Chapter 4

What financial statement lists assets from current to long term?

• Balance sheet

• Income statement

• Cash flow statement

• Statement of retained earnings

What balance sheet formal is verticle?

• Standard

• Report

• Account

• Inverted

Income statement format that separates cost of goods sold into categories?

• STANDARD

• DETAILED

• EXPANDED

• MULTI-STETP

Net income equals:

• TOTAL REVENUES MINUS COST OF GOODS SOLD

• TOTAL REVENUES MINUS TOTAL EXPENSES

• OPERATING REVENUES MINUS OPERATING EXPENSES

• REVENUES MINUS EXPENSES PLUS INCOME TAXES

Which is not a cash activity listed on the cash flow statememt?

• OPERATING ACTIVITIES

• INVESTING ACTIVITIES

• PURCHASING ACTIVITIES

• FINANCING ACTIVITIES

What financial ratio helps management evaluate profits available for dividends?

• RETENTION RATE

• DEBT RATIO

• DEBT SERVICE COVERAGE RATIO

• CASH RATIO

The days’ sales in inventory ratio formula uses which of the following:

• CURRENT YEAR SALES

• BEGINNING INVENTORY

• PRIOR YEAR SALES

• ENDING INVENTORY

Earnings per share shows investors the __________ earned per outstanding share of stock.

• OPERATING INCOME

• INCOME BEFORE TAXES

• NET INCOME

• INCOME BEFORE INTEREST AND TAXES

The dividend payout ratio is calculated by dividing total dividends by:

• OPERATING INCOME

• INCOME BEFORE TAXES

• INCOME BEFORE INTEREST AND TAXES

• NET INCOME

The profit margin ratio measures the _______________ earned from each dollar of sales.

• OPERATING INCOME

• NET INCOME

• INCOME BEFORE TAXES

• INCOME BEFORE INTEREST AND TAXES