101. Horizontal analysis of comparative financial statements includes the
A. development of common size statements
B. calculation of liquidity ratios.
C. calculation of dollar amount changes and percentage changes from the previous to the current year.
D. evaluation of financial statement data
102. In horizontal analysis each item is expressed as a percentage of the
A. base year figure.
B. retained earnings figure.
C. total assets figure.
D. net income figure.
103. Assume the following sales data for a company:
|
2010
|
$1,017,000
|
|
2009
|
565,000
|
|
|
|
What is the percentage increase in sales from 2009 to 2010?
A. 100%
B. 80%
C. 180%
D. 44.4%
104. Vertical analysis is also known as
A. perpendicular analysis.
B. trend analysis.
C. common size analysis
D. straight-line analysis.
105. In a common size financial statement, which of the following is given a percentage of 100 percent?
A. Total liabilities
B. Net income
C. Costs of Goods Sold
D. Total assets
106. In performing a vertical analysis, the base for cost of goods sold is
A. total selling expenses.
B. net sales.
C. total expenses.
D. total revenues.
107. The ability of a business to pay its debts as they come due and to earn a reasonable amount of income is referred to as
A. solvency and leverage
B. solvency and profitability
C. solvency and liquidity
D. solvency and equity
108. Which of the following is not an analysis used in assessing solvency?
A. number of times interest charges are earned
B. current position analysis
C. ratio of net sales to assets
D. inventory analysis
109. Use the following information to answer Questions 24, 25, and 26.
Accounts payable
|
$ 30,000
|
Accounts receivable
|
65,000
|
Accrued liabilities
|
7,000
|
Cash
|
20,000
|
Intangible assets
|
40,000
|
Inventory
|
72,000
|
Long-term investments
|
100,000
|
Long-term liabilities
|
75,000
|
Marketable securities
|
36,000
|
Notes payable (short-term)
|
20,000
|
Property, plant, and equipment
|
625,000
|
Prepaid expenses
|
2,000
|
|
|
Based on the above data, what is the amount of quick assets?
A. $163,000
B. $195,000
C. $121,000
D. $56,000
110. Use the following information to answer Questions 24, 25, and 26.
Accounts payable
|
$ 30,000
|
Accounts receivable
|
65,000
|
Accrued liabilities
|
7,000
|
Cash
|
20,000
|
Intangible assets
|
40,000
|
Inventory
|
72,000
|
Long-term investments
|
100,000
|
Long-term liabilities
|
75,000
|
Marketable securities
|
36,000
|
Notes payable (short-term)
|
20,000
|
Property, plant, and equipment
|
625,000
|
Prepaid expenses
|
2,000
|
|
|
Based on the above data, what is the amount of working capital?
A. $238,000
B. $138,000
C. $178,000
D. $64,000