Earnings Revenues - Expenses = Net Income Assets = Liabilities + Equity All of the above equations are correct.

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Changing How the World Works. Item No: 16 of 40 Time Remaining: 0:30:26 Question: A ______________ involves comparing a given firm's ratios with those of other fi rms for a particular period. a. b. c. d. Time Sensitive Analysis Profit Margin Analysis Return on Assets Analysis Cross-Section Analysis

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 17 of 40 Time Remaining: 0:29:38 Question: The _______________ indicates the proportion of total capital supplied by credit ors. a. b. c. d. Gross Margin Debt-Equity Ratio Inventory Turnover Ratio Asset Turnover Ratio

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 18 of 40 Time Question: XYZ Company reports total assets respectively, at the conclusion ed $95,000 during the first year the firm's contributed capital? a. b. c. d. $225,000 $180,000 $130,000 $65,000 Remaining: 0:29:00 and total liabilities of $425,000 and $200,000, of its first year of business. The company earn and distributed $50,000 in dividends. What was

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 19 of 40 Time Remaining: 0:28:45 Question: The _______________ is a measure of a firm's ability to control the level of cos ts, or expenses, relative to sales. a. b. c. d. Asset Turnover Profit Margin Ratio Times Interest Earned Inventory Turnover

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 20 of 40 Time Remaining: 0:28:15 Question: Which of the following is NOT a current liability? a. b. c. d. Mortgage Payable Accounts Payable Salaries Payable Taxes Payable

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 21 of 40 Time Remaining: 0:27:48 Question: Which of the following does NOT describe an expense?

a. b. c. d.

Dividends paid to shareholders Cost of merchandise sold Salaries earned by employees but not yet paid Depreciation of the firm's building for the particular period

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 22 of 40 Time Remaining: 0:27:01 Question: During the year, XYZ Company sold one of its warehouses for $250,000 cash. This transaction is an example of which of the following? a. b. c. d. An investing activity A financing activity An operating activity None of the above

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 23 of 40 Time Remaining: 0:26:18 Question: The _______________ is the financial statement that presents the results of earn ings activity over time. a. b. c. d. Balance Sheet Income Statement Cash Flow Statement Retained Earnings Statement

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Item No: 24 of 40 Time Remaining: 0:25:30 Question: Which of the following can be described as "claims on resources that result from benefits previously received by the company, and which require that a specified amount be paid on a specified date"? a. b. c. d. Shareholders' Equity Contributed Capital Liabilities Retained Earnings

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 25 of 40 Time Remaining: 0:24:26 Question: In computing the quick ratio, which of the following items is customarily exclud ed from the numerator? a. b. c. d. Cash Inventory Marketable Securities Accounts Receivable

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 26 of 40 Time Remaining: 0:23:48 Question: The ____________ is the financial statement that presents an overall view of a c ompany's financial position as of a given date. a. b. c. d. Balance Sheet Income Statement Cash Flow Statement Retained Earnings Statement

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 27 of 40 Time Remaining: 0:23:27 Question: Which of the following ratios assesses the firm's operating performance independ ently of financing decisions? a. b. c. d. Rate of Return on Assets Inventory Turnover Profit Ratio Net Income

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 28 of 40 Time Remaining: 0:22:22 Question: Which of the following transactions does NOT result in an outflow of cash? a. b. c. d. Purchase of a tract of land Payment of dividends to shareholders Reacquisition of some of the company's common stock Issuance of long-term debt

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 29 of 40 Time Remaining: 0:21:50 Question: Which of the following is NOT a current asset? a. b. c. d. Cash Land Merchandise Inventory Accounts Receivable

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 30 of 40 Time Remaining: 0:21:32 Question: The ______________ is a private sector group that has been given the responsibil ity of establishing acceptable accounting standards in the United States. a. b. c. d. IASC SEC GAAP FASB

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 31 of 40 Time Remaining: 0:21:12 Question: The ________________ indicates the length of the period between the purchase of inventory on account and the payment of cash to suppliers. a. b. c. d. Accounts Receivable Turnover Ratio Inventory Turnover Net Profit Accounts Payable Turnover Ratio

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 32 of 40 Time Remaining: 0:20:24 Question: Which of the following would not appear on a Balance Sheet?

a. b. c. d.

Retained Earnings Bonds Payable Cost of Goods Sold Accounts Receivable

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 33 of 40 Time Remaining: 0:20:05 Question: Financial statements that are prepared using a particular set of assumptions are called ___________________. a. b. c. d. Income Statements Tax Liability Statements Pro-Forma Financial Statements Retained Earnings

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 34 of 40 Time Remaining: 0:19:24 Question: Assuming that XYZ Company has a current ratio of 2:1, which of the following tra nsactions would result in an increase in the company's current ratio? a. b. c. d. Declaring cash dividends payable next period Paying long-term debt Paying accounts payable Borrowing money on a 6-month note

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Item No: 35 of 40 Time Remaining: 0:17:38 Question: Which of the following would NOT be used to evaluate a firm's operating cycle? a. b. c. d. Accounts Payable Turnover Ratio Inventory Turnover Ratio Current Ratio Accounts Receivable Turnover Ratio

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 36 of 40 Time Remaining: 0:16:55 Question: Which of the following ratios would NOT be used to assess a firm's long-term liq uidity risk? a. b. c. d. Debt-Equity ratio Long-Term Debt ratio Interest Coverage ratio Current Ratio

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 37 of 40 Time Remaining: 0:16:24 Question: The ____________ is the excess of expenses over revenue for a given period. a. b. c. d. Net Profit Assets Equity Net Loss

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Changing How the World Works. Item No: 38 of 40 Time Remaining: 0:15:56 Question: If a company's rate of return on assets is 20 percent and the profit margin perc entage is 5 percent, the company's total assets turnover must be which of the fo llowing? a. b. c. d. 1 4 5 20

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 39 of 40 Time Remaining: 0:14:55 Question: XYZ Company's retained earnings increased by $100,000 during the year. Also duri ng the year, dividends totaling $22,500 were declared and paid to shareholders. What was XYZ Company's net income for the year? a. b. c. d. $22,500 $77,500 $100,000 $122,500

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 40 of 40 Time Remaining: 0:14:17 Question: Which of the following financial statements provides information about inflows a nd outflows of cash? a. b. c. d. Income Statement Balance Sheet Statement of Cash Flows All of the above

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Topic Correct Answers 5. General Financial Statements 2. Accounting Institutions 33% 7. Ratio Selection 100% 4. Financial Ratio Formulas 86% 1. Accounting Cycle 0% 3. Accounting Transactions 50% 6. Ratio Comparison 100% Test Statistics