1. You want to identify the trends of your companys payroll expenses of the past few years in terms of the percentage (%) of the payroll expense over revenues to find out whether the spending on payroll expense is growing or not. Besides, you also want to find out the growth rate (%) of the payroll expense amount ($) in time.

Q. Which of the following is the most appropriate nature of the information you are looking for in the above analysis?

Operating result (or efficiency)

Financial position of the company

Turnover ratio

Sources and/or uses of cash

2. You want to identify the trends of your companys payroll expenses of the past few years in terms of the percentage (%) of the payroll expense over revenues to find out whether the spending on payroll expense is growing or not. Besides, you also want to find out the growth rate (%) of the payroll expense amount ($) in time.

Q. What type of analysis techniques should be applied to answer your questions above?

The vertical analysis of the Income Statements of the past few years

The horizontal analysis of the Income Statements of the past few years

Both the vertical & the horizontal analyses of the Balance Sheets & Income Statements of the past few years.

Both the vertical & the horizontal analysis of the Income statements of the past few years.

3. You want to find out whether your companys annual profit percentage (%) of each years revenues has been growing during the past few years. What type of analysis should you conduct to obtain appropriate information?

Vertical analysis of the Income Statements of the past few years

Horizontal analysis of the Income Statements of the past few years

Vertical analysis of the Balance Sheets of the past few years

Horizontal analysis of the Balance Sheet of the past few years

4. It is the seasonality characteristics of the hospitality industry that resort hotels have different patterns of room sales during the week from those of downtown hotels.

True

False

5. It is the labor-intensive characteristics of the hospitality industry that a hotel operator has to schedule more staff during the evening to accommodate arriving guests than during the mid-day.

True

False