Mid-term Exam
1. Single-choice question
(1) Which of the following ratios is not generally considered to be helpful in assessing short-term liquidity?
A．Current ratio
B．Acid-test ratio
C．Days collection period
D．Total asset turnover
(2) What accounts are most likely to be found in the stockholders’ equity section ofthe balance sheet?
A．Common stock, short-term debt, preferred stock.
B．Common stock, inventories, additional paid-in capital.
C．Common stock, additional paid-in capital, accrued liabilities.
D．Common stock, additional paid-in capital, retained earnings.
(3) What does the income statement measure for a firm?
A．The change in revenue and cost the occurred during the period
B．The financing and investment activities for a period
C．The results of operations of a period
D．The financial position of a company on a particular date
(4)In the statement of cash flows, which of the following items is included in the operating activities?
A．Borrowing from creditors and repaying the principal
B．Obtaining resources from owners
C．Payment of taxes
D．All of the above
(5) Which options cause the number of shares outstanding to increase and thus
dilute ownership?这选项导致流通股数量增加，从而稀释股权？A．Conversion of debentures . 债券的转换。
B．Warrants exercised. b.行使认股权证。
C．Stock options. C.股票期权
D. All of the above.d.以上所有。
2. Multiple-choice question
(1) Which information can be easily found from the annual report? ( ).
A.Long-term debt.
B.The income statement.
C.Five-year summary of selected financial data.
D.Notes to the financial statements.
(2)According to income statement category, which of the following items appear onthe operating profit?
A. Depreciation expense.
B．Advertising expense
C．Interest expense
D．Selling and administrative expenses
(3) Assuming a period of deflation, which statement is false?
A．The FIFO method understates cost of goods sold on the income statement. B．The FIFO method understates balance sheet inventory.
C．The LIFO method overstates balance sheet inventory.
D．The LIFO method understates cost of goods sold on the income statement.
(4)Which of the following would be classified as long-term debt?
A. Current portion of long-term debt.
..B. Accounts payable.
C．Long-term notes payable.
D. Bonds due in 10 years.
(5) Which of the following is not considered an MD&A?
A．Highlights of any favorable or unfavorable trends.
B．Identification of significant events and uncertainties that affect a company ’s liquidity, capital resources and results of operations.
