1 Indirect expenses are expenses directly related to the revenue-producing activities of the business.

True

False

2 The most common basis for distributing indirect expenses are ______ & _______.

Revenue and Square Footage

Guest Count and Square Footage

Guest Count and Revenue

Occupancy and Revenue

Occupancy and Guest Count

3This statement details the movement in owner's equity over a period.

Income Statement

Horizontal Income Statement

Cash Flow Statement

Statement of Retained Earnings

4 Which of the following is used to calculate the gross profit?

Indirect expenses

Fixed expenses

Revenue

FIFO

5 Products in an electronic store consist of the following: 20 TVs delivered on January 10^that a cost of $100 each and 30 TVs delivered on February 2^ndat a cost of $110. They are all the same model. Using the FIFO inventory method, what would the remaining value of inventory be if 15 TV's were sold on February 28^th?

$3,650

$3,800

$5,300

$3,710

6 Revenue and cost of sales are accounts shown on the Income Statement that deals with operational decisions.

True

False

8 Both, horizontal analysis and vertical analysis are financial management tools that can be used to analyze the Balance Sheet and Income Statement.

True

False