1.Vertical Analysis Is Also Known As (Points: 2) Perpendicular Analysis. Common Size Analysis

1.Vertical analysis is also known as (Points: 2) perpendicular analysis. common size analysis. trend analysis. straight-line analysis.

2. Assume the following cost of goods sold data for a company: 2009 $1,500,000 2008 1,200,000 2007 900,000 If 2007 is the base year, what is the percentage increase in cost of goods sold from 2007 to 2009? (Points: 2) 167% 67% 60% 40%

3. The current ratio is (Points: 2) calculated by dividing current liabilities by current assets. used to evaluate a company's liquidity and short-term debt paying ability. used to evaluate a company's solvency and long-term debt paying ability. calculated by subtracting current liabilities from current assets.

4. The acid-test (quick) ratio (Points: 2) is used to quickly determine a company's solvency and long-term debt paying ability. relates cash, short-term investments, and net receivables to current liabilities. is calculated by taking one item from the income statement and one item from the balance sheet. is the same as the current ratio except it is rounded to the nearest whole percent.

5. Waters Department Store had net credit sales of $12,000,000 and cost of goods sold of $9,000,000 for the year. The average inventory for the year amounted to $2,000,000. Inventory turnover for the year is (Points: 2) 6 times. 10.5 times. 4.5 times. 3 times.

6. Inventory turnover is calculated by dividing (Points: 2) cost of goods sold by the ending inventory. cost of goods sold by the beginning inventory. cost of goods sold by the average inventory. average inventory by cost of goods sold.

7. Which of the following is not a profitability ratio? (Points: 2) Payout ratio Profit margin Times interest earned Return on common stockholders' equity

8. Times interest earned is also called the (Points: 2) money multiplier. interest coverage ratio. coupon coverage ratio. premium ratio.

9. The ratio that uses weighted average common shares outstanding in the denominator is the (Points: 2) price-earnings ratio. return on common stockholders' equity. earnings per share. payout ratio.

10. The order of presentation of nontypical items that may appear on the income statement is (Points: 2) Extraordinary items, Discontinued operations, Other revenues and expenses. Discontinued operations, Extraordinary items, Other revenues and expenses. Other revenues and expenses, Discontinued operations, Extraordinary items. Other revenues and expenses, Extraordinary items, Discontinued operations. ------