Homework Answers
1) D
The debt to asset ratio is a LEVERAGE RATIO which indicates that the percentage of assets being financed by debt funds.The increase in this ratio will lead to financial risk for the company.
2) B
Free cash flows shows the efficiency of the company to generate cash .it helps to determine tejehe financial perfomance of the company. it heps the company to pay off creditors, dividend and other interest to shareholder.
3) B
The Securities and exchange commission (SEC) issues accounting standards for firms outside united states
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QUESTION 24 The debt to assets ratio is a A. liquidity ratio O B. profitability ratio...
QUESTION 25 Free cash flow provides an indication of a company's ability to O A. generate...
QUESTION 25 Free cash flow provides an indication of a company's ability to O A. generate cash to invest in new capital expenditures OB.generate cash to pay dividends OC. generate cash to invest in new capital expenditures and to pay dividends. OD.generate net income QUESTION 26 Which of the following organizations issues accounting standards for countries outside the United States? O A. GAAP B. SEC OC. FASB OD. IASB QUESTION 27 Generally accepted accounting principles Aare cnund in thenry but...
QUESTION 23 Long-term creditors are usually most interested in evaluating O A. consistency and profitability O...
QUESTION 23 Long-term creditors are usually most interested in evaluating O A. consistency and profitability O B. liquidity and profitability OC. liquidity and solvency OD. consistency and solvency QUESTION 24 The debt to assets ratio is a O A. liquidity ratio O B. profitability ratio OC. solvency ratio D. None of the answer choices is correct A measure of profitability is the O A. earnings per share OB. debt to assets ratio O C. current ratio O D.working capital
QUESTION 7 The PE ratio and market-to-book ratio are indicators of O profitability of the firm...
QUESTION 7 The PE ratio and market-to-book ratio are indicators of O profitability of the firm liquidity of the firm how effectively the firm manages assets to generate sales investor sentiment towards the firm
A company's gearing ratio could be used to assess its Select one: a. Profitability b. Long-term...
A company's gearing ratio could be used to assess its Select one: a. Profitability b. Long-term solvency and stability c. Short-term liquidity d. Working capital efficiency
QUESTION 36 hich of the following is false related to accounting standard setting? A. The FASB...
QUESTION 36 hich of the following is false related to accounting standard setting? A. The FASB Codification created the new GAAP that we use today. B. The EITF reduces the risk of scandals by addressing emerging issues in financial reporting and providing guidance. C. The SEC could allow the IASB to set US accounting standards. D. Due process refers to the process whereby the FASB solicits feedback from various constituents prior to the rules being finalized.
Exercise 128 Use the following data to calculate the liquidity and profitability ratios listed below. Average...
Exercise 128 Use the following data to calculate the liquidity and profitability ratios listed below. Average common shares outstanding Capital expenditures Cash provided by operating activities Dividends paid Current assets 10,000 Current liabilities $20,000 Net income 32,000 Net sales 5,000 Total liabilities 190,000 Total assets $100,000 21,000 150,000 126,000 210,000 Compute the following: (Round current ratio to I decimal places, e.g. 1.5:1 and earnings per share to 2 decimal places, e.g. $2.51.) (a) Current ratio (b) Working capital (c) Earnings...
Possible Answers: Match each term or phrase to its description below. Liquidity Whether an item is...
Possible Answers:
Match each term or phrase to its description below. Liquidity Whether an item is large enough to likely influence the decision of an investor or creditor. Constraint that weighs the cost that companies will incur to provide the information against the benefit that financial statement users will gain from having the information available. Obligations that a company expects to pay within the next year or operating cycle, whichever is longer. Information that is complete, neutral, and free from...
QUESTION 26 Which of the following organizations issues accounting standards for countries outside the United States?...
QUESTION 26 Which of the following organizations issues accounting standards for countries outside the United States? A. GAAP OB. SEC OC. FASB O DIASB QUESTION 27 Generally accepted accounting principles A. are sound in theory but rarely used in real life. OB. are accounting rules formulated by the Internal Revenue Service. C. have eliminated all errors in accounting, D. are accounting rules that are recognized as a general guide for financial reporting. QUESTION 28 The agency of the United States...
