1 In performing vertical analysis, the base for inventory is A total current assets B total liabilities and stockholders' equity C total cash and cash equivalents D total assets 2 Expressing cash and cash equivalents as a percentage of total assets is an example of A ratio analysis B horizontal analysis C economic value added D vertical analysis 3 On a statement of cash flows, activities that affect longminusterm assets are classified as A financing activities B stockholders' equity activities C investing activities D operating activities 4 Which of the following is typically used as the base in a vertical analysis of an income statement A gross profit B operating income C net income D net sales 5 On the statement of cash flows, financing activities involve A acquiring longterm assets B lending money C borrowing by signing a longterm note D purchasing investments

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Question: 1.In performing vertical analysis, the base for inventory is: A. total current assets. B. total liabilities and stockholders' equity. C. total cash and cash equivalents.

1.In performing vertical analysis, the base for inventory is:

total current assets.

total liabilities and stockholders' equity.

total cash and cash equivalents.

total assets.

2.Expressing cash and cash equivalents as a percentage of total assets is an example of:

ratio analysis.

horizontal analysis.

economic value added.

vertical analysis.

3.On a statement of cash flows, activities that affect longminusterm

assets are classified as:

financing activities.

stockholders' equity activities.

investing activities.

operating activities.

4.Which of the following is typically used as the base in a vertical analysis of an income statement?

gross profit

operating income

net income

net sales

5.On the statement of cash flows, financing activities involve:

acquiring longterm assets.

lending money.

borrowing by signing a longterm note.

purchasing investments.

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