1. Financial Analysis Tools discussed in ACCT 101 / textbook to better evaluate financial statement / company operating results include all of the following EXCEPT: a. Ratio Analysis b. Vertical Analysis C. Circular Analysis d. Horizontal Analysis 2. Horizontal analysis : a. Is a technique for evaluating a series of financial statement data over a period of time. b. Is also known as trend analysis c. is used to determine the increase or decrease that has taken place. d. Is expressed as either an amount or a percentage. e. All of the above. 3. Vertical analysis: a. Is also known as common-size analysis b. Is a technique for evaluating financial statement data that expresses each item in a financial statement as a percentage of a base amount C. All of the above. 4. Liquidity Ratios: a. Measure the short-term ability of the company to pay its maturing obligations and to meet unexpected needs for cash. b. Measure the ability of the company to survive over a long period of time. C. Measure the income or operating success of the company for a given period of time. 5. Profitability Ratios: a. Measure the short-term ability of the company to pay its maturing obligations and to meet unexpected needs for cash. b. Measure the ability of the company to survive over a long period of time. C. Measure the income or operating success of a company for a given period of time. 6. Solvency Ratios: a. Measure the short-term ability of the company to pay its maturing obligations and to meet unexpected needs for cash. b. Measure the ability of the company to survive over a long period of time. C. Measure the income or operating success of a company for a given period of time. 7. Which statement is true: An extraordinary item must meet which of the following three criteria? a. Unusual and measurable, shown net of income tax. b. Infrequent and unusual, shown net of income tax. C. Foreseeable and material, shown net of income tax. d. Substantial and measurable, shown net of income tax. 8. Test Your Practical Skills: If you are told that LSJ Company accounts payable at December 31, 2023 represents 15% of the company's total liabilities on their balance sheet...this would represent an example of what type of analysis: a. Vertical Analysis b. Horizontal Analysis C. Ratio Analysis 9. Test Your Practical Skills: If you are told that LSJ Company's net income (12/31/2023) increased 55% when compared to net income (12/31/2022)...this would represent an example of what type of analysis: a. Vertical Analysis b. Horizontal Analysis c. Ratio Analysis 10. Test Your Practical Skills: If you are told that LSJ Company turns its accounts receivable over every 33 days...this would represent an example of what type of analysis: a. Vertical Analysis b. Horizontal Analysis C. Ratio Analysis 11. Test Your Practical Skills: If you are told that LSJ Company's net income (12/31/2023) was $1,000,000 and net income (12/31/2022) was $500,000 ... Applying your horizontal analysis tools and calculate the net increase in dollars and in a percentage year over year: 12. Test Your Practical Skills: If you are told that LSJ Company's plant property and equipment value at 12/31/2023 is $750,000 of the company's total assets of $1,000,000 ...Apply your vertical analysis skills and calculate what percentage the PPE represents of total assets
