ACG 3173 Final Exam Questions and
All Correct Answers 2025-2026
Updated.
ROA = - Answer NI / Average Total Assets
ROE = - Answer NI / Average SE
Working Capital = - Answer CA - CL
Current Ratio = - Answer CA / CL
Quick Ratio = - Answer (Cash + A/R) / CL
Cash Ratio = - Answer Cash / CL
Debt-to-Equity = - Answer Total Debt / Total Equity
Debt Ratio = - Answer Total Debt / Total Assets
Ending SE = - Answer Beg SE
+NI
-Dividends
Income Statement - Answer Sales
-COGS
=Gross Profit
-Operating Expenses
=OI or EBIT
+Other Rev & Gains
(Interest Income)
-Other Expenses & Losses
(Interest Expense)
=EBT or Taxable Income
, -Tax Expense
=NI or EAT
Net Realizable Value of A/R = - Answer A/R
-Allowance for Bad Debt
End Bad Debt Allowance = - Answer Beg Bad Debt Allowance
+Bad Debt Expense
-Write Offs
Write offs don't affect ratios.
Bad Debt Expense affects? - Answer NI, Assets, and since NI also equity.
Chapter 5 HW #6
ROI = - Answer Amount of Return / Amount Invested
FIFO vs Weighted Avg. vs LIFO - Answer FIFO has the lowest COGS and highest Ending
Inventory
LIFO is opposite
Weighted Avg. is in the middle
LIFO is better for - Answer Minimizing Taxes
Depreciation vs Amortization vs Depletion - Answer Depreciation = Tangible
Amortization = Intangible
Depletion = Natural Resources
Earnings Management - Answer Seeks to smooth out volatility. Less volatile = more
attractive. (When a company manipulates its earnings by accelerating revenues and deferring
expenses)
3 Rules of MACRS - Answer 1. Has 0 salvage value.
2. IRS determines useful life.
3. Companies must use Half Year Convention
All Correct Answers 2025-2026
Updated.
ROA = - Answer NI / Average Total Assets
ROE = - Answer NI / Average SE
Working Capital = - Answer CA - CL
Current Ratio = - Answer CA / CL
Quick Ratio = - Answer (Cash + A/R) / CL
Cash Ratio = - Answer Cash / CL
Debt-to-Equity = - Answer Total Debt / Total Equity
Debt Ratio = - Answer Total Debt / Total Assets
Ending SE = - Answer Beg SE
+NI
-Dividends
Income Statement - Answer Sales
-COGS
=Gross Profit
-Operating Expenses
=OI or EBIT
+Other Rev & Gains
(Interest Income)
-Other Expenses & Losses
(Interest Expense)
=EBT or Taxable Income
, -Tax Expense
=NI or EAT
Net Realizable Value of A/R = - Answer A/R
-Allowance for Bad Debt
End Bad Debt Allowance = - Answer Beg Bad Debt Allowance
+Bad Debt Expense
-Write Offs
Write offs don't affect ratios.
Bad Debt Expense affects? - Answer NI, Assets, and since NI also equity.
Chapter 5 HW #6
ROI = - Answer Amount of Return / Amount Invested
FIFO vs Weighted Avg. vs LIFO - Answer FIFO has the lowest COGS and highest Ending
Inventory
LIFO is opposite
Weighted Avg. is in the middle
LIFO is better for - Answer Minimizing Taxes
Depreciation vs Amortization vs Depletion - Answer Depreciation = Tangible
Amortization = Intangible
Depletion = Natural Resources
Earnings Management - Answer Seeks to smooth out volatility. Less volatile = more
attractive. (When a company manipulates its earnings by accelerating revenues and deferring
expenses)
3 Rules of MACRS - Answer 1. Has 0 salvage value.
2. IRS determines useful life.
3. Companies must use Half Year Convention
