Question
1) Which of the following applies to vertical analysis? a. also called financial analysis b. financial statement data for the same year is compared to
1) Which of the following applies to vertical analysis?
| a. | also called financial analysis | |
| b. | financial statement data for the same year is compared to different accounts | |
| c. | also referred to as trend analysis | |
| d. | financial statement data for the same accounts are compared to different years |
2) Which of the following would be a characteristic of discontinued operations?
| a. | is shown net of taxes on the income statement | |
| b. | are shown on the income statement after income from operations but before extraordinary items | |
| c. | have 2 components: the gain or loss on disposal and the income or loss while still in operations | |
| d. | all are correct |
3) A company reports sales of $1,200,000 and $1,322,000 for the years 2011 and 2012 respectively. What is the amount of the change in sales? (Be careful with this one. Take a second look at what the question is asking)
| a. | $122,000 increase | |
| b. | 10.2% increase | |
| c. | 9% decrease | |
| d. | $122,000 decrease |
4) Days payable is
| a. | all are correct | |
| b. | a liquidity ratio | |
| c. | is the number of days, on average, it takes us to pay our accounts payables | |
| d. | calculated: 365 / payables turnover |
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