ACC 557 Financial AccountingWeek 11 Quiz

Question Details: #21663
ACC 557 Financial AccountingWeek 11 Quiz

ACC557 Week11 Quiz 1- Multiple Choice Question 79Parker Hardware Store had net credit sales of $8,000,000 and cost of goods sold of $5,000,000 for the year. The Accounts Receivable balances at the beginning and end of the year were $600,000 and $700,000, respectively. The receivables turnover was11.4 times.12.3 times.4.6 times.7.7 times.2- Multiple Choice Question 49Which one of the following is not a tool in financial statement analysis?Ratio analysisHorizontal analysisVertical analysisCircular analysis3- IFRS Multiple Choice Question 243Under IFRS, there is no classification forchanges in accounting principles.changes in accounting estimates.discontinued operations.extraordinary items4- Multiple Choice Question 155ACME Company reports income before income taxes of $2,400,000 and had an extra-ordinary loss of $800,000. If the tax rate is 30%,the income before the extraordinary item is $1,680,000.the income before the extraordinary item is $1,920,000.the extraordinary loss will be reported at $240,000.the extraordinary loss would be reported on the income statement at $800,000.5- Multiple Choice Question 65Darius, Inc. has the following income statement (in millions):DARIUS, INC.Income StatementFor the Year Ended December 31, 2012 Net Sales  $300Cost of Goods Sold  120Gross Profit  180Operating Expenses  44Net Income  $136Using vertical analysis, what percentage is assigned to Net Income?100%75.6%45.3%None of these6- Multiple Choice Question 135The following amounts were taken from the financial statements of Plant Company:  2013  2012Total assets  $800,000  $1,000,000Net sales  720,000  650,000Gross profit  352,000  320,000Net income  126,000  117,000Weighted average number of common shares outstanding  90,000  90,000Market price of common stock  $35  $39The return on assets ratio for 2013 is14%32%.28%.16%.7- Multiple Choice Question 174Parrish, Inc. decided on January 1 to discontinue its telescope manufacturing division. On July 1, the division’s assets with a book value of $1,250,000 are sold for $850,000. Operating income from January 1 to June 30 for the division amounted to $125,000. Ignoring income taxes, what total amount should be reported on Parrish’s income statement for the current year under the caption, Discontinued Operations?$400,000 loss$275,000 loss$525,000$125,0008- Multiple Choice Question 112Earnings per share is calculatedonly for preferred stock.only for treasury stock.for common and preferred stock.only for common stock.9- Multiple Choice Question 171The acid-test ratio is also known as thecurrent ratio.fast ratio.quick ratio.times interest earned ratio10- Multiple Choice Question 70In performing a vertical analysis, the base for sales revenues on the income statement isnet income.cost of goods available for sale.net sales.sales.11- Multiple Choice Question 162The order of presentation of nontypical items that may appear on the income statement isOther revenues and expenses, Extraordinary items, Discontinued operations.Extraordinary items, Discontinued operations, Other revenues and expenses.Discontinued operations, Extraordinary items, Other revenues and expenses.Other revenues and expenses, Discontinued operations, Extraordinary items12- Multiple Choice Question 98A measure of the percentage of each dollar of sales that results in net income isreturn on assets.earnings per share.profit margin.return on common stockholders' equity.13- Multiple Choice Question 159Which one of the following would be classified as an extraordinary item?Expropriation of property by a foreign government.Losses attributed to a labor strike.Write-down of inventories.Gains or losses from sales of equipment.14- Multiple Choice Question 122The following information pertains to Sampson Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.AssetsCash and short-term investments  $ 45,000Accounts receivable (net)  25,000Inventory  20,000Property, plant and equipment  210,000  Total Assets  $300,000 Liabilities and Stockholders’ EquityCurrent liabilities  $ 50,000Long-term liabilities 90,000Stockholders’ equity—common  160,000  Total Liabilities and Stockholders’ Equity $300,000 Income StatementSales  $ 120,000Cost of goods sold  66,000Gross profit  54,000Operating expenses  30,000  Net income  $ 24,000 Number of shares of common stock  6,000Market price of common stock  $20Dividends per share  .50What is the current ratio for Sampson?0.641.80:11.30:11.40:115-Multiple Choice Question 170What type of ratios best measure the short-term ability of the enterprise to pay its maturing obligations and to meet unexpected needs for cash?LiquiditySolvencyProfitabilityLeverage
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ACC 557 Financial Accounting Week 11 Quiz

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