91. The percent of fixed assets to total assets is an example of
A. vertical analysis
B. solvency analysis
C. profitability analysis
D. horizontal analysis
92. What type of analysis is indicated by the following?
|
|
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Increase (Decrease*)
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|
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2010
|
2009
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Amount
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Percent
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Current assets
|
$ 380,000
|
$ 500,000
|
$120,000*
|
24%*
|
Fixed assets
|
1,680,000
|
1,500,000
|
180,000
|
12%
|
|
|
|
|
|
|
|
|
|
|
A. vertical analysis
B. horizontal analysis
C. liquidity analysis
D. common-size analysis
93. An analysis in which all the components of an income statement are expressed as a percentage of net sales is called
A. vertical analysis
B. horizontal analysis
C. liquidity analysis
D. common-size analysis
94. A balance sheet that displays only component percentages is called
A. trend balance sheet
B. comparative balance sheet
C. condensed balance sheet
D. common-sized balance sheet
95. One reason that a common-size statement is a useful tool in financial analysis is that it enables the user to
A. judge the relative potential of two companies of similar size in different industries.
B. determine which companies in a single industry are of the same value.
C. determine which companies in a single industry are of the same size.
D. make a better comparison of two companies of different sizes in the same industry.
96. Under which of the following cases may a percentage change be computed?
A. There is no amount in the base year.
B. There is a negative amount in the base year and a negative amount in the subsequent year.
C. The trend of the amounts is decreasing but all amounts are positive.
D. There is a negative amount in the base year and a positive amount in the subsequent year.
97. Assume the following sales data for a company:
What is the percentage increase in sales from 2009 to 2010?
A. 25%
B. 66.7%
C. 50%
D. 150%
98. In a common size balance sheet the 100 percent figure is
A. total property, plant and equipment.
B. total current assets.
C. total liabilities.
D. total assets.
99. In a common size income statement, the 100% figure is
A. net cost of goods sold.
B. net income.
C. gross profit.
D. net sales.
100. Horizontal analysis is a technique for evaluating financial statement data
A. for one period of time.
B. over a period of time.
C. on a certain date.
D. as it may appear in the future.