46、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted.
An analyst prepared common-size balance sheets for two companies operating in the same industry. The analyst noted that both companies had the same proportion of current liabilities, long-term liabilities, and shareholders' equity, and the following ratios: | Company 1 | Company 2 | Current ratio | 2.0 | 2.0 | Cash ratio | 0.3 | 0.3 | Quick ratio | 0.5 | 0.8 |
The most reasonable conclusion is that, compared with Company 2, Company 1 had a: Select exactly 1 answer(s) from the following: A. higher percentage of assets associated with inventory. B. higher percentage of assets associated with accounts receivable. C. lower percentage of assets associated with marketable securities. D. higher percentage of assets associated with marketable securities.
47、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted.
An analyst gathered the following information for a company: Ratios | 2005 | 2004 | 2003 | Inventory turnover | 5 | 6 | 7 | Total asset turnover | 6 | 5 | 3 | Accounts payable turnover | 9 | 9 | 8 | Accounts receivable turnover | 11 | 12 | 15 |
All other factors being equal, which of the following is the best conclusion with respect to the information above? From 2003 to 2005, the company's: Select exactly 1 answer(s) from the following: A. fixed asset turnover increased. B. credit policies became more strict. C. cash conversion cycle became shorter. D. average inventory processing time decreased.
48、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted. If a company has a current ratio of 2.0, that company's repayment of $150,000 in short-term borrowing obtained from a bank would most likely decrease: Select exactly 1 answer(s) from the following: A. the company's current ratio, but not the company's cash flow from operations. B. the company's cash flow from operations, but not the company's current ratio. C. both the company's current ratio and the company's cash flow from operations. D. neither the company's current ratio nor the company's cash flow from operations.
49、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted. At the end of the year, a company sold equipment for $30,000 cash. The company paid $110,000 for the equipment several years ago and had accumulated depreciation of $70,000 for the equipment at the time of sale. All else equal, the equipment sale will result in the company's cash flow from: Select exactly 1 answer(s) from the following: A. investing activities decreasing by $10,000. B. investing activities increasing by $30,000. C. operating activities being $10,000 less than net income. D. operating activities being $30,000 more than net income.
50、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted. In 2007, a company reported net income of $130 million and cash flow from operations of $120 million. All else equal, the most likely explanation for the difference between net income and cash flow from operations in 2007 is that the company: Select exactly 1 answer(s) from the following: A. tightened credit policies and increased collection efforts during the year. B. purchased new property, plant, and equipment at the beginning of the year. C. sold a long-term investment for an amount equal to book value at the end of the year. D. increased raw materials inventory in anticipation of increased sales at the end of the year.
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发表于 2008-11-5 18:55
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