51) Refer to the EZ Electronics annual report above. Using vertical analysis,
2011
net income would be represented as ________.
A) 19%
B) 100%
C) 20%
D) 22%
52) Refer to the EZ Electronics annual report above. Using vertical analysis,
2012
net income would be represented as ________.
A) 19%
B) 100%
C) 21%
D) 22%
53) Owners' contributions and dividends are reported as special items on income statements.
54) Horizontal analysis is a technique used to evaluate a series of financial statement data over a period of time.
55) Vertical analysis is a technique used to evaluate a series of financial statement data over a period of time.
56) In horizontal analysis, each item in a financial statement is expressed as a percentage of a selected line on the statement.
57) In vertical analysis, each item in a financial statement is expressed as a percentage of a selected line on the statement.
58) In horizontal analysis, each item on an income statement is expressed as a percentage of sales.
59) In vertical analysis, each item on an income statement is expressed as a percentage of sales.
60) In horizontal analysis, each item on a balance sheet is expressed as a percentage of total assets.
61) The notes to the financial statements are the last place to look for additional information whenever an analysis reveals something interesting or suspicious.
62) What is vertical analysis?