Questions from Managerial Accounting

Q: An advantage of common-size analysis is that a

An advantage of common-size analysis is that a. the size of dollar amounts impacts the analysis. b. larger companies will have higher common-size percentages. c. it focuses only on vertical analysis....

Q: Fractions or percentages computed by dividing one account or line-item

Fractions or percentages computed by dividing one account or line-item amount by another are called a. returns. b. industry averages. c. common-size statements. d. dividend yields. e. ratios.

Q: The measures of the ability of a company to meet its current

The measures of the ability of a company to meet its current obligations are called a. ratios. b. liquidity ratios. c. leverage ratios. d. profitability ratios. e. percentage changes.

Q: Austin Porter is a sophomore at a small Midwestern university (SMWU

Austin Porter is a sophomore at a small Midwestern university (SMWU). He is considering whether to continue at this university or to transfer to one with a nationally recognized engineering program. A...

Q: Pedee Company’s inventory turnover in days is 80 days. Which of

Pedee Company’s inventory turnover in days is 80 days. Which of the following actions could help to improve that ratio? a. Increase sales price. b. Increase manufacturing costs. c. Reduce cost of goo...

Q: Etchey Company shows that 46% of its assets are financed by

Etchey Company shows that 46% of its assets are financed by creditors. Which of the following shows this result? a. Current ratio b. Times-interest-earned ratio c. Debt ratio d. Inventory turnover in...

Q: Profitability ratios are used by which of the following groups?

Profitability ratios are used by which of the following groups? a. Company managers b. Creditors c. Lenders d. Investors e. All of these.

Q: Fred and Torrie Jones are a retired couple looking for income.

Fred and Torrie Jones are a retired couple looking for income. They are currently rebalancing their portfolio of stocks to include more with high dividends. Fred and Torrie will be most interested in...

Q: A small pizza restaurant, founded and owned by the Martinelli sisters

A small pizza restaurant, founded and owned by the Martinelli sisters, would be expected to have which of the following? a. Low inventory turnover and high gross margin b. Low accounts receivable tur...

Q: The after-tax cost of interest expense is used in calculating

The after-tax cost of interest expense is used in calculating which of the following? a. Times-interest-earned b. Return on assets c. Debt ratio d. Inventory turnover ratio e. All of these.