WorksheetsUnit 7 Review Part 2
Total questions: 10
Worksheet time: 15mins
Which of the following financial statements provides a "snapshot" of a firm's financial condition at a specific point in time?
Income statement
Balance sheet
Profit-and-loss statement
Statement of cash flows
You would like to know the financial results for a publicly traded company for last year. Which report would you download?
Budget
Letter to shareholders
Balance sheet
Income statement
Which of the following financial ratios is sometimes referred to as the banker's ratio because it is often used to evaluate a company's liquidity?
Long-term solvency
Inventory turnover ratio
Current ratio
Earnings per share
Who of the following might investigate and provide litigation support?
Forensic accountant
Noncertified public accountant
Bookkeeper
Controller
The three basic financial statements prepared by accountants are the _______.
balance sheet, budget, and income statement
profit-and-loss statement, budget, and income statement
balance sheet, statement of retained earnings, and statement of cash flows
balance sheet, income statement, and statement of cash flows
Gibson Goods has current assets, including cash and accounts receivable, of $450,000. It owes $290,000 in short-term debt, including trade credit and accounts payable. What is its current ratio?
160,000
740,000
.138
.64
Heritage Mechanical's balance sheet at the end of the year shows assets of $575,000 and owners' equity of $266,000. Which of the following can be assumed on the basis of this information?
The company has a net worth of $309,000.
The company has liabilities of $841,000.
The company has liabilities of $309,000.
The company's liabilities exceed its assets.
Loki and Associates have total assets of 500,000, total liabilities of 150,000 and total equity of 350,000. Calculate their debt ratio.
1.42
3.3
.7
0.3
Loki and Associates have total assets of 500,000, total liabilities of 150,000 and total equity of 350,000. Their total sales amounted to 1,500,000. Calculate their asset turnover ratio.
1.42
3
.7
0.3
Small Corporation had net income of 200,000 and 50,000 outstanding shares. How much will each shareholder receive for the earnings per share?
$2 per share
$4 per share
$2.50 per share
none of the above
