Financial Accounting Ivy Software QUESTIONS WITH ANSWERS,

Financial Accounting Ivy Software |\ |\ |\ |\




QUESTIONS WITH ANSWERS |\ |\




From a bankers perspective, the most important ratio on the
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customers financial statement is - CORRECT ANSWERS |\ |\ |\ |\ |\ |\ |\


✔✔Current Ratio |\




Which of the following is an operating performance ratio?
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Debt to total assets
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Times interest earned |\ |\




Payout ratio |\




Times interest earned and payout ratio
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None - CORRECT ANSWERS ✔✔Times interest earned and Payout
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Ratio


Horizontal analysis compares the components of a balance sheet
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with a base item. T/F - CORRECT ANSWERS ✔✔False
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Since companies have different numbers of shares outstanding, it
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is not useful to compare earnings per share ratios. T/F -
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CORRECT ANSWERS ✔✔True |\ |\




There are two ratios that help define the operating cycle. They
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are:

,receivables and inventory turnover |\ |\ |\




receivables and accounts payable |\ |\ |\




inventory and accounts payable turnover|\ |\ |\ |\




none of these - CORRECT ANSWERS ✔✔Receivables and accounts
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payable
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The ratio that shows the markup in price over the cost of goods
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sold is
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profit margins
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gross margin ratio
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return on assets |\ |\




asset turnover
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none - CORRECT ANSWERS ✔✔Gross margin ratio
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The ratio that shows how investors value the stock is
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payout ratio |\




earnings per share |\ |\




return on equity |\ |\




return on assets |\ |\

, none - CORRECT ANSWERS ✔✔None
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Financial strength ratios are utilized to help predict the long-run
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solvency of a company. T/F - CORRECT ANSWERS ✔✔True
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Ratio analysis is popular because ratios:
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summarize important info |\ |\




are useful in comparisons within a company over time
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are useful in comparisons with other companies
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all the above - CORRECT ANSWERS ✔✔All the above
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ROE shows how much income was earned for every dollar
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invested by owners. T/F - CORRECT ANSWERS ✔✔True
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A company's annual report is used primarily by the taxing
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authorities. T/F - CORRECT ANSWERS ✔✔True |\ |\ |\ |\ |\




Managerial accounting is involved in: |\ |\ |\ |\




external reports |\




internal reports |\