1) An analysis in which all the components of an income statement are expressed as a percentage of net sales is called

Group of answer choices

horizontal analysis

liquidity analysis

solvency analysis

common-sized income statement

2)

A business has $575,000 in current liabilities and $950,000 in current assets. If they pay a $15,000 current liability. As a result of this transaction, the current ratio and working capital will

Group of answer choices

both decrease.

both increase.

increase and remain the same, respectively.

remain the same and decrease, respectively

3)

Which of the following should be shown on a statement of cash flows under the financing activity section?

Group of answer choices

payment of a cash dividend

purchasing inventory

cash received from sale of equipment

issuing a mortgage note to purchase a building

4)

Long-term creditors are typically most interested in assessing

Group of answer choices

profitability.

operating results.

liquidity

solvency