Details of this Paper

Saint leo MBA560 quiz 5 (feb 06, 2014)




Question;1.;The study of an individual financial statement item over several accounting periods is called;(Points: 2);ratio analysis.vertical analysis.liquidity analysis.horizontal analysis.;Question 2.;2.;Select the incorrectstatement regarding ratio analysis.;(Points: 2);Ratio analysis is a specific form of horizontal analysis.Ratio analysis involves making comparisons between different accounts in the same set of financial statements.There are many different ratios available for evaluating a firm's performance.Some ratios involve an account from the balance sheet and one from the income statement.;Question 3.;3.;Otteman Company reported net income of $16,700 on gross sales;of $80,000. The company has average total assets of $115,200, of which;$100,000 is property, plant, and equipment. What is the company's return;on investment?;(Points: 2);69.4%18.0%14.5%12.5%;Question 4.;4.;Select the incorrect statement regarding the information disclosed in financial statements.;(Points: 2);Financial statements should be detailed enough to answer almost any accounting question an investor might have.Some information disclosed in financial statements may be irrelevant to some users.The costs of providing all possible accounting information about a firm would be too prohibitive to the business.When too much information is presented users may suffer from information overload.;Question 5.;5.;The accounting concept or principle that is perhaps the;greatest single cause in distorting the results of financial statement;analysis is the;(Points: 2);matching principle.historical cost concept.conservatism principle.time value of money concept.;Question 6.;6.;Common methods of financial statement analysis include all of the following except;(Points: 2);horizontal analysis.incremental analysis.vertical analysis.ratio analysis.;Question 7.;7.;Select the incorrectstatement regarding the return on equity (ROE) measure.;(Points: 2);ROE is used to measure the profitability of the firm in relation to the amount invested by stockholders.A;company?s ROE is lower than its return on investment because ROE does;not consider that part of the business that is financed by debt.ROE is affected by a company?s use of leverage.ROE equals net income divided by average total stockholders' equity.;Question 8.;8.;Sliefert Company provided the following information from its financial records:Net income$200,000Total stockholders? equity$800,000Preferred dividends$10,000Common shares outstanding, 12/31120,000Preferred rights$150,000 What is the company's book value per share?;(Points: 2);$1.67$6.67$5.42$1.58;Question 9.;9.;The Haas Company paid total cash dividends of $44,000 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?;(Points: 2);2.2%3.2%5%14.1%;Question 10.;10.;Financial statement analysis involves forms of comparison including;(Points: 2);comparing changes in the same item over a number of periods.comparing key relationships within the same year.comparing key items to industry averages.all of the above.;Question 11.;11.;Which of the following transactions would cause net income for the period to be lower?;(Points: 2);Paid $1,600 cash for raw material costPaid administrative salaries of $2,500Depreciated production equipment for $3,000Purchased $5,000 of merchandise inventory;Question 12.;12.;Which of the following activities adds value to a product or service?;(Points: 2);Inspection timeMove timeProcess timeWait time;Question 13.;13.;Which of the following statements is true with regard to;product costs versus general, selling, and administrative costs?;(Points: 2);Product costs associated with unsold units appear on the income statement as general expenses.General, selling, and administrative costs appear on the balance sheet.Product costs associated with units sold appear on the Income Statement as cost of good sold expense.All of the above.;Question 14.;14.;Which of the following should not be recorded as an expense?;(Points: 2);Paid office salariesPaid factory maintenance costsPaid product advertising costsPaid sales commissions;Question 15.;15.;Select the incorrect statement regarding costs and expenses.;(Points: 2);Some costs are initially recorded as expenses while others are initially recorded as assets.Expenses are incurred when assets are used to generate revenue.Manufacturing-related costs are initially recorded as expenses.Non-manufacturing costs should be expensed in the period in which they are incurred.;Question 16.;16.;During its first year of operations, Martin Company paid;$4,000 for direct materials and $8,500 for production workers' wages.;Lease payments and utilities on the production facilities amounted to;$7,500 while general, selling, and administrative expenses totaled;$3,000. The company produced 5,000 units and sold 4,000 units at a price;of $7.50 a unit. What is the amount of gross margin for the first year?;(Points: 2);$20,000$12,000$7,500$14,000;Question 17.;17.;All of the following are upstream costs except;(Points: 2);research and development.selling costs.costs to build a prototype product.;Question 18.;18.;Choose the answer that is not a distinguishing characteristic of financial accounting information.;(Points: 2);It is global information that reflects the performance of the whole company.It is time horizon is the present and future.It is more concerned with financial data than physical or economic data.It is more highly regulated than managerial accounting information.;Question 19.;19.;Which of the following most exemplifies the value-added principle?;(Points: 2);An ongoing process where continuous improvement is the goalA competitive management program that emphasizes qualityInformation gathering and reporting activities that are restricted to those activities that add value in excess of their costManagerial accounting information is measured in economic, physical, and financial terms;Question 20.;20.;Which of the following is not one of the four Standards of Ethical Conduct for Management Accountants?;(Points: 2);CompetenceConfidentialityIntegrityEducation


Paper#50659 | Written in 18-Jul-2015

Price : $27