Practice Exam
1)
As of Dec. 31, 2013, a company had current assets of $600,000 and current liabilities of
$300,000. Sales of the company are expected to increase by 10 percent for each of the
next two years. If all current assets and current liability accounts increase proportionately
with sales, what would be the projected current ratio of the company on Dec. 31, 2015?
1.65
2.00
correct
2.20
2.42
2) A project has an initial cost of $18,000. The estimated net cash flows of the
project are as follows:
Net Cash Flows
Year 1 $4,000
Year 2 $4,000
Year 3 $6,000
Year 4 $8,000
Year 5 $8,000
What is the project's payback period?
3.0 Years
3.5 Years
correct
3.75 Years
4.0 Years
, 3) Below are some of the accounts that Company F has on their books:
Cash and Cash Equivalents $2,000
Insurance Expense $250
Accounts Payable $800
Prepaid Rent $400
Accounts Receivable $750
Deferred Revenue $1,650
Inventory $925
Which of the amounts below is the correct total of liabilities?
$2,450
correct
$800
$1,650
$2,700
4) What denominator amounts does an analyst use to calculate the common size
balance sheet and income statement?
Current assets and net income, respectively
Total assets and operating income, respectively
Total assets and sales, respectively
correct
Owner's equity and sales, respectively
, 5) A company had the following trial balance on Dec. 31, 2013:
What is the company's net income for 2013?
$45,000
$95,000
correct
$120,000
$170,000
1)
As of Dec. 31, 2013, a company had current assets of $600,000 and current liabilities of
$300,000. Sales of the company are expected to increase by 10 percent for each of the
next two years. If all current assets and current liability accounts increase proportionately
with sales, what would be the projected current ratio of the company on Dec. 31, 2015?
1.65
2.00
correct
2.20
2.42
2) A project has an initial cost of $18,000. The estimated net cash flows of the
project are as follows:
Net Cash Flows
Year 1 $4,000
Year 2 $4,000
Year 3 $6,000
Year 4 $8,000
Year 5 $8,000
What is the project's payback period?
3.0 Years
3.5 Years
correct
3.75 Years
4.0 Years
, 3) Below are some of the accounts that Company F has on their books:
Cash and Cash Equivalents $2,000
Insurance Expense $250
Accounts Payable $800
Prepaid Rent $400
Accounts Receivable $750
Deferred Revenue $1,650
Inventory $925
Which of the amounts below is the correct total of liabilities?
$2,450
correct
$800
$1,650
$2,700
4) What denominator amounts does an analyst use to calculate the common size
balance sheet and income statement?
Current assets and net income, respectively
Total assets and operating income, respectively
Total assets and sales, respectively
correct
Owner's equity and sales, respectively
, 5) A company had the following trial balance on Dec. 31, 2013:
What is the company's net income for 2013?
$45,000
$95,000
correct
$120,000
$170,000
