Q1. Which of the following best describes vertical analysis?

A. Displays financial ratios in a vertical (up/down) format.

B. Shows a trend analysis of the same line item from one year to the next.

C. Shows a comparison of a line item within a statement to another line item within that same statement.

D. Displays percentage changes for equity distributions from last year to the current year.

Q2. The control phase of an operating budget includes which of the following?

A. Assigning managerial tasks.

B. Developing the organizational structure for the company.

C. Controlling asset levels to meet sales demands.

D. Comparing the budget with actual results.

Q3.The capital expenditures budget is an estimate of the long-term tangible and intangible assets to be purchased.

A. True

B. False

Q4. Which of the following have traditionally made up the majority of external financing transactions by corporations?

A. Corporate bond issuances

B. Preferred stock issuances

C. Common stock issuances

D. None of the listed answers are correct.