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FIN 382 Final Exam - Financial Statement Analysis

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Question;FIN 382 - Financial Statement Analysis - Complete 2 PAGES Final Exam;PAGE 1;1. The realization principle leads accountants to recognize revenue;2. In addition to the balance sheet, the income statement, and the;statement of cash flows, a complete set of financial statements must;include;3. The income statement summarizes;4. Denver Dynamics has a net income of $2,000,000. Oakland;Enterprises has a net income of $2,500,000. Which of the following best;compares the profitability of Denver to Oakland?;5. Which of the following is a false statement, as it relates to analysis?;6. Other than December, the most popular month for a fiscal year end is;7. Who is responsible for the preparation and the integrity of financial statements?;8. Which of the following is not a type of audit opinion?;9. The two primary qualities that make accounting information useful for decision-making are;10. Which of the following statements best compares long-term borrowing capacity ratios?;11. The debt ratio is calculated as;12. The debt ratio indicates;13. Which of the following is included in operating income?;14. Which of the following is classified as an extraordinary item on the income statement?;15. What significant improvement in the financial reporting of pensions have pension accounting rules provided?;16. The following relate to Data Original in 2006. What is the ending inventory? Purchases: $540,000 Beginning Inventory: 80,000 Purchase Returns: 10,000 Sales: 800,000 Cost of Goods Sold: 490,000;17. Extraordinary items should be eliminated in the analysis of income because;18. Which of the following types of business would normally have the longest operating cycle?;19. Which of the following is considered the most indicative of a firm's short-term debt paying ability?;20. A low working capital turnover ratio indicates;21. Investments classified as marketable securities should be;22. For cash to be classified as a current asset, it must be;23. If a firm pledges its receivables and its inventory, then the best indicator of its short-term liquidity may be indicated by;24. Which of the following is not classified as a current asset?;25. Which of the following current assets will not generate cash in the future?;26. The following requires separate earnings per share disclosure;27. Stock appreciation rights can have a material impact on;28. A firm might have a low dividend payout ratio if it plans;29. In computing earnings per share, preferred dividends are subtracted from;30. Using financial leverage is a good financial strategy from the viewpoint of stockholders of companies having;31. The best dividend payout ratio;32. Which of the following is typically considered the most indicative of a firm's short-term debt paying ability?;33. When performing year to year change analysis you should remember that;PAGE 2;1. Szabo Company computed the following data for 2003: Days' sales in receivables: 38.7 days Accounts receivable turnover: 9.6 times Accounts receivable turnover in days: 33.1 days Days' sales in inventory: 68.5 days Merchandise inventory turnover: 5.9 times Inventory turnover in days: 58.7 days. The estimated operating cycle for 2003 is;2. Smith Company presents the following data for 2006. Inventories, beginning of year: $310,150 Inventories, end of year: $340,469 Cost of goods sold: $2,103,696 Net sales: $8,690,150 The number of days' sales in inventory is;3. The following data were gathered from the annual report of Desk Products. Market price per share $30.00Number of common shares 10,000Preferred stock 5% $100 per $10,000Common equity $140,000The book value per share is;4. Execon Company had total assets of $200,000, total liabilities of $110,000, and shareholders' equity of$90,000;at the beginning of the year. For the year, Execon Company earned net;income of $75,000 and declared cash dividends of $30,000. At the end of;the year, the company had total assets of $300,000 and its shareholders;equity wasat $135,000. At the end of the year, Execon Corporation had total liabilities of

 

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