13. Common-size financial statements are useful in: A. Analyzing income statements. B. Analyzing companies of different sizes. C. Alerting users of differences that should be explored and explained. D. Comparing different geographical regions of a company. E. All of these answers are correct.

14. Accounts receivable turnover measures: A. How long it takes to convert its average accounts receivable into cash during the period. B. How long it takes to sell inventory on credit. C. The relationship of cash sales to credit sales. D. How long it takes to sell inventory on credit and how often a company converts its average accounts receivable into cash during the period. E. How often a company converts its average accounts receivable into cash during the period and the relationship of cash sales to credit sales.

15. Legal costs incurred to get a corporation up and running should be accounted for by debiting: A. Retained earnings. B. Share capital. C. Organization costs. D. Cash. E. Common shares.