ACC2052t2sg - ACC2052t2 Multiple Choice Identify the letter...

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ACC2052t2 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. The percentage analysis of increases and decreases in individual items in comparative financial statements is called: a. vertical analysis b. solvency analysis c. profitability analysis d. horizontal analysis ____ 2. The percent of fixed assets to total assets is an example of: a. vertical analysis b. solvency analysis c. profitability analysis d. horizontal analysis ____ 3. The ability of a business to pay its debts as they come due and to earn a reasonable amount of income is referred to as: a. solvency and leverage b. solvency and profitability c. solvency and liquidity d. solvency and equity ____ 4. The ability of a business to earn a reasonable amount of income is referred to as the factor of: a. leverage b. profitability c. wealth d. solvency ____ 5. Which of the following is not an analysis used in assessing solvency? a. inventory analysis b. number of times interest charges are earned c. asset turnover d. accounts receivable analysis ____ 6. Which of the following is not an analysis used in assessing solvency? a. number of times interest charges are earned b. current position analysis c. ratio of net sales to assets d. inventory analysis ____ 7. Which of the following is included in the computation of the acid-test ratio? a. prepaid rent b. accounts receivable c. inventory d. supplies ____ 8. Based on the following data for the current year, what is the accounts receivable turnover? Net sales on account during year $ 500,000 Cost of merchandise sold during year 300,000 Accounts receivable, beginning of year 45,000 Accounts receivable, end of year 35,000 Inventory, beginning of year 90,000
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Inventory, end of year 110,000 a. 12.5 b. 14.3 c. 11.1 d. 5.0 ____ 9. Based on the following data for the current year, what is the number of days' sales in accounts receivable? Net sales on account during year $ 730,000 Cost of merchandise sold during year 300,000 Accounts receivable, beginning of year 45,000 Accounts receivable, end of year 35,000 Inventory, beginning of year 90,000 Inventory, end of year 110,000 a. 7.5 b. 18.25 c. 17.5 d. 12.5 ____ 10. Based on the following data for the current year, what is the inventory turnover? Net sales on account during year $ 500,000 Cost of merchandise sold during year 300,000 Accounts receivable, beginning of year 45,000 Accounts receivable, end of year 35,000 Inventory, beginning of year 90,000 Inventory, end of year 110,000 a. 3.0 b. 8.0 c. 4.0 d. 3.8 ____ 11. Balance sheet and income statement data indicate the following: Bonds payable, 10% (issued 1988 due 2012) $1,000,000 Preferred 5% stock, $100 par (no change during year) 300,000 Common stock, $50 par (no change during year) 2,000,000 Income before income tax for year 300,000 Income tax for year 80,000 Common dividends paid 50,000 Preferred dividends paid 15,000 Based on the data presented above, what is the number of times bond interest charges were earned (round to
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ACC2052t2sg - ACC2052t2 Multiple Choice Identify the letter...

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