Question 1

What is a balance sheet? Why is it called a balance sheet?

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Question 2

Obtain the financial statements of a public company of your choice.Conduct a ratio analysis to determine the leverage ratios of the company.Comment on the company's growth potential and risk based on your analysis.

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Question 3

What is GAAP?

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Question 4

A reduction in a manufacturer's inventory turnover ratio is likely to indicate that the ________.

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A)A decline in a manufacturer's inventory turnover ratio would indicate that sales are slowing down, or it could mean sales are steady but the company made some forecasting errors and as a result produced more goods than it needed.
B)A decline in a manufacturer's inventory turnover ratio would indicate that sales are slowing down, or it could mean sales are steady but the company made some forecasting errors and as a result produced more goods than it needed.
C)A decline in a manufacturer's inventory turnover ratio would indicate that sales are slowing down, or it could mean sales are steady but the company made some forecasting errors and as a result produced more goods than it needed.
D)A decline in a manufacturer's inventory turnover ratio would indicate that sales are slowing down, or it could mean sales are steady but the company made some forecasting errors and as a result produced more goods than it needed.
E)A decline in a manufacturer's inventory turnover ratio would indicate that sales are slowing down, or it could mean sales are steady but the company made some forecasting errors and as a result produced more goods than it needed.

Question 5

Analyze the major postulates of the international financial reporting standards and conduct a class discussion on its relevance.

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Question 6

Briefly explain trend analysis.

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Question 7

Select a manufacturing industry of your choice.Conduct a ratio analysis of three major firms in the industry to determine and compare the activity ratios in the industry.Analyze the results that you have calculated.

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Question 8

Compare and contrast accrual basis accounting and cash basis accounting.

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Question 9

Explain the significance of the income statement of a business.

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Question 10

Compare and contrast public accountants and private accountants.

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Question 11

Describe the major provisions of the Sarbanes-Oxley Act.

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Question 12

Which of the following is a leverage ratio?

Accepted Answer

A)A company's ability to pay its long-term debts is reflected in its leverage ratios. Debt-to-equity ratio is a leverage ratio.
B)A company's ability to pay its long-term debts is reflected in its leverage ratios. Debt-to-equity ratio is a leverage ratio.
C)A company's ability to pay its long-term debts is reflected in its leverage ratios. Debt-to-equity ratio is a leverage ratio.
D)A company's ability to pay its long-term debts is reflected in its leverage ratios. Debt-to-equity ratio is a leverage ratio.
E)A company's ability to pay its long-term debts is reflected in its leverage ratios. Debt-to-equity ratio is a leverage ratio.

Question 13

Describe double-entry bookkeeping and the matching principle.

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Question 14

Compare and contrast quick ratio and current ratio.Which one do you think is more accurate?

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Question 15

Explain how private accountants function.

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Question 16

Compare and contrast different types of financial ratios.

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Question 17

Describe cost of goods sold and operating expenses.

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Question 18

Compare and contrast management accounting with financial accounting.

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Question 19

Total liabilities divided by total assets will yield the ________ ratio.

Accepted Answer

A)Debt-to-assets ratio is a measure of a firm's ability to carry long-term debt, calculated by dividing total liabilities by total assets.
B)Debt-to-assets ratio is a measure of a firm's ability to carry long-term debt, calculated by dividing total liabilities by total assets.
C)Debt-to-assets ratio is a measure of a firm's ability to carry long-term debt, calculated by dividing total liabilities by total assets.
D)Debt-to-assets ratio is a measure of a firm's ability to carry long-term debt, calculated by dividing total liabilities by total assets.
E)Debt-to-assets ratio is a measure of a firm's ability to carry long-term debt, calculated by dividing total liabilities by total assets.

Question 20

Leverage ratios indicate ________.

Accepted Answer

A)A company's ability to pay its long-term debts is reflected in its leverage ratios, also known as debt ratios.
B)A company's ability to pay its long-term debts is reflected in its leverage ratios, also known as debt ratios.
C)A company's ability to pay its long-term debts is reflected in its leverage ratios, also known as debt ratios.
D)A company's ability to pay its long-term debts is reflected in its leverage ratios, also known as debt ratios.
E)A company's ability to pay its long-term debts is reflected in its leverage ratios, also known as debt ratios.

Quiz 17: Financial Information and Accounting Concepts