QUESTION 8

1. When preparing a vertical analysis for an income statement the denominator would be net sales

   True

   False

2.5 points

QUESTION 9

1. When preparing a vertical analysis for the balance sheet the base would be?

   		Current assets
   		Total assets
   		Net income
   		Sales revenue

2.5 points

QUESTION 10

1. When preparing financial statements in Excel you would start with

   		Balance sheet
   		Income statement
   		Equity statement
   		Trial balance

2.5 points

QUESTION 11

1. The Scenario Manager allows users to store only one scenario at a time.

   True

   False

2.5 points

QUESTION 12

1. The break-even point is the level of sales (in units or dollars) that causes profits, however, measured, to be equal to zero.

   True

   False

2.5 points

QUESTION 13

1. Operating leverage is similar to financing leverage but the fixed costs we are interested in are fixed financing costs such as interest expense.

   True

   False

2.5 points

QUESTION 14

1. As sales increase above the break-even point, leverage will increase regardless of the measure being used.

   True

   False