Which of the following correctly describes some detail of the discontinued operations?: a.It is part of the Other Income and Expenses section. b. They are presented as part of income from continuing operations. c.It is presented at the end of the statement of income and expenses before net income. d. The tax effect of the item is presented added or subtracted from the total expense of taxes on income. When measuring liquidity, which of the following measures would be more reliable? a. Earnings per share (EPS). b. Gross profit ratio. c. Current ratio. d. Acid fest (Acid Test ratio). Which of the following statements best describes the notes to the financial statements? a. They are an essential part of the financial statements that detail information that adds value to the knowledge of the company's situation and to the decision-making process. b.Include details of the opinion expressed by the external auditors. c. They are prepared by the external auditors. d. They are optional in the preparation of financial statements. Which of the following best describes the financial statement analysis process? a. Accurate information is obtained on the results of operations. b.Supports a decision-making process that allows the company's performance to be reasonably evaluated and compared. c. It is prepared by the board of directors to comply with generally accepted accounting principles. d. It allows the external auditors to know the situation of the company and determine the chances of success of the organization in the future, which they attest to in their opinion about the future of the company Net cash flow from financing activities could include payment for a.the acquisition of shares of another company. b.Payment of interest on long-term debt. c. stock dividends to shareholders. d.the purchase of shares in portfolio (treasury stock). In a vertical analysis of the Statement of Income and Expenses, general, selling and administrative expenses are presented as a percentage of: a. Gross profit b. Total assets c.Net sales d. net income Which of the following statements best describes the Management Discussion and Analysis (MD&A) section of a company's financial statements?: a. Presents various financial aspects of the company as discussed by the external auditors. b.It is audited by external auditors. c. Expresses management's opinion regarding the company's expansion capacity, risks and opportunities. d. Presents the opinion of the external auditors in which they state that the financial statements reliably reflect the results of operations and the financial situation. An insurance paid in advance would be presented in the Statement of Financial Position as: a. Property, plant and equipment b.Intangible assets c. Current assets d. Current debt Which of the following is an example of a solvency analysis? a. Inventory turnover. b.Acid test. c. Accounts receivable turnover (Accounts receivable turnover_. d. Number of times interest paid (times interest earned) Which of the following is the best interpretation of a low debt-to- equity ratio? The company a.makes all purchases on credit b.prefers to obtain cash through the issue of shares instead of borrowing in the long term c.prefers to pay interest rather than dividends to its shareholders d.it has no liquidity Which of the following ratios is NOT used to assess the profitability of a business? a. Profit margin b. Acid test (Acid test/quick ratio) c. Return on equity d. Earnings per share (Earnings per share) ABC is a department store with annual sales of less than $1,000,000. When evaluating this company to determine whether to make an investment in company stock, the 2021 analytical measures can and should be compared to the analytical measures of a. The industry average of manufacturing companies for 2021 b.Other department stores with annual sales of less than $1,000,000 c. A department store with annual sales over $15,000,000 d.A manufacturing company with annual sales of less than $1,000,000 Which of the following transactions would NOT appear in the operating activities section of the Statement of Cash Flows? a.Cash paid for interest and contributions. b.Cash paid for the purchase of land c.Cash received from customers d.Cash paid to suppliers for the purchase of merchandise. Which of the following items is subtracted from net income to compute net cash flow from operating activities (indirect method) a.a loss on the sale of equipment b.an increase in accounts payable c. dividends paid in shares dan increase in inventory