Accounting Questions

QUESTION 1

1. ABC, Inc., has a market-to-book ratio of 3, net income of $87,660, a book value per share of $17.2, and 44,871 shares of stock outstanding. What is the price-earnings ratio?

Enter your answer rounded off to two decimal points.

1 points

QUESTION 2

1. ABC has total sales of $208, assets of $102, return on equity of 26%, and net profit margin of 8%. What is the debt ratio?

Enter you answer in percentages rounded off to two decimal points. Do not enter % in the answer box.

1 points

QUESTION 3

1. A firm has sales of $350,000, a profit margin of 6 percent, a total asset turnover rate of 1.25, and an equity multiplier of 1.4. What is the return on equity?

		10.50 percent
		7.50 percent
		7.75 percent
		11.11 percent
		5.36 percent

1 points

QUESTION 4

1. Toast and Butter, Inc., has total assets of $712,000 and an equity multiplier of 1.6. What is the debt-equity ratio?

		0.60
		0.67
		0.63
		1.60
		1.67

1 points

QUESTION 5

1. XYZ earned a net profit margin of 5.9% last year and had an equity multiplier of 2.8. If its total assets are $112 million and its sales are 143 million, what is the firm's debt ratio?

Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.

1 points

QUESTION 6

1. ABC's Balance Sheet lists Current Assets of $300, Current Liabilities of $200, Fixed Assets of $700, Long-Term Debt of $400. ABC has 200 shares outstanding. What is the market-to-book ratio (MTB) if the market price per share is $8?

		4 times
		400 times
		2 times
		8 times
		0.25 times

1 points

QUESTION 7

1. ABC Corporation has the following ratios: Total Asset Turnover= 1.6 Total debt to total assets= 0.5 Current Ratio= 1.7 Current Liabilities= $2,000,000 Sales = $16,000,000 What is the amount of current assets?

		2,000,000
		3,200,000
		3,400,000
		1,000,000

1 points

QUESTION 8

1. The Jamestown Group has equity of $421,000, sales of $792,000, and a profit margin of 6 percent. What is the return on equity?

		8.87 percent
		6.19 percent
		11.29 percent
		10.27 percent
		9.37 percent

1 points

QUESTION 9

1. If the Debt/Equity Ratio is 0.80. What is the Debt Ratio?

		0.40
		0.375
		0.60
		1
		o.4444

1 points

QUESTION 10

1. If the debt ratio is 0.20, the Equity Multiplier is:

		1.25
		0.25
		1.20
		0.20
		0.80
		1.5

1 points

QUESTION 11

1. If the debt ratio is 0.75, the Debt/Equity Ratio is:

		0.75
		0.25
		1
		5
		1.75
		3

1 points

QUESTION 12

1. Top Sound, Inc., has total assets of $212,000, a debt-equity ratio of .6, and net income of $9,500. What is the return on equity?

		6.87 percent
		7.17 percent
		7.34 percent
		7.50 percent
		7.67 percent

1 points

QUESTION 13

1. Blackstone, Inc., has net income of $8,171, a tax rate of 27%, and interest expense of $531. What is the times interest earned ratio?

Enter your answer rounded off to two decimal points.

1 points

QUESTION 14

1. If Roten, Inc., has a equity multiplier of 1.75, total asset turnover of 1.30, and profit margin of 8.5 percent, what is the return on equity (ROE)?

		19.34%
		2.275%
		1.75%
		14.875%

1 points

QUESTION 15

1. If the Debt/Equity Ratio is 0.50. What is the Debt Ratio?

		0.50
		0.375
		0.60
		1
		o.3333

1 points

QUESTION 16

1. If the Debt/Equity Ratio is 0.60. What is the Debt Ratio?

		0.40
		0.375
		0.60
		1
		o.4444

1 points

QUESTION 17

1. If the debt ratio is 0.60, the Debt/Equity Ratio is:

		1.25
		0.25
		1.20
		0.20
		0.80
		1.5

1 points

QUESTION 18

1. If the debt ratio is 0.80, the Equity Multiplier is:

		0.8
		0.2
		1
		5
		1.8
		4

1 points

QUESTION 19

1. A firm has total assets of $682,000 and total equity of $424,000. What is the debt-equity ratio?

		1.61
		0.61
		1.64
		0.62

1 points

QUESTION 20

1. XYZ has total sales of $210, assets of $104, return on equity of 21%, and net profit margin of 6%. What is the amount of equity?

Enter you answer rounded off to two decimal points. Do not enter $ in the answer box.

1 points

QUESTION 21

1. ABC's balance sheet indicates a book value of shareholders' equity of $895,135. The firm's earning per share are $3.6 and the price-earnings ratio is 10.87. If there are 55,391 shares outstanding, what is the book value per share?

Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.

Hint: Market value per share is same as market price per share

1 points

QUESTION 22

1. ABC earned a net profit margin of 6.6% last year and had an equity multiplier of 3. If its total assets are $118 million and its sales are 138 million, what is the firm's return on equity?

Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.

1 points

QUESTION 23

1. XYZ earned a net profit margin of 4.2% last year and had an equity multiplier of 2.3. If its total assets are $99 million and its sales are 182 million, what is the firm's return on assets?

Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.

1 points

QUESTION 24

1. ABC's balance sheet indicates a book value of shareholders' equity of $858,655. The firm's earning per share are $3.5 and the price-earnings ratio is 9.41. If there are 49,308 shares outstanding, what is the market-to-book ratio?

Enter your answer rounded off to two decimal points.

Hint: Market value per share is same as market price per share

1 points

QUESTION 25

1. A firm has net working capital of $1,100 and current liabilities of $2,800. What is the current ratio?

		.98
		2.56
		.39
		.72
		1.39

1 points

QUESTION 26

1. ABC's balance sheet indicates a book value of shareholders' equity of $781,785. The firm's earning per share are $3.2 and the price-earnings ratio is 12.36. If there are 45,263 shares outstanding, what is the market value per share?

Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.

Hint: Market value per share is same as market price per share.

1 points

QUESTION 27

1. Wexford Hotels has sales of $289,600, depreciation of $21,400, interest of $1,300, Operating Income of $23,269.70, and a tax rate of 34 percent. What is the times interest earned ratio?

		20
		17.9
		18.5
		16
		19.8

1 points

QUESTION 28

1. The ability of the firm to pay off short-term obligations as they come due is indicated by:

		My Grade Point Average
		Turnover Ratios
		Liquidity Ratios
		Profitability Ratios

1 points

QUESTION 29

1. A firm has total equity of $70,312.50, a profit margin of 8 percent, an equity multiplier of 1.6, and a total asset turnover of 1.3. What is the amount of the firm s sales?

		$91,406
		$112,500
		$121,500
		$137,500
		$146,250

1 points

QUESTION 30

1. Smith Corporation has current assets of $11,400, inventories of $4,000, and a current ratio of 2.6. What is Smith s acid test ratio? Assume pre-paid expenses is zero.

		1.69
		0.54
		0.74
		1.35

1 points

QUESTION 31

1. The Baker s Dozen has current liabilities of $5,600, net working capital of $2,100, inventory of $3,900, and sales of $13,500. What is the quick ratio? Assume pre-paid expenses are zero.

		0.68
		0.70
		1.38
		1.47
		2.08