QUESTION 1 Which of the following statements about balance sheet is NOT true? The asset structure reflects a firm's line of business and managerial decisions. Assets must equal liabilities plus equities. It describes what a firm owns, what a firm owes, and its equity at a point of time. Assets are listed in increasing liquidity order; the least liquid assets are listed first. QUESTION 2 Common size financial statements are useful in comparing different size firms comparing firm's performance over time both the above none of the above QUESTION 3 In 2018, AT&T had the total current assets of $51,427 million, total assets of $531,864 million, and total liabilities of $337,980 million. What would be the percentage for total equities in its 2018 common size balance sheet? 100% 10% 36% 64% QUESTION 4 We can compare financial figures over time for a company to identify any trends. This is called Time-trend analysis Peer group analysis Both the above None of the above QUESTIONS In the common size income statement, what do we use as 100%? Net Income Earnings before interests and taxes Costs of goods sold Sales QUESTIONS In 2018, AT&T had the total sales of $170.756 million, costs of $79,419 million, and net income of $19,370 million What would be the percentage for costs in its 2018 common size income statement? 100% 47% 11% 24% QUESTION 7 Which of the following is NOT an item on balance sheet? Inventory Cash Net Income Equity QUESTIONS 1 pc You conduct a common balance sheet analysis on Walmart. You find that its long-term debt increased from 22% to 28% in the latest two years. How would you interpret this finding? The company increased its long-term debt when compared to total assets in the past two years. The company borrows less in long-term debt when compared to total assets in the past two years. The total long-term debt went down in terms of the dollar amount over this time period. A None of the above