WorksheetsACC305 CHAP 1-4
Total questions: 15
Worksheet time: 8mins
. Which of the following is not a common tool used in financial statement analysis?
Random walk analysis
Ratio analysis
Common size statement analysis
Trend series analysis
While determining the most profitable company from the given number of companies, which of the following would be the best indicator of relative profitability?
Highest net income
Highest retained earnings
Highest return on equity
Highest operating margin
Liquidity of a company is generally defined as a measure of:
A. the ability of a company to pay its employees in a timely manner.
B. the ability to pay interest and principal on all debt.
C. the ability to pay dividends.
D. the ability to pay current liabilities.
Which of the following ratios does not relate to market price of a company under analysis?
A. Price-to-earnings
B. Earnings yield
C. Price-to-book
D. Return on common equity
Net income that has not distributed as dividends is call:
a. Capital
b. Retained earning
c. Profit before tax
d. Additional paid-in capital
Treasury stock is:
Common stock issued by the U.S. government.
Preferred stock issued by the U.S. government.
Common stock that has been repurchased and is being held by the issuing company.
A corporation's common stock outstanding.
A corporation's common stock outstanding.
I. Major acquisition
II. Audited financial statements
III. Bankruptcy
IV. Change in management control
A. I and III
B. II and IV
C. I, III and IV
D. I, II, III and IV
The primary responsibility for fair and accurate financial reporting rests with the:
A. board of directors.
B. SEC.
C. management.
D. auditors.
Which of the following would not be considered a source of financing?
Prepaid expense
Unearned revenue
Retained earnings
Debentures
Which of the following is an example of off-balance sheet financing?
A. Operating leases
B. Capital leases
C. Issuance of convertible bonds
D. Issuance of common stock
Which of the following is reported in the equity section of the balance sheet?
Redeemable Preferred stock
Treasury stock
Investment in affiliates
Debentures
Which of the following would not be classified as a current asset?
A. Inventory
B. Accounts payable
C. Accounts receivable
D. Prepaid expenses
The use of LIFO rather than FIFO for inventory costing under normal economic conditions results in:
I. lower net income.
II. higher total assets.
III. gher retained earnings.
IV. unchanged retained earnings.
A. II and III
B. I, II and IV
C. I only
D. I and IV
Which of the following is not considered an intangible asset?
A. Goodwill
B. Customer lists
C. Prepaid advertising expenses
D. Memberships
Depreciation is based on the principle of:
A. allocation.
B. appropriation.
C. estimation.
D. approbation.
