Management

1. Question:

What type of analysis is indicated by the following?

  Your Answer:

         | | vertical analysis | |     |

         | | horizontal analysis | |    CORRECT |

         | | liquidity analysis | |     |

         | | common-size analysis | |     |

  Points Received: 3 of 3   Comments:

2. Question:

Assume the following sales data for a company:

  Your Answer:

         | | 25% | |     |

         | | 66.7% | |     |

         | | 50% | |    CORRECT |

         | | 150% | |     |

  Points Received: 3 of 3   Comments:

3. Question:

Horizontal analysis is a technique for evaluating financial statement data

  Your Answer:

         | | for one period of time. | |     |

         | | over a period of time. | |    CORRECT |

         | | on a certain date. | |     |

         | | as it may appear in the future. | |     |

  Points Received: 3 of 3   Comments:

4. Question:

performing a vertical analysis, the base for cost of goods sold is

  Your Answer:

         | | total selling expenses. | |     |

         | | net sales. | |    CORRECT |

         | | total expenses. | |     |

         | | total revenues. | |     |

  Points Received: 3 of 3   Comments:

5. Question:

Assume that Axle Company reported a net loss of $50,000 in 2009 and net income of $250,000 in 2010. The increase in net income of $300,000

  Your Answer:

         | | can be stated as 0% | |    INCORRECT |

         | | can be stated as 100% increase | |     |

         | | cannot be stated as a percentage | |    CORRECT ANSWER |

         | | can be stated as 200% increase | |     |

  Points Received: 0 of 3   Comments:

6. Question:

In the income statement of a manufacturing company, what replaces purchases in the cost of goods section of a retail company?

  Your Answer:

         | | Finished goods | |     |

         | | Cost of merchandise available | |     |

         | | Cost of...