ACC/561 ACC 561 Week 2 WileyPLUS Practice Quiz (SCORE 13/13) - 75721

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Question 1

The relationship between current assets and current liabilities is important in evaluating a company’s

Question 2

Which of the following is a measure of liquidity?

Question 3

Current assets divided by current liabilities is known as the

Question 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?

Question 5

In analyzing financial statements, horizontal analysis is a

Question 6

Comparative balance sheets

Question 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?

Question 8

Comparisons of data within a company are an example of the following comparative basis:

Question 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%

Question 10

A common measure of profitability is the

Question 11

Which one of the following would be considered a long-term solvency ratio?

Question 12

The current ratio is

Question 13

Richards, Inc. has the following income statement (in millions):


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?