ACC/561 ACC 561 Week 2 WileyPLUS Practice Quiz

Question 1
The relationship between current assets and current liabilities is important in evaluating a company-
Question 2
Which of the following is a measure of liquidity?
Question 3
Current assets divided by current liabilities is known as the
Question 4
Danner Corporation reported net sales of $600,000, $680,000, and $800,000 in the years 2011, 2012, and 2013, respectively. If 2011 is the base year, what percentage do 2013 sales represent of the base?
Question 5
In analyzing financial statements, horizontal analysis is a
Question 6
Comparative balance sheets
Question 7
Assume the following cost of goods sold data for a company:
2013 $1,500,000
2012 1,200,000
2011 1,000,000
If 2011 is the base year, what is the percentage increase in cost of goods sold from 2011 to 2013?
Question 8
Comparisons of data within a company are an example of the following comparative basis:
Question 9
The following schedule is a display of what type of analysis?
Amount Percent
Current assets $100,000 25%
Property, plant, and equipment 300,000 75%
Total assets $400,000 100%
Question 10
A common measure of profitability is the
Question 11
Which one of the following would be considered a long-term solvency ratio?
Question 12
The current ratio is
Question 13
Richards, Inc. has the following income statement (in millions):
RICHARDS, INC.
Income Statement
For the Year Ended December 31, 2012
Net Sales $180
Cost of Goods Sold 60
Gross Profit 120
Operating Expenses 75
Net Income $ 45
Using vertical analysis, what percentage is assigned to net income?