One objective of the income statement is to separate the results of
continuing operations from those of discontinued operations.
Question 14
All of the following are true regarding financial statement analysis
ratios associated with liabilities except
Question 15
A primary objective of the statement of cash flows is to show the
income or loss on investing and financing transactions.
Question 16
A master budget is most useful in evaluating a manager's performance
in controlling costs.
Question 17
The master budget reflects management's long-term plans
encompassing five years or more.
Question 18
The debt to assets ratio measures the percentage of the total assets
provided by creditors
Question 19
A company whose current liabilities exceed its current assets may have
a liquidity problem.
Question 20
During 2014, Phelps Corporation reported net sales of $3,000,000, net
income of $1,320,000, and depreciation expense of $80,000. Phelps
also reported beginning total assets of $1,000,000, ending total assets
of $1,500,000, plant assets of $800,000, and accumulated depreciation
of $500,000. Phelpsâs asset turnover ratio is