Question : 51. Which of the following below generally the most useful in : 1224859

51. Which of the following below generally is the most useful in analyzing companies of different sizes? A. Comparative statementsB. Common-size financial statementsC. Price-level accountingD. Audit report

52. The percent of fixed assets to total assets is an example of: A. vertical analysis.B. solvency analysis.C. profitability analysis.D. horizontal analysis.

53. What type of analysis is indicated by the following? 

Increase (Decrease)

2012

2011

Amount

Percent

Current assets

$   450,000

$   500,000

($  50,000)

-10%

Fixed assets

1,800,000

1,500,000

300,000

20%

A. Vertical analysisB. Horizontal analysisC. Liquidity analysisD. Common-size analysis

54. In a common-size financial statement, which of the following is given a percentage of 100 percent? A. Total liabilitiesB. Net incomeC. Costs of goods soldD. Total assets

55. In performing a vertical analysis, the base for cost of goods sold is: A. total selling expenses.B. net sales.C. total expenses.D. total revenues.

56. The independent auditor’s report does which of the following? A. Describes which financial statements are covered by the auditB. Gives the auditor’s opinion regarding the fairness of the financial statementsC. Summarizes what the auditor didD. States that the financial statements are truthful

57. Bloom’s Garden Center CompanySelected data from the financial statements of Bloom’s Garden Center are provided below. 

2012

2011

Accounts receivable

$  70,000

$  56,000

Inventory

15,000

20,000

Total assets

450,000

380,000

Net sales

400,000

300,000

Cost of goods sold

200,000

180,000

Refer to the selected data provided for Bloom’s Garden Center. Which of the following would result from a horizontal analysis of Bloom’s balance sheet? A. Accounts receivable increased $14,000 or 25% during 2012.B. Accounts receivable is around five times larger than inventory in 2012.C. Accounts receivable is 15.6% of total assets in 2012.D. The accounts receivable turnover ratio is 6.35 times in 2012.

58. Refer to the selected data provided for Bloom’s Garden Center. Which of the following would result from a horizontal analysis of Bloom’s income statement? A. Net sales increased $100,000 during 2012, or 33.33% of the 2011 amount.B. Gross profit is 50% of net sales for 2012.C. Accounts receivable is 15.6% of total assets in 2012.D. The accounts receivable turnover ratio is 6.35 times in 2012.

59. Refer to the selected data provided for Bloom’s Garden Center. Which of the following would result from a horizontal analysis of Bloom’s income statement? A. Cost of goods sold is 50% of net sales for 2012.B. Gross profit is 50% of net sales for 2012.C. Cost of goods sold increased $20,000 or 11.1% during 2012.D. Inventory decreased $5,000 or 25% during 2011.

60. Refer to the selected data provided for Bloom’s Garden Center. Which of the following would result from a vertical analysis of Bloom’s income statement? A. The accounts receivable turnover ratio is 6.35 in 2012.B. Gross profit is 50% of net sales for 2012.C. Cost of goods sold increased $20,000 or 11.11% during 2012.D. Net sales is 88.9% of total assets for 2012.