1. Financial statements are only produced by large listed companies. Is this statement true or false? Select one: a. True b. False

2. At the end of an accounting period, the amount of net profit earned by a company is transfered to:

Select one:

a.

Balance Sheet

b.

Assets

c.

Liabilities

d.

Not transferred to Balance Sheet.

3.

If profit before tax is $320 000, required rate of return is 15% and the investment is $1 900 000, the calculated residual income is:

Select one:

a.

$1 580 000.

b.

$35 000.

c.

13.2%.

d.

$50 000.

When a business compares the reported dollar amounts in the current period with the equivalent amounts for a preceding period, this is known as;

Select one:

a.

Horizontal analysis

b.

Vertical analysis

c.

Ratio analysis

d.

None of the above