ACC 561 Week 2 Study Guide and Practice Quiz
The relationship between current assets and current liabilities is important in evaluating a company’s
- market value.
Which of the following is a measure of liquidity?
- Debt to equity ratio
- Earnings per share
- Working capital
- Profit margin
Current assets divided by current liabilities is known as the
- profit margin.
- capital structure.
- working capital
- current ratio.
Danner Corporation reported net sales of $600,000, $680,000, and $800,000 in the years 2011, 2012, and 2013, respectively. If 2011 is the base year, what percentage do 2013 sales represent of the base?
In analyzing financial statements, horizontal analysis is a
Comparative balance sheets
- are usually prepared for at least one year.
- do not show a comparison of total stockholders’ equity.
- do not show both dollar amount and percentage changes.
- are usually prepared for at least two years.
Assume the following cost of goods sold data for a company:
If 2011 is the base year, what is the percentage increase in cost of goods sold from 2011 to 2013?
Comparisons of data within a company are an example of the following comparative basis:
- Industry averages.
The following schedule is a display of what type of analysis?
Current assets $100,000 25%
Property, plant, and equipment 300,000 75%
Total assets $400,000 100%
- Horizontal analysis
- Differential analysis
- Vertical analysis
- Ratio analysis
A common measure of profitability is the
- return on common stockholders’ equity ratio.
- current ratio.
- current cash debt coverage ratio.
- debt to total assets.
Which one of the following would be considered a long-term solvency ratio?
- Return on total assets
- Debt to total assets ratio
- Current cash debt coverage ratio
- Receivables turnover
The current ratio is
- calculated by subtracting current liabilities from current assets.
- used to evaluate a company’s liquidity and short-term debt paying ability.
- calculated by dividing current liabilities by current assets.
- used to evaluate a company’s solvency and long-term debt paying ability.
Richards, Inc. has the following income statement (in millions):
For the Year Ended December 31, 2012
Net Sales $180
Cost of Goods Sold 60
Gross Profit 120
Operating Expenses 75
Net Income $ 45
Using vertical analysis, what percentage is assigned to net income?
- None of the above.
Related Study Guides
ACC 561 Week 6 WileyPlus Questions 1-5 Study Guide - • Exercises: 20-3 • Exercises: 22-1 • Brief Exercise 23-3 • Brief Exercise 23-4 • Brief Exercise 23-6
ACC 561 Week 6 WileyPlus Questions 1-5 Study Guide Exercises: 20-3 Exercises: 22-1 Brief Exercise 23-3 Brief Exercise 23-4 Brief ...read more
ACC 561 WEEK 4 ASSIGNMENT STUDY GUIDE AND PRACTICE QUIZ
ACC 561 WEEK 4 ASSIGNMENT STUDY GUIDE AND PRACTICE QUIZ STUDY GUIDE QUESTIONS 1-3 Question 1 Duggan Company ...read more
ACC 561 Week 3 Discussion Questions Study Guide
ACC 561 Week 3 Discussion Questions Study Guide DQ 1 What are the differences between a ...read more
ACC 561 Week 6 Practice Quiz Study Guide
ACC 561 Week 6 Practice Quiz Study Guide Question 1 A major accounting contribution to the managerial ...read more