Question Details

The type of analysis that is concerned with the relationships 



1.	In vertical analysis, line items on the income statement are generally expressed as a percentage of
a.	net income.
b.	net sales.
c.	cost of goods sold.
d.	total assets.


	

	2.	Vertical analysis is a technique that expresses each item in a financial statement
a.	in dollars and cents.
b.	as a percent of the item in the previous year.
c.	as a percent of a base amount.
d.	starting with the highest value down to the lowest value.


	
	3.	In vertical analysis
a.	a base amount is required.
b.	a base amount is optional.
c.	the same base is used across all financial statements analyzed.
d.	the results of the horizontal analysis are necessary inputs for performing the analysis.


	
	4.	The type of analysis that is concerned with the relationships among the components of the financial statements is to prepare a
a.	vertical analysis.
b.	trend analysis.
c.	profitability analysis.
d.	ratio analysis.


	

	5.	Horizontal analysis is analysis
a.	of percentage changes over several years.
b.	in which all items are presented as a percentage of one selected item on a financial statement.
c.	in which a statistic is calculated for the relationship between two items on a single financial statement or for two items on different financial statements.
d.	of all ratios that increased or decreased over past accounting periods.




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