Multiple Choice Question 37

The calculations are the easy part of a horizontal analysis, the challenge is

gathering the data.

interpreting the results.

both gathering the data and interpreting the results.

Multiple Choice Question 50

The formula for preparing a common-size income statement is

Individual Revenue or Expense Account Balance Operating Income

Individual Revenue or Expense Account Balance Net Income

Individual Revenue or Expense Account Balance Gross Profit

Individual Revenue or Expense Account Balance Net Sales Revenue

neither gathering the data nor interpreting the results.

Multiple Choice Question 53

On a common-size balance sheet, notes receivable is shown as a percentage of

total liabilities.

current liabilities.

total assets.

total stockholders equity.

Multiple Choice Question 91

The debt to equity ratio measures the amount of financing provided by creditors relative to

equity earned through from operations.

equity provided by retained earnings.

equity provided by owners.

equity earned through dividends.