Southwestern ACCT111 Chapter 14 Quiz Latest 2021

ACCT111 Managerial Accounting

Chapter 14 Quiz

Question 1Given the following information:

Cost of goods sold:  $900,000

Beginning Inventory: $140,000

Ending Inventory:  $160,000

What is inventory turnover?

Question 2Given the following information:

Net income:  $150,000

Income tax expense:  $60,000

Interest expense:  $50,000

What is the times interest earned rounded to 1 decimal point?

Question 3Given the following information:

Current liabilities:  $140,000

Long Term debt:  $400,000

Total assets:  $1,200,000

What is the debt to total assets ratio?

Question 4Given the following information:

Net credit sales:  $1,330,000

Beginning A/R:  $180,000

Ending A/R:  $200,000

What is the receivables turnover?

Question 5Given the following information:

Net income:  $150,000

Beginning total assets:  $1,200,000

Ending total assets:  $800,000

What is the return on assets?

Question 6In what category does the acid test ratio fall?

Liquidity

Profitability

Solvency

Question 7 In what category does the profit margin ratio fall?

liquidity

profitability

solvency

Question 8In what category does the asset turnover ratio fall?

liquidity

profitability

solvency

Question 9 In what category does the receivables turnover ratio fall?

liquidity

profitability

solvency

Question 10 The current ratio of Fryman Company is 1.76:1.  What does that mean?