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1. All of the following are examples of money-market investments EXCEPT a) money-market funds. b) term...

1. All of the following are examples of money-market investments EXCEPT a) money-market funds. b) term deposits. c) treasury

7. Earnings per share is calculated a) only for common shares. b) only for preferred shares. c) for common and preferred shar

14. Pine Hardware Store had net credit sales of $3,900,000 and cost of goods sold of $3,000,000 for the year. The Accounts Re

1. All of the following are examples of money-market investments EXCEPT a) money-market funds. b) term deposits. c) treasury bills. d) shares of a privately held corporation. 2. Under the equity method of accounting for long-term investments in common shares, when a dividend is received from the investee company, a) the Dividend Revenue account is credited. b) the Investment in Associate account is increased. c) the Investment in Associate account is decreased. d) no entry is necessary 3. If a company acquires a 40% common share interest in another company, a) the equity method is usually applicable. b) all influence is classified as controlling c) the cost method is always applicable d) the ability to exert significant influence over the activities of the investee does not exist 4. Short-term debt investments are most likely listed on the balance sheet immediately below a) cash b) inventory c) accounts receivable. d) prepaid expenses 5. Lancaster Landscaping Limited reported the following on its income statement: Profit before income taxes $560,000 Income tax expense 140.000 Profit $420.000 An analysis of the income statement revealed that interest expense was $40,000. Lancaster's interest coverage ratio was a) 15 times b) 14 times c) 10.5 times. d) 11.5 times. 6) Companies generally purchase investments in debt and equity securities a) to generate a return on excess cash until needed. b) to generate investment income. c) to meet strategic goals. d) all of the above
7. Earnings per share is calculated a) only for common shares. b) only for preferred shares. c) for common and preferred shares. d) only for bonds. 8. Which of the following is NOT commonly used as a tool of analysis? a) productive capacity analysis b) vertical analysis c) horizontal analysis d) ratio analysis 9. Which one of the following is NOT a characteristic generally evaluated in analyzing financial statements? a) liquidity b) profitability c) marketability d) solvency 10. Short-term creditors are usually most interested in evaluating a) solvency b) liquidity c) marketability d) profitability 11. Comparisons of financial data made within a company are called a) intracompany comparisons. b) interior comparisons, c) intercompany comparisons. d) intramural comparisons 12. Horizontal analysis is used mainly in a) linear analysis. b) intercompany analysis. c) common size analysis. d) intracompany analysis. 13. Lovely Things Boutique reported revenue of $500,000 in 2017 and $446,500 in 2016. The horizontal percentage change from 2016 to 2017 is a) 9% b) 10% c) 11% d) 12%
14. Pine Hardware Store had net credit sales of $3,900,000 and cost of goods sold of $3,000,000 for the year. The Accounts Receivable balances at the beginning and end of the year were $600,000 and $700,000, respectively. The receivables turnover ratio was a) 5.6 times. b) 6.5 times c) 4.6 times d) 6 times. 15. The equity method is used when the investor a) makes long-term investments in bonds. b) makes a short-term investment in common shares. c) has no significant influence over the associate. d) has significant influence over the associate
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Answer #1

Answer for the questions are :

  1. (d)Shares of a privately held corporation.
  2. (a)The Dividend Revenue Account is credited.
  3. (d)The ability to exert significant influence over the activities of the investee does not exist.
  4. (a)Cash.
  5. (b)14 Times.
  6. (d)All of the above.
  7. (a)Only for common shares.
  8. (a)Productive capacity analysis.
  9. (c)Marketability.
  10. (b)Liquidity.
  11. (a)Intracompany comparisons.
  12. (d)Intracompany analysis.
  13. (d)12%.
  14. (d)6 Times.
  15. (d)Has significant influence over the associate.
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