Which of the following is a benefit of the convergence between US GAAP and IFRS? Group...
Which of the following is a benefit of the convergence between US GAAP and IFRS? Group of answer choices B. All companies now have a choice between different sets of financial reporting standards C. The IASB and FASB use the exact same conceptual framework to generate accounting standards D. All companies will produce financial statements in English A. Increased comparability between financial statements produced in different countries As a result of the convergence efforts since 2007: Group of answer choices...
Question Completion Status: QUESTION 33 Which of the following is false related to accounting standard setting?...
Question Completion Status: QUESTION 33 Which of the following is false related to accounting standard setting? A The FASB Codification created the new GAAP that we use today, B. The EITF reduces the risk of scandals by addressing emerging issues in financial reporting and providing guidance. C. The SEC could allow the IASB to set US accounting standards. D. Due process refers to the process whereby the FASB solicits feedback from various constituents prior to the rules being finalized. QUESTION...
QUESTION 25 Free cash flow provides an indication of a company's ability to O A. generate cash to invest in new capital expenditures OB.generate cash to pay dividends OC. generate cash to invest in new capital expenditures and to pay dividends. OD.generate net income QUESTION 26 Which of the following organizations issues accounting standards for countries outside the United States? O A. GAAP B. SEC OC. FASB OD. IASB QUESTION 27 Generally accepted accounting principles Aare cnund in thenry but...
QUESTION 23 Long-term creditors are usually most interested in evaluating O A. consistency and profitability O B. liquidity and profitability OC. liquidity and solvency OD. consistency and solvency QUESTION 24 The debt to assets ratio is a O A. liquidity ratio O B. profitability ratio OC. solvency ratio D. None of the answer choices is correct A measure of profitability is the O A. earnings per share OB. debt to assets ratio O C. current ratio O D.working capital
QUESTION 7 The PE ratio and market-to-book ratio are indicators of O profitability of the firm liquidity of the firm how effectively the firm manages assets to generate sales investor sentiment towards the firm
A company's gearing ratio could be used to assess its Select one: a. Profitability b. Long-term solvency and stability c. Short-term liquidity d. Working capital efficiency
QUESTION 36 hich of the following is false related to accounting standard setting? A. The FASB Codification created the new GAAP that we use today. B. The EITF reduces the risk of scandals by addressing emerging issues in financial reporting and providing guidance. C. The SEC could allow the IASB to set US accounting standards. D. Due process refers to the process whereby the FASB solicits feedback from various constituents prior to the rules being finalized.
Exercise 128 Use the following data to calculate the liquidity and profitability ratios listed below. Average common shares outstanding Capital expenditures Cash provided by operating activities Dividends paid Current assets 10,000 Current liabilities $20,000 Net income 32,000 Net sales 5,000 Total liabilities 190,000 Total assets $100,000 21,000 150,000 126,000 210,000 Compute the following: (Round current ratio to I decimal places, e.g. 1.5:1 and earnings per share to 2 decimal places, e.g. $2.51.) (a) Current ratio (b) Working capital (c) Earnings...
Possible Answers:
Match each term or phrase to its description below. Liquidity Whether an item is large enough to likely influence the decision of an investor or creditor. Constraint that weighs the cost that companies will incur to provide the information against the benefit that financial statement users will gain from having the information available. Obligations that a company expects to pay within the next year or operating cycle, whichever is longer. Information that is complete, neutral, and free from...
QUESTION 26 Which of the following organizations issues accounting standards for countries outside the United States? A. GAAP OB. SEC OC. FASB O DIASB QUESTION 27 Generally accepted accounting principles A. are sound in theory but rarely used in real life. OB. are accounting rules formulated by the Internal Revenue Service. C. have eliminated all errors in accounting, D. are accounting rules that are recognized as a general guide for financial reporting. QUESTION 28 The agency of the United States...
Question Completion Status: QUESTION 33 Which of the following is false related to accounting standard setting? A The FASB Codification created the new GAAP that we use today, B. The EITF reduces the risk of scandals by addressing emerging issues in financial reporting and providing guidance. C. The SEC could allow the IASB to set US accounting standards. D. Due process refers to the process whereby the FASB solicits feedback from various constituents prior to the rules being finalized. QUESTION...
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