Strayer ACC100 ch018 quiz
Quiz ch018
Question 1
Assume the following sales data for a company:
|
2014 |
$1,050,000 |
|
2013 |
950,000 |
|
2012 |
800,000 |
|
2011 |
650,000 |
If 2011 is the base year, what is the percentage increase in sales from 2011 to
2013?
|
61.5% |
|
46.2% |
|
68.4% |
|
100% |
Question 2
The following information is available forOakland Company:
|
2014 |
2013 |
|
|
Accounts receivable |
$ 430,000 |
$ 460,000 |
|
Inventory |
280,000 |
320,000 |
|
Net credit sales |
2,670,000 |
1,600,000 |
|
Cost of goods sold |
1,860,000 |
1,060,000 |
|
Net income |
300,000 |
170,000 |
The accounts receivable turnover ratio for 2014 is
|
6.0 times. |
|
6.2 times. |
|
5.8 times. |
|
1.4 times. |
Question 3
Swiss Clothing Store had a balance in the Accounts
Receivable account of $920,000 at the beginning of the year and a balance of
$980,000 at the end of the year. Net credit sales during the year amounted to
$6,650,000. The average collection period of the receivables in terms of days
was
|
52.1 days. |
|
50.7 days. |
|
53.7 days. |
|
30 days. |
Question 4
Country Company reported the following on its income statement:
|
Income before income taxes |
$850,000 |
|
Income tax expense |
250,000 |
|
Net income |
$600,000 |
An analysis of the income statement revealed that interest expense was
$100,000. Country Company's times interest earned was
|
6.5 times. |
|
9.5 times. |
|
8.5 times. |
|
3.4 times. |
Question 5
The following information is available forOakland Company:
|
2014 |
2013 |
|
|
Accounts receivable |
$ 360,000 |
$ 400,000 |
|
Inventory |
340,000 |
400,000 |
|
Net credit sales |
2,470,000 |
1,400,000 |
|
Cost of goods sold |
1,850,000 |
1,060,000 |
|
Net income |
300,000 |
170,000 |
The inventory turnover ratio for 2014 is
|
4.6 times. |
|
5.4 times. |
|
6.7 times. |
|
5.0 times. |
Question 6
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Your answer has been saved and sent for grading. See Gradebook for score details. |
The current ratio is
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used to evaluate a company's solvency and long-term debt paying ability. |
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calculated by subtracting current liabilities from current assets. |
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used to evaluate a company's liquidity and short-term debt paying ability. |
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calculated by dividing current liabilities by current assets. |
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Question 7
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Your answer has been saved and sent for grading. See Gradebook for score details. |
The discontinued operations section of the income
statement refers to
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obsolete equipment and discontinued inventory items. |
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discontinuance of a product line. |
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the income or loss on products that have been completed and sold. |
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the disposal of a significant component of a business. |
Question 8
Comparisons of data within a company
are an example of the following comparative basis:
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Intercompany |
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Intracompany |
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Interregional |
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Industry averages |
Question 9
The acid-test ratio
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is a quick calculation of an approximation of the current ratio. |
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does include prepaid expenses as part of the numerator. |
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does not include all current liabilities in the calculation. |
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does not include inventory as part of the numerator. |
Question 10
A weakness of the current ratio is
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that it can be expressed as a percentage, as a rate, or as a proportion. |
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that it is rarely used by sophisticated analysts. |
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the difficulty of the calculation. |
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that it doesn't take into account the composition of the current assets. |
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Solution: Strayer ACC100 week 8 quiz