ATLS ECONOMICS EXAM ONE: PRE-TESTS & POST-TESTS REVIEW FINAL REVIEW Chapters- 15,16,17 Questions And Answers 2023 Update

If a company abandons a segment of its operation, the loss would be reported on the:- Correct Answer-income statement immediately after income from continuing operations A company that is leveraged is one that:-Correct Answer-contains debt financing _____ is the use of debt to finance a company or increase the return on an investment:- Correct Answer-leverage The number of times interest charges are earned is computed as:-Correct Answer- [(income, before income tax) + (interest expense)] / (interest expense) The formula used to calculate inventory turnover is:-Correct Answer-(cost of goods sold) / (average inventory) Which of the following clarifies information presented in the financial statements, as well as expands upon it where additional detail is needed? (a) Report on fairness of financial statement (b) Management discussion and analysis section (c) President's state of the company report (d) Report on adequacy of internal control-Correct Answer-Management discussion and analysis section Where is a gain or loss from discontinued operations reported in the financial statements:-Correct Answer-immediately following income from continuing operations on the income statement A change from straight-line depreciation to double-declining balance depreciation would be reported as:-Correct Answer-a prospective change in estimate An analysis in which all the components of a balance sheet are expressed as a percentage of total assets is called ______ analysis-Correct Answer-vertical analysis Corporate annual reports typically do NOT contain which of the following: (a) Auditor's report (b) Next year's budget