(Q6~Q10) The following questions are about analytical procedues. Choose the correct answer among choices A~ E

Q6. In analyzing a company's financial statements, which financial statement would a potential investor primarily use to assess the company's liquidity and financial flexibility?

a. Statement of cash flows

b. income statement

c. Statement of retained earnings

d. balance sheet

Q7. Suppose that, following data is presented : 20X1 Accounts receivable at beginning of year is $20,000, 20X1 Accounts receivable at end of year is 22,000. Theaccounts receivable turn over ratio of 20X1 is 5.0 times, what is the 20X1 Sales?

a. $105,000

b. $107,000

c. $110,000

d. $210,000

Q8. Which statement is true? A Analytical review comparisons provide explicit evidence. B. Data generated and directly obtained from independent sources outside entity increase the reliability of data. C. If an auditor concludes that materiality have to be adjusted to lower level and IR&CR is high, test of details is reduced, on the other hand, analytical procedure increase. D. Analytical procedure used for 3 stages: Risk assessment process, Substantive procedures, overall review. Application of the analytical procedure (all of 3 stage) is optional. 09. Suppose that, following data is presented : Net sales is $600,000, Net income is $150,000, Total assets (January 1) is $2,000,000, and Total assets (December 31) is $3,000,000. What is return on asset? A. 5% B. 24% C. 6% D. 20% ) is imply : "how efficiently the company maintains quality control Q10. ( procedures." A. Operating expense ratio B. Interest coverage ratio C. Gross profit margin D. Sales return ratio