9. When analyzing financial statements, besides reviewing data year over year for comparisons, the analyst should also compare the data to_________________________________________

10. Give an example of separation of duties in the accounting department of a small business _________________________________________________________________________________________________________________

11. Explain the meaning of rationalization with respect to internal control and the Fraud Triangle ________________________________________________________________________________________________________________

12. How can a business owner with very few employees implement internal controls? a. Due to small number of employees it is not feasible. b. Rotate job duties among employees. c. Hire a CPA to monitor transactions weekly.

13. The Debt to Equity ratio calculation measures a. The ability of the company to pay its current obligations b. The amount of Assets that are financed by debt c. The amount of capital invested by the owners relative to the debt of the company

14. The Earnings Quality ratio calculation measures how much of the net income is converted to cash. TRUE FALSE