Why is fraud more prevalent in the United States than in other countries? ere are more companies in the United States than in other countries Corporate executive pay is more closely tied to company performance than in other countries audit function is weaker in the United States than in other countries c. The d. American executives are more corrupt than executives in other countries . In a trend analysis, an index number of 139 for 2009 sales indicates that a. sales for 2009 were 139 percent higher than sales for the same company in the base year b. sales for 2009 for this company were 139 percent of the sales figure of anolber compary being used in the comparison. c. sales for 2009 were 139 percent of the sales for the same company in the base year. d. actual sales for 2009 exceeded budgeted sales for 2009 by 39 percent. 45. An example of horizontal analysis is a. common-size statements b. trend analysis. c. ratio analysis d. profitability analysis. +6. In conducting horizontal analysis, it is important to focus attention on the changes in a. the composition of the statements b. dollar amounts and their percentages. c. dollar amounts. d. percentages A common measure of liquidity is a. profit margin. b. receivable turnover T/. return on assets. c. d. asset turnover Return on assets is most closely related to a. interest coverage and the debt to equity ratios b. profit margin and the debt to equity ratio. c. profit margin and asset turnover. d. inventory turnover and profit margin. 48. 49, a. Return on equity b. Dividends yield c. Profit margin d. Cash flow yield Which of the following ratios involves the market price of a company's stock? 5. The ability to pay bills when due and to meet unexpected needs for cash most closely describes a. cash flow adequacy b. long-term solvency c. liquidity d. profitability