Questions from Financial Accounting

Q: For each ratio listed, identify whether the change in ratio value

For each ratio listed, identify whether the change in ratio value from the prior year to the current year is usually regarded as favorable or unfavorable.

Q: Following is information for Morgan Company and Parker Company, which are

Following is information for Morgan Company and Parker Company, which are similar firms operating in the same industry. 1. Based on current ratio and acid-test ratio, which company appears better posi...

Q: Which of the following gains or losses would Organic Foods account for

Which of the following gains or losses would Organic Foods account for as unusual and/or infrequent? a. A hurricane destroys rainwater tanks that result in a loss for Organic Foods. b. The used vehicl...

Q: Wipfli Co. provides auditing services and consulting services. Wipfli sells

Wipfli Co. provides auditing services and consulting services. Wipfli sells the consulting services segment for a gain of $75,000 (net of tax). Income from consulting services during the year is $20,0...

Q: Match the ratio to the building block of financial statement analysis to

Match the ratio to the building block of financial statement analysis to which it best relates. A. Liquidity and efficiency B. Solvency C. Profitability D. Market prospects 1. Equity ratio 2...

Q: Otto Co. borrows money on April 30, 2021, by

Otto Co. borrows money on April 30, 2021, by promising to make four payments of $13,000 each on November 1, 2021; May 1, 2022; November 1, 2022; and May 1, 2023. 1. How much money is Otto able to borr...

Q: Identify which standard of comparison, (a) intracompany, (

Identify which standard of comparison, (a) intracompany, (b) competitor, (c) industry, or (d) guidelines, best describes each of the following examples. 1. Compare Ford’s return on assets to GM’s retu...

Q: Identify which of the following six metrics a through f best completes

Identify which of the following six metrics a through f best completes questions 1 through 3. a. Days’ sales uncollected b. Accounts receivable turnover c. Working capital d. Return on total assets e....

Q: Compute trend percents for the following accounts using 2016 as the base

Compute trend percents for the following accounts using 2016 as the base year. For each of the three accounts, state whether the situation as revealed by the trend percents appears to be favorable or...

Q: Compute common-size percents for the following comparative income statements (

Compute common-size percents for the following comparative income statements (round percents to one decimal). Using the common-size percents, which item is most responsible for the decline in net inco...