Multiple choice

1. Prepare a trend analysis from the following sales, assuming a base year 

07. Round to

the nearest whole percent.

2010 2009 2008 2007

$25,000 $40,000 $45,000 $50,000

A. 2%, 1.25%, 1.10%, 1.0% 

B. 25%, 40%, 45%, 100% 

C. 50%, 80%, 90%, 1.00%

D. 50%, 80%, 90%, 100%

For questions 25–28, use the following amounts.

Total current assets (CA) $20,000

Accounts receivable (AR) $10,000

Current liabilities (CL) $11,000

Inventory (INV) $4,000

Net sales $30,000

Total assets $25,000

Net income $5,000

2. Calculate current ratio.

A. 1.82 

B. 1.80 

C. 1.28

D. .182

3. Calculate acid test.

A. 1.52 

B. 1.45 

C. .152

D. .145

4. When a bond is selling for more than its face value, it’s selling at a

A. coupon rate. 

B. premium. 

C. discount.

D. debenture