19

1. When an item has a value in the base period and zero in the analysis period, the decrease is 0 percent.
2. True
3. False

2.8 points

QUESTION 20

1. Measures taken from a selected competitor or a group of competitors are often excellent standards of comparison for analysis.
2. True
3. False

2.8 points

QUESTION 21

1. Debt financing is considered riskier than equity financing because of its required payments of interest and principal.
2. True
3. False

2.8 points

QUESTION 22

1. Information to prepare the statement of cash flows usually comes from (a) comparative balance sheets, (b) current income statement, and (c) additional information.
2. True
3. False

2.8 points

QUESTION 23

1. Horizontal analysis:
2. Is the presentation of financial ratios.Is a tool used to evaluate financial statement items relative to industry statistics.Is a method used to evaluate changes in financial data across time.Evaluates financial data across industries.Is also called vertical analysis.

2.8 points

QUESTION 24

1. Dividing ending inventory by cost of goods sold and multiplying the result by 365 is the:
2. Inventory turnover ratio.Total asset turnover.Profit margin.Days' sales in inventory.Current ratio.

2.8 points

QUESTION 25

1. When an item has a value in the base period and zero in the analysis period, the decrease is 100 percent.
2. True
3. False