Financial Statements
 
  1. Question: Comparisons of data within a company are an example of the following comparative basis:

    A
    Industry average.

    B
    Intracompany.

    C
    Intercompany

    D
    None

    Note: Not available
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  2. Question: In horizontal analysis, each item is expressed as a percentage of the:

    A
    net income amount.

    B
    stockholders' equity amount.

    C
    total assets amount.

    D
    base year amount.

    Note: Not available
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  3. Question: In vertical analysis, the base amount for depreciation expense is generally:

    A
    net sales.

    B
    depreciation expense in a previous year.

    C
    gross profit.

    D
    fixed assets.

    Note: Not available
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  4. Question: The following schedule is a display of what type of analysis? Amount Percent Current Assets $200,000 25% Property, Plant and equipment $600,000 75% Total Assets $800,000

    A
    Horizontal analysis

    B
    Differential analysis

    C
    Vertical analysis

    D
    Ratio analysis

    Note: Not available
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  5. Question: Earlville Corporation reported net sales of $300,000, $330,000 and $360,000 in the years, 2000, 2001 and 2002 respectively. If 2000 is the base year, what is the trend percentage for 2002?

    A
    77%

    B
    108%

    C
    120%

    D
    130%

    Note: Not available
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  6. Question: Which of the following measures is an evaluation of a firm's ability to pay current liabilities?

    A
    Acid-test ratio.

    B
    Current ratio.

    C
    Acid-test and current ratio

    D
    None

    Note: Not available
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  7. Question: A measure useful in evaluating the efficiency in managing inventories is:

    A
    Current ratio.

    B
    Asset turnover.

    C
    Inventory turnover.

    D
    Receivables turnover.

    Note: Not available
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  8. Question: Yorkville Coporation reported net income $24,000, net sales $400,000 and average assets $600,000 for 2002. The 2002 profit margin was:

    A
    6%

    B
    12%

    C
    40%

    D
    200%

    Note: Not available
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  9. Question: Which of the following is generally not considered to be a limitation of financial analysis?

    A
    Use of estimate.

    B
    Use of ratio analysis.

    C
    Use of cost.

    D
    Use of alternative accounting methods.

    Note: Not available
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