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Define solvency and profitability.  How are they alike?

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Solvency is the ability of a company to ...

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Income statement information for Sadie Company is below: Income statement information for Sadie Company is below: Using vertical analysis of the income statement for Sadie Company, determine the gross profit margin. A) 100% B) 66% C) 34% D) 29% Using vertical analysis of the income statement for Sadie Company, determine the gross profit margin.


A) 100%
B) 66%
C) 34%
D) 29%

E) A) and D)
F) B) and D)

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Based on the above data, what is the amount of quick assets? A) $205,000 B) $203,000 C) $131,000 D) $66,000 Based on the above data, what is the amount of quick assets?


A) $205,000
B) $203,000
C) $131,000
D) $66,000

E) A) and B)
F) A) and C)

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Based on the following data for the current year, what is the number of days' sales in accounts receivable? Based on the following data for the current year, what is the number of days' sales in accounts receivable? A) 7.3 B) 2.5 C) 14.6 D) 25


A) 7.3
B) 2.5
C) 14.6
D) 25

E) B) and C)
F) B) and D)

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D

Abigail Company reports the following: Abigail Company reports the following: Determine: (a) rate earned on stockholders' equity, (b) rate earned on common stockholders' equity.   Round your answer to one decimal place. Determine: (a) rate earned on stockholders' equity, (b) rate earned on common stockholders' equity.   Round your answer to one decimal place.

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(a) Rate earned on stockholders' equity ...

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A company reports the following: A company reports the following: Determine: (a) rate earned on stockholders' equity (b) rate earned on common stockholders' equity.   Round your answer to one decimal place. Determine: (a) rate earned on stockholders' equity (b) rate earned on common stockholders' equity.   Round your answer to one decimal place.

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(a) Rate earned on stockholders' equity ...

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In horizontal analysis, each item is expressed as a percentage of the


A) base year figure
B) retained earnings figure
C) total assets figure
D) net income figure

E) B) and C)
F) A) and D)

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The particular analytical measures chosen to analyze a company may be influenced by all of the following except


A) industry type
B) capital structure
C) diversity of business operations
D) product quality or service effectiveness

E) None of the above
F) C) and D)

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D

Balance sheet and income statement data indicate the following: Balance sheet and income statement data indicate the following: Based on the data presented above, what is the number of times bond interest charges were earned (round to one decimal point) ? A) 1.5 B) 6.4 C) 6.5 D) 5.5 Based on the data presented above, what is the number of times bond interest charges were earned (round to one decimal point) ?


A) 1.5
B) 6.4
C) 6.5
D) 5.5

E) A) and D)
F) C) and D)

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C

The denominator of the rate of return on total assets ratio is the average total assets.

A) True
B) False

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Which of the following is considered an unusual item affecting the prior period's income statement?


A) a change in accounting principles
B) fixed asset impairments
C) an extraordinary item
D) discontinued operations

E) None of the above
F) C) and D)

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Condensed data taken from the ledger of St. Louis Company at December 31, for the current and preceding years, are as follows: Condensed data taken from the ledger of St. Louis Company at December 31, for the current and preceding years, are as follows: Prepare a comparative balance sheet, with horizontal analysis, for December 31, Year 2 and Year 1. (Round percents to one decimal point.) Prepare a comparative balance sheet, with horizontal analysis, for December 31, Year 2 and Year 1. (Round percents to one decimal point.)

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The purpose of an audit is to


A) determine whether or not a company is a good investment
B) render an opinion on the fairness of the statements
C) determine whether or not a company complies with corporate social responsibility
D) determine whether or not a company is a good credit risk

E) C) and D)
F) A) and B)

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Prepare an income statement using the following data for New Orleans Adventures for the year ended December 31: Prepare an income statement using the following data for New Orleans Adventures for the year ended December 31:

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All of the following are typically included in the management's discussion and analysis in annual reports except


A) explanations of any significant changes between the current and prior years' financial statements
B) management's assessment of liquidity
C) journal entries
D) off-balance-sheet arrangements

E) A) and C)
F) A) and D)

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The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. What are the dividends per common share for Diane Company? A) $20.00 B) $3.00 C) $0.67 D) $1.50 The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. What are the dividends per common share for Diane Company? A) $20.00 B) $3.00 C) $0.67 D) $1.50 The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. What are the dividends per common share for Diane Company? A) $20.00 B) $3.00 C) $0.67 D) $1.50 The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. What are the dividends per common share for Diane Company? A) $20.00 B) $3.00 C) $0.67 D) $1.50 What are the dividends per common share for Diane Company?


A) $20.00
B) $3.00
C) $0.67
D) $1.50

E) A) and B)
F) B) and C)

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The dividend yield rate is equal to the dividends per share divided by the par value per share of common stock.

A) True
B) False

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The following selected data were taken from the financial statements of the Winter Group for the three most recent years of operations: The following selected data were taken from the financial statements of the Winter Group for the three most recent years of operations: The Year 3 net income was $242,000 and the Year 2 net income was $308,000.  No dividends on common stock were declared during the 3 years. (a)  Determine the rate earned on assets, the rate earned on stockholders' equity, and the rate earned on       common stockholders' equity for Years 2 and 3. Round to one decimal place. (b) What conclusion can be drawn from these data as to the company's profitability? The Year 3 net income was $242,000 and the Year 2 net income was $308,000.  No dividends on common stock were declared during the 3 years. (a)  Determine the rate earned on assets, the rate earned on stockholders' equity, and the rate earned on       common stockholders' equity for Years 2 and 3. Round to one decimal place. (b) What conclusion can be drawn from these data as to the company's profitability?

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(a) Rate earned on assets = (Net income ...

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The auditor's report is where the auditor certifies that the financial statements are correct and accurate.

A) True
B) False

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Based on the following data for the current year, what is the inventory turnover? Based on the following data for the current year, what is the inventory turnover? A) 2.7 B) 9.7 C) 2.5 D) 3.0


A) 2.7
B) 9.7
C) 2.5
D) 3.0

E) A) and B)
F) B) and D)

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Showing 1 - 20 of 183

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