FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 17: Financial Statement Analysis

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 101

Multiple Choice

Review LaterAdd Note

Review Later

The percentage analysis of increases and decreases in individual items in comparative financial statements is called

A) vertical analysis
B) solvency analysis
C) profitability analysis
D) horizontal analysis

E) All of the above
F) A) and B)

Correct Answer

verified

Show Answer

Question 102

True/False

Review LaterAdd Note

Review Later

If two companies have the same current ratio,their ability to pay short-term debt is the same.

A) True
B) False

Correct Answer

verified

Show Answer

Question 103

True/False

Review LaterAdd Note

A balance sheet shows cash,$75,000; marketable securities,$115,000; receivables,$150,000; and inventories,$222,500.Current liabilities are $225,000.The current ratio is 2.5.

Use this information for Kellman Company to answer the questions that follow. ​ The balance sheets at the end of each of the first two years of operations indicate the following: ​ -Using the balance sheets for Kellman Company,if net income is $150,000 and interest expense is $20,000 for Year 2,what is the return on stockholders' equity for Year 2?

Using measures to assess a business's ability to pay its current liabilities is called current position analysis.

An acceleration in the collection of receivables will tend to cause the accounts receivable turnover to

Analyzing a company's performance should take into account conditions peculiar to the industry and the general economic conditions.

A company reports the following:​ Determine the times interest earned.Round your answer to one decimal place.

Comparing dividends per share to earnings per share indicates the extent to which the corporation is retaining its earnings for use in operations.

Horizontal analysis is a technique for evaluating financial statement data

Use the information below for Privett Company to answer the questions that follow. ​ -Based on the data for Privett Company,what is the amount of working capital?

Earnings per share amounts are only required to be presented for income from continuing operations and net income on the face of the statement.

Assume the following sales data for a company:​ What is the percentage increase in sales from the preceding year to the current year?

The number of days' sales in receivables is one means of expressing the relationship between average daily sales and accounts receivable.

Hsu Company reported the following on its income statement:​​ Interest expense was $80,000.Hsu Company's times interest earned ratio is

The following information was taken from Slater Company's balance sheet:​ Determine the company's (a)ratio of fixed assets to long-term liabilities and (b)ratio of liabilities to stockholders' equity.Round your answers to one decimal place.

The following information is available for Meyer Company:​ Which of the following statements is correct?

Cash and accounts receivable for Adams Company are provided below.​ What is the amount and percentage of increase or decrease that would be shown with horizontal analysis?

Use the information below for Harding Company to answer the questions that follow. ​ -Based on the data for Harding Company,what is the amount of working capital?

Brock Company's financial information is listed below.Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit.​Assets Liabilities and Stockholders' Equity​ Income Statement ​ What is the current ratio?