171.
Match each item with its definition.
1. An analysis of a company’s ability to pay its current liabilities.Horizontal analysis
2. Occurs when a company abandons a segment.Extraordinary Items
3. Something that is both unusual and infrequent.Current position analysis
4. This requires a restatement of prior period financial statements.Vertical analysis
5. Useful for comparing one company to another or a company with industry averages Discontinued Operations
6. Focuses on a company’s ability to generate net incomeProfitability analysis
7. A percentage analysis of increases and decreases in related items in comparative financial statements. Common-sized financial statements
8. The percentage analysis of the relationship of each component in a financial statement to a total within the statement. Change from one generally accepted accounting principle to another
172. Comparative information taken from the Koda Company financial statements is shown below:
2012 _ 2011
(a)Notes receivable$ 10,000$ -0-
(b)Accounts receivable175,000140,000
(c)Retained earnings30,000(40,000)
(d)Sales840,000750,000
(e)Operating expenses160,000200,000
(f)Income taxes payable28,00020,000