Question : 94.To compute trend percentages the analyst should: A. Select a base period, : 1258420

 

94.To compute trend percentages the analyst should:   

A. Select a base period, assign each item in the base period statement a weight of 100%, and then express financial numbers from other periods as a percent of their base period number.

B. Subtract the analysis period number from the base period number.

C. Subtract the base period amount from the analysis period amount, divide the result by the analysis period amount, then multiply that amount by 100.

D. Compare amounts across industries using Dun and Bradstreet.

E. Compare amounts to a competitor.

95.Comparative financial statements in which each individual financial statement amount is expressed as a percentage of a base amount are called:   

A. Asset comparative statements.

B. Percentage comparative statements.

C. Common-size comparative statements.

D. Sales comparative statements.

E. General-purpose financial statements.

96.Common-size statements:   

A. Reveal changes in the relative importance of each financial statement item to a base amount.

B. Do not emphasize the relative importance of each item.

C. Compare financial statements over time.

D. Show the dollar amount of change for financial statement items.

E. Reveal patterns in data across successive periods.

97.The common-size percent is computed by:   

A. Dividing the analysis amount by the base amount.

B. Dividing the base amount by the analysis amount.

C. Dividing the analysis amount by the base amount and multiplying the result by 100.

D. Dividing the base amount by the analysis amount and multiplying the result by 1,000.

E. Subtracting the base amount from the analysis amount and multiplying the result by 100.

98.A corporation reported cash of $14,000 and total assets of $178,300 on its balance sheet. Its common-size percent for cash equals:   

A. .0785%.

B. 7.85%.

C. 12.73%.

D. 1273%.

E. 7850%.

99.A corporation reported cash of $27,000 and total assets of $461,000 on its balance sheet. Its common-size percent for cash equals:   

A. 17.1%.

B. 58.6%.

C. 100%.

D. 5.86%.

E. 1707%.

100.Current assets minus current liabilities is:   

A. Profit margin.

B. Financial leverage.

C. Current ratio.

D. Working capital.

E. Quick assets.

101.Jones Corp. reported current assets of $193,000 and current liabilities of $137,000 on its most recent balance sheet. The working capital is:   

A. 141%.

B. 71%.

C. ($56,000).

D. $56,000.

E. 41%.

102.Jones Corp. reported current assets of $193,000 and current liabilities of $137,000 on its most recent balance sheet. The current ratio is:    

A. 1.4:1.

B. 0.7:1.

C. 0.3:1.

D. 1:1.

E. 0.4:1.

103.Jones Corp. reported current assets of $193,000 and current liabilities of $137,000 on its most recent balance sheet. The current assets consisted of $62,000 Cash; $43,000 Accounts Receivable; and $88,000 of Inventory. The acid-test (quick) ratio is:    

A. 1.4:1.

B. 0.77:1.

C. 0.54:1.

D. 1:1.

E. 0.64:1.

 

 

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