ACC 561 Week 2 Knowledge Check 100% score
geniusy_2006
1. The relationship between current assets and current liabilities is important in evaluating a company's
2. Which of the following is a measure of liquidity?
3. Current assets divided by current liabilities is known as the
4. Danner Corporation reported net sales of $600,000, $680,000, and $800,000 in the years 2011, 2012, and 2013, respectively. If 2011 is the base year, what percentage do 2013 sales represent of the base?
5. In analyzing financial statements, horizontal analysis is a
6. Comparative balance sheets
7. Assume the following cost of goods sold data for a company:
2013 | $1,500,000 |
2012 | 1,200,000 |
2011 | 1,000,000 |
If 2011 is the base year, what is the percentage increase in cost of goods sold from 2011 to 2013?
8. Comparisons of data within a company are an example of the following comparative basis:
9. The following schedule is a display of what type of analysis?
| Amount | Percent |
Current assets | $100,000 | 25% |
Property, plant, and equipment | 300,000 | 75% |
Total assets | $400,000 | 100% |
10. A common measure of profitability is the
11. Which one of the following would be considered a long-term solvency ratio?
12. The current ratio is
13. Richards, Inc. has the following income statement (in millions):
RICHARDS, INC. | |
Income Statement | |
For the Year Ended December 31, 2012 | |
Net Sales | $180 |
Cost of Goods Sold | 60 |
Gross Profit | 120 |
Operating Expenses | 75 |
Net Income | $ 45 |
Using vertical analysis, what percentage is assigned to net income?
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