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.