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Accounting Analytics

This document contains a 10 question multiple choice quiz on accounting analytics topics such as de-levered net income, inventory turnover, days turnover ratios, the quick ratio, Beneish M-Score, Benford's Law, discretionary accruals, who discovered Benford's Law, actions that decrease earnings, and assets subject to write-downs under the lower-of-cost-or-market principle. The questions cover a range of accounting concepts and require calculations, data analysis, and identifying key figures and ratios.

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Hari priya
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667 views

Accounting Analytics

This document contains a 10 question multiple choice quiz on accounting analytics topics such as de-levered net income, inventory turnover, days turnover ratios, the quick ratio, Beneish M-Score, Benford's Law, discretionary accruals, who discovered Benford's Law, actions that decrease earnings, and assets subject to write-downs under the lower-of-cost-or-market principle. The questions cover a range of accounting concepts and require calculations, data analysis, and identifying key figures and ratios.

Uploaded by

Hari priya
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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USN No: CMS20MBA062

IISemesterMBA – May 2021


Course Title: Accounting Analytics
Duration: 45Mins Date: 31 May 2021
Max Marks: 20
Note: 1. Answer all the questions.
2. Each question carries 1 mark unless stated otherwise
3. No negative marks

1.De-levered Net income is used to

a). calculate financial leverage

b). remove the financing effects on ROA computation

c). Return on Sales

d). Compute effective tax rate

2. What is Inventory Turnover?

a). Sales / Cost of goods sold

b). Cost of goods sold / average inventory

3. cost of goods sold / accounts receivable

4. Sales – Cost of good sold

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3. Given below are the Ratios for a period. Pick the Day Turnover Ratios and Net Trade Cycle

(4 Marks)

Asset Turnover Ratios Period 3


Accounts Receivable Turnover 240.00
Inventory Turnover 5.00
Accounts Payable Turnover 11.50
Fixed Asset Turnover 6.00

Days Turnover Ratios


Days Receivables 1.52
Days Inventory 73.00
Days Payables 31.74
Net Trade Cycle 42.78

a) 1.4, 71.3, 31.74, 42

b) 1.52, 71.3, 31.8, 43

c) 1.52, 73, 31.74, 42.78

d) 1.52, 73, 31.5, 42.5

4. What is Quick ratio

a). Current Assets / current liabilities

b). (Cash + Receivables) / Current Assets

c). CFO / Average Current liabilities

d). (Cash + Receivables) / Current liabilities

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5.Which of the following companies are potential manipulators according to the Beneish M-Score?
(check all that apply) (4 Marks)

Company M-Score

ArcanineInc -0.51

Growlithe Ltd -2.63

Houndoom
-1.42
Co

Lillipup Corp -3.19

Smeargle Pty -1.98

a) Lillipup Corp

b) Houndoom Co

c) Smeargle Pty

d) ArcanineInc

e) Growlithe Ltd

6. Below is data from five companies’ financial statements. Which of the following companies are
potential manipulators according to Benford’s Law? (check all that apply) (Hint: get a calculator so you
can do square roots!) (4 Marks)

Company Number of Leading Digits Kolmogorov-Smirnov statistic

Briard Childress Ltd 230 9.9%

Bulldog Grant Corp 145 6.2%

Dachshund Green Inc 91 13.2%

Lhasa Apso Frazier Co 124 13.2%

Mi-Ki Tice Cie 145 36.2%

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a) Bulldog Grant Corp

b) Briard Childress Ltd

c) Dachshund Green Inc

d) Lhasa Apso Frazier Co

e) Mi-Ki Tice Cie

7. Below is selected data for Swedish Vallhund AB. Calculate discretionary accruals for Swedish
Vallhund using this data. (2 Marks)

Net Income Cash from Operations Prior Normal


(NI) (CFO) TA Accruals

3000 2000 10000 -0.160

a) 1000.160

b) 0.100

c) 0.260

d) -0.060

e) 0.460

8. Who first discovered Benford’s Law?

a) Frank Benford

b) Zahn Bozanic

c) Dan Amiram

d) Ethan Rouen

e) Simon Newcomb

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9. Which of the following actions would decrease a company’s earnings during the period? (check

all that apply)

a) Decrease the amortization period for capitalized costs

b) Capitalize a greater percentage of cash costs

c) Capitalize a smaller percentage of cash costs

d) Increase the amortization period for capitalized costs

10. Which of the following assets are subject to write-downs under the “lower-of-cost-or-market”

accounting principle? (check all that apply)

a) Cash

b) Accounts Receivable

c) Inventory

d) Goodwill

e) Buildings

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