71.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
72.Assume the following sales data for a company:
Current year$1,025,000
Preceding year820,000
What is the percentage increase in sales from the preceding year to the current year?
a. 100%
b. 25%
c. 125%
d. 75%
73.Income statement information for Sadie Company is below:
Sales
|
$175,000
|
Cost of goods sold
|
115,000
|
Gross profit
|
$ 60,000
|
Using vertical analysis of the income statement for Sadie Company, determine the gross profit margin.
a. 100%
b. 66%
c. 34%
d. 29%
74.In a vertical analysis, the base for cost of goods sold is
a.total selling expenses
b.sales
c.total expenses
d.gross profit
75.Percentage analyses, ratios, turnovers, and other measures of financial position and operating results are
a.a substitute for sound judgment
b.useful analytical measures
c.enough information for analysis; industry information is not needed
d.unnecessary for analysis, but reaction is better
76.The relationship of $325,000 to $125,000, expressed as a ratio, is
a. 2.0
b. 2.6
c. 2.5
d. 0.45
77.The ability of a business to pay its debts as they come due and to earn a reasonable net income is
a.solvency and leverage
b.solvency and profitability
c.solvency and liquidity
d.solvency and equity
ACCT.AICPA.FN.03 - MeasurementBUSPROG: Analytic
Accounts payable
|
$ 40,000
|
Accounts receivable
|
65,000
|
Accrued liabilities
|
7,000
|
Cash
|
30,000
|
Intangible assets
|
40,000
|
Inventory
|
72,000
|
Long-term investments
|
110,000
|
Long-term liabilities
|
75,000
|
Marketable securities
|
36,000
|
Notes payable (short-term)
|
30,000
|
Property, plant, and equipment
|
625,000
|
Prepaid expenses
|
2,000
|
78.Based on the above data, what is the amount of quick assets?
a. $205,000
b. $203,000
c. $131,000
d. $66,000
79.Based on the above data, what is the amount of working capital?
a. $238,000
b. $128,000
c. $168,000
d. $203,000
80.Based on the above data, what is the quick ratio, rounded to one decimal point?
a. 2.7
b. 2.6
c. 1.7
d. 0.9