This Website Has Been Moved to a New Link


Loading

ACC206 Quiz

Price: $4.99


1. Investing activities include activities that affect the long-term asset section of the balance sheet. (Points : 1)
       True
       False

2. A company reported the following amounts of net income:


2011
$18,000
2012
$24,000
2013
$26,000

Which of the following is the percentage change in net income from 2011 to 2012? (Points : 1)
       33.33%  (24000-18000)/18000
       8.33%
       10.00%
       30.00%
       None of these is correct

3. Which of the following accurately describes working capital? (Points : 1)
       Current assets minus inventory
       Current assets minus current liabilities
       Total debt minus stockholders’ equity
       Cost of goods sold divided by average inventory

4. Avatar Company uses the indirect method to prepare the statement of cash flows. Please refer to the following section of the comparative balance sheet:



2014
2013
Increase/decrease

Accounts payable
$ 4,000
$ 6,000
$(2,000)

Accrued liabilities
2,000
1,000
1,000

Long-term notes payable
84,000
90,000
(6,000)

Total liabilities
$90,000
$97,000
$(7,000)









The change in accounts payable will be shown as a positive cash flow in the adjustments to Net income. (Points : 1)
       True
       False

5. A company reports total assets of $525,000 and stockholders' equity of $395,000. Which of the following is the debt ratio? (Points : 1)
       0.29
       0.71
       0.55
       0.25 ((525000-395000)/525000
       None of these is correct


6. Avatar Company uses the indirect method to prepare the statement of cash flows. Please refer to the following section of the comparative balance sheet:
2014 2013 Increase/decrease
Cash $ 33,000 $ 18,000 $15,000
Accounts receivable 22,000 35,000 (13,000)
Inventory 170,000 115,000 55,000
Total assets $225,000 $168,000 $57,000

The change in inventory will be shown as a positive cash flow in the adjustments to Net income. (Points : 1)
       True
       False

7. Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following information for the year 2014.


Net cash flows from operating activities: $32,000 positive
Net cash flows from investing activities: $38,000 negative
Net cash flows from financing activities: $ 9,000 positive


If the beginning cash balance is $18,000, what would the ending cash balance be? (Points : 1)
       $21,000 (18000+32000-38000+9000)
       $18,000
       $ 3,000
       $15,000
       None of these is correct


8. Investors and management use the statement of cash flows to evaluate a firm's profitability. (Points : 1)
       True
       False

9. The net income for the year ended was $300,000. The company has no preferred stock. Common stockholders’ equity was $1,400,000 at the beginning of the year and $1,600,000 at the end of the year. The return on common stockholders’ equity would be: (Points : 1)
       18.75%.
       20.00%. (300000/ ((1400000+1600000)/2
       21.43%.
       87.5%
       None of these is correct.

10. Peartree Company provides the following income statement for the year 2014:
Sales revenue
$240,000


Cost of goods sold
110,000


Gross profit

$130,000

Operating expenses



Salary expense
45,000


Depreciation expense
12,000


Other operating expenses
23,000


Total operating expenses

80,000

Operating income

50,000

Gain on sale of plant assets

5,000

Interest expense

(1,000)

Net income before income tax

$54,000

Income tax expense

5,000

Net income (loss)

$49,00














How much is the times-interest-earned ratio? (Points : 1)
       0.02
       49.0
       50.0 (50000/1000)
       0.25
       None of these is correct



No comments:

Post a Comment