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Financial Statement Analysis Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Which of these is NOT true regarding the equity ratio?

Question 2 2. A horizontal analysis can be done with _____ or _____.

Question 3 3. Choose the BEST answer to explain the difference between solvency and liquidity.

Question 4 4. A company that's using horizontal analysis can do so using which type of financial statements?

Question 5 5. When an accountant calculates different parts of a financial statement in terms of a percentage of the total amount, the accountant is doing a _____.

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Question 6 6. If our income statement shows sales of $1 million and costs of goods sold at $300,000, a vertical analysis shows the cost of goods sold as _____.

Question 7 7. Which answer explains the analysis of the debt ratio?

Question 8 8. When an accountant compares revenues or liabilities over two different quarters, the accountant is doing a:

Question 9 9. If you're looking at the number of dollars left at the end of a quarter, and you're comparing that to other quarters, you're doing what type of horizontal analysis?

Question 10 10. Debt to equity ratio is calculated by _____.

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Question 11 11. If a business has $100,000 in total assets, but also has $40,000 in liabilities and $60,000 in equity, what is the vertical analysis of total liabilities and equity?

Question 12 12. If you're comparing revenues from two different years, and you come up with a 15% difference, you're doing what type of horizontal analysis?

Question 13 13. Which ratio measures the leverage of a company?

Question 14 14. If a business has $100,000 in total assets, which includes $35,000 in cash, $10,000 in inventory, and $55,000 in accounts receivable, what is the vertical analysis of total assets?

Question 15 15. Vertical analysis is typically performed on what financial statements?

Financial Statement Analysis Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Accounting 301: Applied Managerial Accounting  /  Business Courses
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