ACCT212 Week 7 Quiz Latest 2017 November (all correct answers)

Question 1

3 / 3 pts

(TCO 1) Horizontal analysis is most closely related to

trend analysis.

economic value added analysis.

vertical analysis.

benchmarking.

Question 2

3 / 3 pts

(TCO 1) Horizontal analysis is performed on

only the income statement.

only the balance sheet.

only the statement of retained earnings

the income statement, the balance sheet, and the statement of retained earnings.

Question 3

3 / 3 pts

(TCO 1) A vertical analysis is primarily concerned with

the dollar amount of the change in various financial statement amounts from year to year.

individual financial statement items expressed as a percentage of a base (which represents 100%).

percentage changes in the balances shown in comparative financial statements.

the change in key financial statement ratios over a specified period of time.

Question 4

3 / 3 pts

(TCO 1) A financial statement item expressed as a percentage of a base amount is a result of

horizontal analysis.

ratio analysis.

vertical analysis.

comparative analysis.

Question 5

3 / 3 pts

(TCO 1) On a common-size balance sheet each item is expressed as a percentage of

current assets.

operating income.

total assets.

net income.

Question 6

3 / 3 pts

(TCO 1) Benchmarking financial statements represents a form of

horizontal analysis.

vertical analysis.

gross profit analysis.

trend analysis.

Question 7

3 / 3 pts

(TCO 1) Analyzing the statement of cash flows may help analysts determine the financial health of a company. Which of the following signs below is a not indicator of a financially healthy company?

The company's operations are a major source (not a use) of cash.

The company's operations are a major use (not a source) of cash.

The company's investing activities include more purchases than sales of long-term assets.

The company's financing activities are not dominated by borrowing.

Question 8

3 / 3 pts

(TCO 1) On a statement of cash flows, which is considered an operating activity?

Sale of securities

Purchase of fixed assets

Purchase of securities

Depreciation

Question 9

3 / 3 pts

(TCO 1) The ratio that provides an estimate of the number of days, on average, that it takes for customers to pay their account is the

days' sales in receivables

current ratio.

accounts receivable turnover.

acid-test ratio.

Question 10

3 / 3 pts

(TCO 1) Which of the following combines the concepts of accounting income and corporate finance to measure whether the company's operations have increased stockholder wealth?

Gross profit margin

Earnings per share

Economic value added

Price/earnings ratio