(TCO 1) Common-size analysis is also known as(Points : 3) trend analysis. ratio analysis. vertical analysis. matrix analysis.

Question 5. 5. (TCO 1) A financial statement that shows each item as a percentage of one key item on the statement is referred to as(Points : 3)

benchmarking. common-size statement. horizontal analysis. statement of cash flows.

Question 6. 6. (TCO 1) When benchmarking financial statements of two key competitors, the gross margin of Company A is expressed as a percentage of(Points : 3)

the total gross margins of Companies A and B. Company B's gross margin. a common standard for both Company A and Company B. Company A's sales.

Question 7. 7. (TCO 1) On a statement of cash flows of a struggling company, net income would ordinarily be(Points : 3)

less than depreciation expense. more than depreciation expense. greater than cash provided by operating activities. more than cash provided by operating activities.

Question 8. 8. (TCO 1) On a statement of cash flows, which is considered an investing activity?(Points : 3)

Depreciation Increase in inventory Sale of securities Repayment of debt

Question 9. 9. (TCO 1) The ratio that provides an estimate of the number of days, on average, that it takes for customers to pay their account is the(Points : 3)

days' sales in receivables current ratio. accounts receivable turnover. acid-test ratio.

Question 10.10. (TCO 1) Which of the following combines the concepts of accounting income and corporate finance to measure whether the company's operations have increased stockholder wealth?(Points : 3)

Gross profit margin Earnings per share Economic value added Price/earnings ratio