Question
Purchase and sale of property, plant and equipment would be considered in a. the operating portion of the statement of cash flows. b. the capital
Purchase and sale of property, plant and equipment would be considered in
a.
the operating portion of the statement of cash flows.
b.
the capital portion of the statement of cash flows.
c.
the investing portion of the statement of cash flows.
d.
the financing portion of the statement of cash flows.
Comparison of a companys performance with other companies in the same industry is known as
Benchmarking
Horizontal Analysis
Trend Analysis
Vertical Analysis
The margin of safety for a company can best be described as the
The sales level at which operating income is zero
The excess of actual sales over breakeven sales
The excess of actual sales over budgeted sales
The amount of fixed and variable costs that make up a companys total costs
Which of the following is generally used as the base amount when performing a vertical analysis of an income statement?
Total expenses
Gross profit
Gross sales
Net sales
All of the following are sections of the statement of cash flows except
Cash from investing activities
Cash from financing activities
Cash from capital activities
Cash from operating activities
To help forecast future performance of specific areas of a companys financials, what technique would you use?
Trend analysis
Vertical Analysis
Horizontal analysis
Benchmarking
An example of the management function, _______________, is overseeing the day-to-day operations of the company.
Controlling
Directing
Analyzing
Planning
The contribution margin ratio is a reflection of the percentage of each sales dollar that
contributes towards period expenses.
contributes towards sales revenue.
contributes towards fixed costs and generating a profit.
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