The owners' equity statement for a partnership is called the a. partners' proportional statement b. partners' capital statement c. statement of shareholders' equity. d. capital and drawing statement. Which of the following would not cause an increase in partnership capital? a. Drawings b. Net income c. Additional capital investment by the partners d. Initial capital investment by the partners Horizontal analysis evaluates a series of financial statement data over a period of time a. that has been arranged from the highest number to the lowest number b. that has been arranged from the lowest number to the highest number c. to determine which items are in error. d. to determine the amount and/or percentage increase or decrease that has taken place 10 Vertical analysis is a technique which expresses each item within a financial statement a in dollars and cents b. in terms of a percentage of the item in the previous year. c. in terms of a percent of a base amount. d. starting with the highest value down to the lowest value A ratio calculated in the analysis of financial statements a. expresses a mathematical relationship between two numbers b. shows the percentage increase from one year to another c. restates all items on a financial statement in terms of dollars of the same purchasing power. d. is meaningful only the numerator is greater than the denominator Which of the following is not a profitability ratio? a. Payout ratio b. Profit margin c. Times interest earned d. Return on common stockholders' equity