Question Details

Comparative balance sheets are usually prepared for 


1. Under which of the following cases may a percentage change be computed?
a. The trend of the amounts is decreasing but all amounts are positive.
b. There is no amount in the base year.
c. There is a negative amount in the base year and a negative amount in the subsequent
year.
d. There is a negative amount in the base year and a positive amount in the subsequent
year.
2. Horizontal analysis is a technique for evaluating a series of financial statement data over a
period of time
a. that has been arranged from the highest number to the lowest number.
b. that has been arranged from the lowest number to the highest number.
c. to determine which items are in error.
d. to determine the amount and/or percentage increase or decrease that has taken
place.
3. Horizontal analysis is a technique for evaluating financial statement data
a. within a period of time.
b. over a period of time.
c. on a certain date.
d. as it may appear in the future.
4. Assume the following sales data for a company:
2003 $1,800,000
2002 1,500,000
2001 1,000,000
If 2001 is the base year, what is the percentage increase in sales from 2001 to 2003?
a. 100%
b. 180%
c. 80%
d. 55.5%
5. Comparative balance sheets are usually prepared for 
a. one year.
b. two years.
c. three years.
d. four years.




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