Which one of the following is not a characteristic generally evaluated in ratio analysis?
A loss on disposal of a segment would be reported in the income statement as a(n)
deduction from income from continuing operations
Based on the following data for the current year, what is the number of days’ sales in accounts receivable?
Net sales on account during year
Cost of merchandise sold during year
Accounts receivable, beginning of year
Accounts receivable, end of year
Inventory, beginning of year
Inventory, end of year
An extraordinary item results from
a segment of the business being sold.
corporate income tax being paid.
a change from one accounting method to another acceptable accounting method.
a transaction or event that is unusual and occurs infrequently.
Which of the following is a measure of the liquid position of a corporation?
earnings per share
number of times interest charges earned
Hsu Company reported the following on its income statement:
Income before income taxes
Income tax expense
An analysis of the income statement revealed that interest expense was $80,000. Hsu Company’s times interest earned was
What is the price earnings ratio for this company? Round your answer to one decimal point.
A company that is leveraged is one that
contains debt financing.
contains equity financing.
has a high current ratio.
has a high earnings per share.
Which of the following is required by the Sarbanes-Oxley Act of 2002?
A price-earnings ratio.
A report on internal control.
A vertical analysis.
A common-sized statement.
Horizontal analysis of comparative financial statements includes the
development of common size statements.
calculation of liquidity ratios.
calculation of dollar amount changes and percentage changes from the previous to the current year.
evaluation of financial statement data