WorksheetsPRE-UTS ALK
Total questions: 10
Worksheet time: 13mins
Which of the following best describes the role of financial statement analysis?
To provide information about a company’s performance.
To provide information about a company’s changes in financial position.
To form expectations about a company’s future performance and financial position.
Accounting policies, methods, and estimates used in preparing financial statements are most likely to be found in the:
auditor’s report.
management commentary.
notes to the financial statements.
A company’s profitability over a period of time is best evaluated using the:
balance sheet
income statement
statement of cash flow
statement of retained earnings
Resources controlled by a company as a result of past events are:
equity
assets
liability
Which of the following is most likely classified as a current liability?
Payment received for a product due to be delivered at least one year after the balance
sheet date.
Payments for merchandise due at least one year after the balance sheet date but still
within a normal operating cycle.
Payment on debt due in six months for which the company has the unconditional
right to defer settlement for at least one year after the balance sheet date.
A company has total liabilities of £35 million and total stockholders’ equity of £55 million. Total liabilities are represented on a vertical common-size balance sheet by a percentage closest to:
35%
39%
64%
An investor concerned whether a company can meet its near-term obligations is most likely to calculate the:
current ratio.
return on total capital.
financial leverage ratio.
Revenue $1,000,000
Returns of goods sold $100,000
Cash collected $800,000
Cost of goods sold $700,000
Under the accrual basis of accounting, how much net revenue would be reported in income statement?
$200,000.
$900,000.
$1,100,000.
Which statement is most accurate? A common-size income statement:
restates each line item of the income statement as a percentage of net income.
allows an analyst to conduct cross-sectional analysis by removing the effect of company size.
standardizes each line item of the income statement but fails to help an analyst identify
differences in companies’ strategies.
At the beginning of 2019, Glass Manufacturing purchased a new machine for its assembly line at a cost of $600,000. The machine has an estimated useful life of 10 years and an estimated residual value of $50,000.
Under the straight-line method, how much depreciation would Glass take in 2020 for financial reporting purposes?
$55,000.
$60,000.
$65,000.
