1, The practices and procedures used in preparing financial records

1, The practices and procedures used in preparing financial records and reports is known as
2, ______ provide a financial summary of the firm's financial position at a given point in time.
Balance sheet
3, The statement of cash flows summaries each of the following types of cash flows, except:
Projected cash flow
4, The process of evaluating a firm's financial performance over time is called:
Time series analysis
5, Springfield Medical Devices, Inc., has a current assets valued at $15 million, inventory at $12 million,
and current liabilities valued at $6 million. The cost of goods sold was $60 million. Based on this
information, its current ratio is:
2.5 = 15/6
6, _______ ratios measure the speed with which one can convert assets into cash.
7, The modified DuPont system of financial statement analysis assesses return on equity in terms of all of
the following, except:
Retained earnings
8, Which of the following is the smallest?
Net profit margin
9, In a common-size income statement, each item is expressed as a percentage of:
10, As a firm's sales and earnings increase, which of the following will decline?
Price /earnings ratio
11, Springfield Medical Devices, Inc., has earnings before interest and taxes of $500,000, lease payments
of $200,000, dividend payments of $75,000, and interest expenses of $150,000. The company has not
made principal payments back to its shareholders during the past year and there are not preferred
shareholders. What is its fixed-payment coverage ratio?
2.00 = [($500,000 + 200,000) / (150,000 + 200,000)]
12, The Sarbanes-Oxley Act of 2002 created the ____________ to act as a watchdog over accounting
Public Company Accounting Oversight Board