93-98

93. Organization costs are: a. part of the company's start-up and are listed as expenses b. listed as an intangible asset on the balance sheet c. a current asset on the balance sheet d. another expense on the income statement 94. Statements that are often used to compare similar businesses are called: a. comparative analysis b. vertical analysis c. horizontal analysis d. common-size statements 95. In a common-size income statement, selling expenses are 55%. This means that they are 55% of: a. net income b, net sales c. gross profit d. net proft 96. If Cara's Piano sales increased from $40,000 to $60,000 and its cost of goods sold increased from $20,000 to $40,000, then vertical analysis based on sales would show the following for cost of goods sold (rounded to the nearest percent): a, 40% and 20% b, 10% and 30% c, 50% and 67% d, 67% and 40% 97. The current ratio determines the ability of a company to: a. pay off all payables b. pay off current payables c. manage its ability to earn profit d. use its equity 98. If management wishes to evaluate the ability of a business to provide funding to cover the operating expenses, they could use the a. rate of return on total assets b. rate of return on common stockholders' equity c. gross profit rate d. times interest earned