Manac Quiz 2 With Answers
Manac Quiz 2 With Answers
Manac Quiz 2 With Answers
THEORIES
given
industry
without
respect to relative size.
d. Ascertain the relative potential of
companies of similar size in
different industries.
into
an
operating
lease.
The
company's debt ratio as measured by
the balance sheet will
a. Increase whether the assets are
purchased or leased.
b. Increase if the assets are
purchased,
and
remain
unchanged if the assets are
leased.
c. Increase
if
the
assets
are
purchased, and decrease if the
assets are leased.
d. Remain unchanged whether the
assets are purchased or leased.
In a single-period
income statement, the
(100%) is normally the
a. Gross sales
c. Net
b. Net sales
sales
common-size
base amount
cash sales
d. Net credit
a. An
increase
in
a
firms
inventories
will
call
for
additional financing unless
the increase is offset by an
equal or larger decrease in
some other asset account.
b. A high quick ratio is always a
good indication of a well-managed
liquidity position.
c. A relatively low return on assets
(ROA) is always an indicator of
managerial incompetence.
d. A high degree of operating
leverage lowers the risk by
stabilizing the firms earnings
stream.
13. The ratio that measures a firm's
ability to generate earnings from its
resources is
a. Days' sales in inventory.
b. Days' sales in receivables.
c. Sales to working capital.
d. Asset turnover.
14. Planners have determined that sales
will increase by 25% next year, and
that the profit margin will remain at
15% of sales. Which of the following
statements is correct?
a. Profit will grow by 25%.
b. The profit margin will grow by
15%.
c. Profit will grow proportionately
faster than sales.
d. Ten percent of the increase in
sales will become net income.
15. Which one of the following ratios
would provide a best measure of
liquidity?
a. Sales minus returns to total debt.
b. Total assets minus goodwill to
total equity.
c. Current
assets
minus
inventories
to
current
liabilities.
d. Net profit minus dividends to
interest expense.
II.
PROBLEMS
Solution
P 60,000
?
?
252,000
Total Assets
P 480,000
LIAB. & STOCKHOLDERS EQUITY
Accounts payable
P
?
Current notes payable
40,000
Long-term payable
?
Common stock
140,000
Retained earnings
?
Total L & SHE
P 480,000
Additional information:
Current ratio (as of Dec. 1.9 to
31, 2014)
1
Ratio of total liabilities to 1.4
total stockholders equity
Inventory turnover based
15
on sales and ending
times
inventory
Inventory turnover based 10
on cost of goods sold times
and ending inventory
Gross margin for 2014
P500,0
00
1. The balance of accounts payable of
San Matias as of December 31, 2014
is P80,000
2. The balance of retained earnings of
San Matias as of December 31, 2014
is P60,000
3. The balance of inventory of San
Matias as of December 31, 2014 is
P100,000
Companys land
account
decreased
by
P90,000
because of a cash sale for the same
amount. Its equipment account
increased by P40,000 as a result of a
cash purchase, and its bonds payable
increased by P35,000 due to an
issuance for cash at face value. How
much is the net cash provided/used
by investing activities? 50,000
Sale of equipment
90,000
Acquisition of equipment
(40,000)
Net cash provided in investing
50,000