If Year 1 sales equal $750, Year 2 sales equal $840, and Year 3 sales equal 5900, the percentage to be assigned for Year 3 in a trend analysis, assuming that year is the base year, is a. 120%. b. 112%. c. 83% d. 107%. 7 Which one of the following is not a characteristic generally evaluated in ratio analysis a. Liquidity b. Profitability c. Marketability d Solvency Bill's Dollar Store had a balance in the Accounts Receivable account of $700.000 at the beginning of the year and a balance of $840,000 at the end of the year Net credit sales during the year amounted to $6,400,000. The accounts receivable turnover was a. 7.6 times b. 8.4 times C 8.0 times d. 4.0 times Junebag Corporation reported net income $24,000, nel sales 5400,000, and average assets $600,000 for 2022. What is the 2022 profit margin? a. 6% c. 40% d. 67% 16. What is the periodicity assumption? a Companies should recognize revenue in the ac hould recognize revenue in the accounting period in which services are performed b. Companies should match expenses with revenues omic life of a business can be divided into artificial time periods. d. The fiscal year should correspond with the calendar year 17. Which principle dictates matching expenses with revenues company generate those revenues a. Expense recognition principle b. Historical cost principle c. Periodicity d. Revenue recognition principle 18. Customarily, a trial balance is prepared a. at the end of each day. b. after each journal entry is posted. c. at the end of an accounting period. d. only at the inception of the business. 19 in the accrual basis of accounting revenue is recorded only when cash is received and expense is recorded only when cash is paid. True False 20. Cash-basis accounting is not in accordance with generally accepted accounting principles for publicly traded companies. True False 10. All of the following situations below might indicate a company has a low quality of earnings except a. A lack of disclosure about guaranteed payments that were mentioned in the MOSA of the annual report b. Maintenance costs are capitalized and then depreciated. c Revenue is recognized when earned. d. Adoption of a different inventory method for each of the last three years 11. The accounting equation must always balance. True False 12. In the Double Entry Accounting system each transaction must affect two or more accounts to keep the basic accounting equation in balance True False 13. Posting a. normally occurs before journalizing b. transfers ledger transaction data to the journal c. is an optional step in the recording process d. transfers journal entries to ledger accounts 14. A trial balance does not prove that all transactions have been recorded or that the ledger is correct True False 15. When collection is made on Accounts Receivable, a. total assets will remain the same. b. stockholders equity will increase c. total assets will increase d. total assets will decrease