6.Comparisons with a competitor company to provide insight into a company's competitive position is an a. intracompany basis comparison.

b. intercompany basis comparison.

c. industry comparison.

d. both a and c

e. none of the above

7.A technique for evaluating a series of financial statement data over a period of time is called

a. horizontal analysis.

b. vertical analysis.

c. ratio analysis.

d. none of the above

e. both a and b

8.A technique for evaluating financial statement data that expresses each item within a financial statement as a percentage of a base amount is called

a. horizontal analysis.

b. vertical analysis.

c. ratio analysis.

d. none of the above

e. both a and b

9.Vertical analysis of comparative income statements would show cost of goods sold as a percentage of

a. total assets.

b. inventory.

c. net sales.

d. net income

e. total liabilities.

10.A measure of the ability of a company to pay total liabilities is a

a. liquidity ratio.

b. solvency ratio.

c. current ratio.

d. profitability ratio.

e. working capital ratio.