1. Internal reports that review the actual impact of decisions are prepared by:
• the controller
• department heads
• factory workers
• management accountants
2. Horizontal analysis is also known as:
• trend analysis
• vertical analysis
• linear analysis
• common size analysis
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3. Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?
• most common form of organization
• reduced legal liability for investors
• lower taxes
• harder to transfer ownership
4. Serox stock was selling for $20 two years ago. The stock sold for $25 one year ago, and it is currently selling for $28. Serox pays a $1.10 dividend per year. What was the rate of return for owning Serox in the most recent year? (Round to the nearest percent.)
• 32%
• 16%
• 12%
• 40%
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5. External financing needed: Jockey Company has total assets worth $4,417,665. At year-end it will have net income of $2,771,342 and pay out 60 percent as dividends. If the firm wants no external financing, what is the growth rate it can support?
• 30.3%
• 27.3%
• 32.9%
• 25.1%
6. An unrealistic budget is more likely to result when it:
• has been developed by all levels of management.
• has been developed in a top down fashion.
• has been developed in a bottom up fashion.
• is developed with performance appraisal usages in mind.
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7. Which of the following financial statements is concerned with the company at a point in time?
• balance sheet
• retained earnings statement
• statement of cash flows
• income statement
8. Next year Jenkins Traders will pay a dividend of...