1) Trend analysis

	a.	identifies changes over time
	b.	focus on important relationships within financial statements
	c.	presents each asset as a percentage of net sales
	d.	presents each liability as a percentage of total liabilities

2) C/G/S divided by average inventory is the

	a.	inventory turnover ratio
	b.	days inventory on hand
	c.	asset turnover ratio
	d.	days to collect

3) Another term for horizontal analysis is

	a.	industrial analysis
	b.	financial analysis
	c.	trend analysis
	d.	common size analysis

4) A company's ability to generate income is referred to as

	a.	solvency
	b.	efficiency
	c.	profitability
	d.	liquidity