Question 1

Phips Company paid total cash dividends of $200,000 on 25,000 outstanding common shares.On the most recent trading day,the common shares sold at $80.What is this company's dividend yield?

Accepted Answer

A)  25%
B)  6.4%
C)  16.9%
D)  10%E) C) and D)
F) B) and C)

Question 2

As of December 31,Year 1,Gant Corporation had a current ratio of 1.29,quick ratio of 1.05,and working capital of $18,000.The company uses a perpetual inventory system and sells merchandise for more than it cost.On January 1,Year 2,Gant sold inventory on account for $6,000.Which of the following statements is not true?

Accepted Answer

A)  Gant's current ratio will decrease.
B)  Gant's quick ratio will increase.
C)  Gant's working capital will increase.
D)  None of these answers is correct.E) A) and D)
F) B) and C)

Question 3

A company has an obligation to provide highly detailed information on its financial statements.

Accepted Answer

A) True 
 B)False

Question 4

Benson Company received cash of $5,000,000 by issuing 20-year bonds payable.As a result of this transaction,the company's current ratio will:

Accepted Answer

A)  Remain the same.
B)  Increase.
C)  Decrease.
D)  Cannot be determined.E) B) and C)
F) A) and D)

Question 5

Which type of approach should be used when evaluating corporate results using horizontal analysis?

Accepted Answer

A)  Study of absolute amounts
B)  Percentages
C)  Trends
D)  All of these answers are correct.E) A) and D)
F) A) and B)

Question 6

You are considering an investment in Apple stock and wish to assess the firm's short-term debt-paying ability.All of the following ratios are used to assess liquidity except:

Accepted Answer

A)  Debt to equity ratio.
B)  Inventory turnover.
C)  Quick ratio.
D)  Accounts receivable turnover.E) B) and D)
F) C) and D)

Question 7

Rialto Company collected $5,000 on account.What impact will this transaction have on the firm's current ratio?

Accepted Answer

A)  No impact
B)  Increase it
C)  Decrease it
D)  Not enough information is provided to answer the question.E) B) and C)
F) A) and D)

Question 8

Horizontal analysis is also known as:

Accepted Answer

A)  Liquidity analysis.
B)  Trend analysis.
C)  Revenue analysis.
D)  Variance analysis.E) B) and C)
F) A) and D)

Exam 13: Financial Statement Analysis

Horizontal analysis is also known as:

Correct Answer
verified

A company has an obligation to provide highly detailed information on its financial statements.

Correct Answer
verified

Which type of approach should be used when evaluating corporate results using horizontal analysis?

Correct Answer
verified

Correct Answer
verified

Benson Company received cash of $5,000,000 by issuing 20-year bonds payable.As a result of this transaction,the company's current ratio will:

Correct Answer
verified

Rialto Company collected $5,000 on account.What impact will this transaction have on the firm's current ratio?

Correct Answer
verified

You are considering an investment in Apple stock and wish to assess the firm's short-term debt-paying ability.All of the following ratios are used to assess liquidity except:

Correct Answer
verified

Phips Company paid total cash dividends of $200,000 on 25,000 outstanding common shares.On the most recent trading day,the common shares sold at $80.What is this company's dividend yield?

Correct Answer
verified

Exam 13: Financial Statement Analysis

Horizontal analysis is also known as:

Correct AnswerverifiedShow Answer

A company has an obligation to provide highly detailed information on its financial statements.

Correct AnswerverifiedShow Answer

Which type of approach should be used when evaluating corporate results using horizontal analysis?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Benson Company received cash of $5,000,000 by issuing 20-year bonds payable.As a result of this transaction,the company's current ratio will:

Correct AnswerverifiedShow Answer

Rialto Company collected $5,000 on account.What impact will this transaction have on the firm's current ratio?

Correct AnswerverifiedShow Answer

You are considering an investment in Apple stock and wish to assess the firm's short-term debt-paying ability.All of the following ratios are used to assess liquidity except:

Correct AnswerverifiedShow Answer

Phips Company paid total cash dividends of $200,000 on 25,000 outstanding common shares.On the most recent trading day,the common shares sold at $80.What is this company's dividend yield?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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