Multiple Choice
-Comprehensive income would not include
unrealized gains on available-for-sale securities.
dividends declared.
discontinued operations.
extraordinary gains and losses.
Multiple Choice Question 78
-Which of the following would be considered an "Other Comprehensive Income" item?
unrealized loss on available-for-sale securities
extraordinary loss related to flood
gain on disposal of discontinued operations
net income
-Danner Corporation reported net sales of $600,000, $680,000, and $800,000 in the years 2011, 2012, and 2013, respectively. If 2011 is the base year, what percentage do 2013 sales represent of the base?
33%
75%
133%
113%
-Assume the following sales data for a company:
2013 $900,000
2012 805,000
2011 700,000
-If 2011 is the base year, what is the percentage increase in sales from 2011 to 2012?
112%
29%
15%
129%
-In a common size balance sheet, the 100 percent figure is
total liabilities.
total assets.
total property, plant and equipment.
total current assets.
-Which one of the following is not a characteristic generally evaluated in ratio analysis?
Profitability
Marketability
Solvency
Liquidity
-Short-term creditors are usually most interested in assessing
marketability.
solvency.
liquidity.
profitability.
Multiple Choice Question 128
-A common measure of liquidity is
return on assets.
receivables turnover.
profit margin.
debt to equity.
Multiple Choice Question 133
-Long-term creditors are usually most interested in evaluating
solvency.
marketability.
liquidity.
profitability.
-A common measure of profitability is the
return on common stockholders' equity ratio.
debt to total assets.
current ratio.
current cash debt coverage ratio.
Multiple Choice Question 134
-Which one of the following would be considered a long-term solvency ratio?
Receivables turnover
Return on total assets
Current cash debt coverage ratio
Debt to total assets ratio
Multiple Choice Question 138
-The current ratio is a
liquidity ratio.
profitability ratio.
cash flow ratio.
long-term solvency ratio.
Multiple Choice Question 143
-A high receivables turnover ratio indicates
the company's sales have increased.
a large portion of the company's sales are on credit.
many customers are not paying their receivables.
customers are making payments quickly.
Multiple Choice Question 148
-Crestwood Department Store had net credit sales of $13,000,000 and cost of goods sold of $9,000,000 for the year. The average inventory for the year amounted to $2,500,000. The inventory turnover ratio for the year is
5.2 times.
3.0 times.
3.6 times.
1.4 times.
-The assets turnover ratio measures
how often a company replaces its assets.
how efficiently a company uses its assets to generate sales.
the overall rate of return on assets.
the portion of the assets that have been financed by creditors.
Multiple Choice Question 160
-The debt to total assets ratio measures
the percentage of the total assets provided by creditors.
whether interest can be paid on debt in the current year.
the proportion of interest paid relative to dividends paid.
the company's profitability.
Multiple Choice Question 162
-Trading on the equity (leverage) refers to the
amount of capital provided by owners.
use of borrowed money to increase the return to owners.
number of times interest is earned.
amount of working capital.
Multiple Choice Question 164
-A company that is leveraged is one that
has a high current ratio.
contains equity financing.
has a high earnings per share.
contains debt financing.
Multiple Choice Question 175
-A company has a receivables turnover ratio of 10. The average net receivables during the period are $600,000. What is the amount of net credit sales for the period?
$60,000
$6,000,000
$720,000
Cannot be determined from the information given.
Multiple Choice Question 180
-A successful grocery store would probably have
a low inventory turnover.
a high inventory turnover.
low volume.
zero profit margin.