Explore BrainMass
Share

# Accounting problems

4) INSTRUCTIONS: Complete each of the following statements by writing the appropriate words or amounts in the Answers column.

0. The percent of current assets to total assets is an example of (type
of analysis)
1. The net income was \$25 per common share for 2007. At the beginning of 2008, the number of shares outstanding was increased because of a 4-for-1 stock split. The earnings per share for 2007, adjusted to place it on a comparable basis with 2008, is
2-3. A company with working capital of \$500,000 and a current ratio of
2 pays a \$80,000 short-term liability.
2. The amount of working capital immediately after the payment is
3. The current ratio immediately after the payment is
4. If the acid-test ratio is 0.9, the receipt of cash from the sale of marketable securities at their book value will cause the ratio to (increase, decrease, not be affected)
5-6. Three types of retail businesses are being compared: (a) jewelry store, (b) bookstore, and (c) grocery supermarket.
5. The type with the lowest inventory turnover is most likely to be
6. The type with the highest rate of gross profit is most likely to be
7. A financial statement in which all items are in relative terms is called a
8. The ability of a business to pay its debts as they come due is referred
to as the factor of
9. The sum of cash, receivables, and marketable securities is sometimes called
10. The tendency of the rate earned on stockholders' equity to vary disproportionately from the rate earned on total assets is sometimes referred to as
11. The ratio of the sum of cash, receivables, and marketable securities to current liabilities is called
12. Working capital is the excess of current assets over
13. The current ratio is computed by dividing current assets by
14-15. Three types of businesses are being compared: (a) grocery supermarket, (b) department store, and (c) telephone company.
14. The type most likely to have the lowest ratio of fixed assets to long-term liabilities is
15. The type most likely to have the highest ratio of liabilities to stockholders' equity is

#### Solution Preview

4) INSTRUCTIONS: Complete each of the following statements by writing the appropriate words or amounts in the Answers column.