# ACC 561 ACC561 ACC/561 Week 2 Quiz (13/13) (Most recent Updated : 7/11/2014) - 68859

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

Which of the following is a measure of liquidity?

Current assets divided by current liabilities is known as the

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?

In analyzing financial statements, horizontal analysis is a

Comparative balance sheets

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?

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

The following schedule is a display of what type of analysis?

A common measure of profitability is the

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

The current ratio is

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?

Solution Description

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

Which of the following is a measure of liquidity?

Current assets divided by current liabilities is known as the

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?

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