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"40. (Points: 1) At the end of 20B, Storage Comp...

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"40. (Points: 1) At the end of 20B, Storage Company reported outstanding common stock (par $20) of $300,000. Total liabilities were $440,000 and total assets were $860,000. The company had no preferred stock. The book value per share of common stock was a. $29.00. b. $13.90. c. $28.00. d. $14.00. e. None of the above is correct. Save Answer 41. (Points: 1) Bailey Corporation reported the following information for 20A Net income $10,000 Total assests $16,000 Total stockholders' equity $8,000 Morgan's debt/equity ratio was a. .33 or 33%. b. 1.25 or 125 %. c. 1.0 or 100%. d. 3.0 or 300%. e. None of the above is correct. Save Answer 42. (Points: 1) Shore Company reported income before extraordinary items of $25,000, total liabilities of $150,000, and total stockholders' equity of $100,000. The return on assets was a. 10%. b. 25%. c. 16.67%. d. Cannot be determined from the data given. e. None of the above is correct. Save Answer 43. (Points: 1) If the current (working capital) ratio is 2 to 1, the payment of a cash dividend, which was recorded as a liability on the date of declaration, will a. increase the current ratio. b. decrease the current ratio. c. have no effect on the current ratio. d. invalidate earnings per share. e. None of the above is correct. Save Answer 44. (Points: 1) The records of ZZZZ Better Corporation include the following: Average total assets $60,000 Average total liabilities $45,000 Total revenue $107,600 Total expense (including income tax) $104,000 The return on equity is (round to the nearest percent) a. 13%. b. 6%. c. 24%. d. 6%. e. None of the above is correct. Save Answer 45. (Points: 1) An important measure of the average movement of goods "on and off the shelf" of a company is the a. Profit margin. b. Price/earnings ratio. c. Inventory turnover ratio. d. Gross inventory ratio. e. None of the above is correct. Save Answer 46. (Points: 1) Book value per common share a. usually is a good indicator of the market value of the common stock. b. is a good measure of management performance. c. is usually greater than the market value per share. d. is a measure of liquidity. e. is not widely used in assessing the future dividend potential of the corporation. Save Answer 47. (Points: 1) Which of the following ratios is NOT a test of liquidity? a. Receivable turnover. b. Cash ratio. c. Current ratio. d. Quick ratio. e. All of the above are tests of liquidity. Save Answer 48. (Points: 1) Which of the following ratios is not a test of solvency? a. Debt to equity ratio. b. Owners' equity to total equity ratio. c. Creditors' equity to total equity ratio. d. Earnings per share ratio. e. All of the above are tests of solvency. Save Answer 49. (Points: 1) Which of the following ratios is not an indicator of a company's short-term financial strength? a. Price/earnings ratio. b. Receivable turnover. c. Working capital ratio. d. Quick ratio. e. All of the above are indicators of the current position. Save Answer 50. (Points: 1) Which of the following ratios usually is not considered to be a test of profitability? a. Current ratio. b. Profit margin. c. Return on assets. d. Earnings per share. e. None of the above is correct

 

Paper#7696 | Written in 18-Jul-2015

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