1. A comparison of the amounts for the same item in financial statements of two or more periods is called

a) Vertical analysis

b) Return on total assets

c) Earnings per share

d) Horizontal analysis

2. Dividing total current assets by total current liabilities is the calculation for the

a) Current ratio

b) Return on investment

c) Quick or acid-test ratio

d) Ratio of liabilities to owner's equity

3. Dividing net sales on account by the average amount of net accounts receivable is the Calculation for the

a) Accounts receivable turnover

b) Working capital turnover

c) Merchandise inventory turnover

d) Plant and equipment turnover

4. Merchandise inventory turnover measures the relationship between

a) Assets and current liabilities

b) Merchandise inventory and current liabilities

c) Expenses and merchandise inventory

d) Sales and inventory

5. Dividing costs of goods sold by the average of merchandise inventory is the calculation for the

a) Accounts receivable turnover

b) Working capital turnover

c) Merchandise inventory turnover

d) Plant and equipment turnover

Answer rating: 100% (QA)

1 d Horizontal analysis 2 ... View the full answer