Deck 16: How to Read, Analyze, and Interpret Financial Reports

Question 1

Net purchases are the cost of purchases minus purchase discounts minus purchase returns and allowances.

Answer 1

True

Question 2

Net income is equal to gross profit minus operating expenses.

Answer 2

True

Question 3

A comparative statement contains data for less than two successive accounting periods.

Answer 3

False

Question 4

Income statements are prepared only once a year.

Question 5

Reductions in the selling price for early payment are called sales returns and allowances.

Question 6

The computer is the only tool needed in monitoring a business's financial condition.

Question 7

Cash is recorded on the income statement.

Question 8

Horizontal analysis can analyze balance sheets for two or more periods.

Question 9

Vertical analysis cannot be done on a comparative statement.

Question 10

A balance sheet shows the financial condition of a business at a particular date.

Question 11

Vertical analysis need not be done only on comparative reports since calculations were within each period of time.

Question 12

Land does not depreciate.

Question 13

Retained earnings are the same as cash.

Question 14

Assets represent things of value owed by the business.

Question 15

Cash is a liability.

Question 16

The income statement shows the financial condition of a business over a period of time.

Question 17

Cost of merchandise sold is equal to beginning inventory minus net purchases minus ending inventory.

Question 18

Assets, liabilities, capital, and revenues are listed on the balance sheet.

Question 19

Horizontal analysis need not be done using comparative reports.

Question 20

Assets that last longer than one year are called plant and equipment.

Question 21

In the acid test ratio, inventory and prepaid expenses are excluded.

Question 22

When each asset is analyzed as a percent of total assets for a single period, this is known as:

A)Horizontal analysis
B)Comparative analysis
C)Ratio analysis
D)Vertical analysis
E)None of these

Question 23

Selecting a base year and expressing each amount as a percent of the base year amount is called:

A)Trend analysis
B)Horizontal analysis
C)Vertical analysis
D)Ratio analysis
E)None of these

Question 24

The acid test ratio includes:

A)Current Assets
B)Prepaid Expenses
C)Current Liabilities
D)Inventory
E)All of these

Question 25

Trend analysis expresses each number as a percent of the base year.

Question 26

A return on equity of 17% implies which of the following?

A)For every 17 cents invested, a return of $1.00 results
B)For every $1.00 invested, a return of 17 cents results
C)For every $1.17 invested, a return of 17 cents results
D)For every $10.00 invested, a return of $1.17 results
E)None of the above

Question 27

A current ratio is calculated by current assets times current liabilities.

Question 28

The return on equity ratio looks at how effectively assets are being utilized.

Question 29

Debt management ratios show a company how well its assets are managed.

Question 30

In horizontal analysis the oldest year is the base.

Question 31

The balance sheet lists:

A)Assets, liabilities, expenses
B)Assets, liabilities, equity
C)Assets, revenues, expenses
D)Assets, revenues, equity
E)None of these

Question 32

A ratio of 4:5:2 mean that out of 11 parts it is divided up as 4/11, 5/11, 2/11.

Question 33

Which of the following is not a current asset?

A)Cash
B)Building
C)Prepaid expense
D)Accounts receivable
E)None of these

Question 34

A relationship of one number to another is a ratio.

Question 35

Which one is not used to calculate net sales?

A)Purchases
B)Sales discount
C)Sales returns and allowance
D)Gross sales
E)None of these

Question 36

"Could we speed up our collections?" could be one question raised about the average day's collection ratio.

Question 37

In using horizontal analysis, comparative reports are:

A)Always used
B)Never used
C)Infrequently used
D)Often used
E)None of these

Question 38

From 2016 to 2017, accounts receivable increased from $4,000 to $4,800. The percent increase is:

A)120%
B)162/3%
C)20%
D)55%
E)None of these

Question 39

The asset turnover is gross sales divided by total assets.

Question 40

Cost of merchandise sold equals beginning inventory:

A)Plus net purchases plus ending inventory
B)Plus net purchases minus ending inventory
C)Minus net purchases minus ending inventory
D)Minus net purchases plus ending inventory
E)None of these

Question 41

Given the following for a company: sales $48,000, sales returns and allowances $6,000, operating expenses $6,200, beginning inventory $900, net purchases $9,100, ending inventory $2,300, find the company's gross profit.

A)$34,000
B)$43,000
C)$34,003
D)$34,300
E)None of these

Question 42

The asset turnover from the following is (round to nearest tenth): $$\begin{array} { | l | r | } \hline \text { Gross sales } & \$ 70,000 \\\hline \text { Sales discount } & \$ 2,500 \\\hline \text { Sales returns and allowances } & \$ 8,000 \\\hline \text { Total assets } & \$ 39,000 \\\hline\end{array}$$

A)1.7
B)1.5
C)1.9
D)1.6
E)None of these

Question 43

Jay Corporation has earned $175,900 after tax. The accountant calculated the return on equity as 12.5%. Jay Corporation's stockholders' equity to the nearest dollar is:

A)$140,720
B)$14,720
C)$1,407,200
D)$140,720,000
E)None of these

Question 44

Complete the current ratio for the following: Total current assets = $12,000; current liabilities = $10,000

A)1.5
B)1.7
C)0.7
D)1.2
E)None of these

Question 45

In analyzing the income statement of Bob Company, cost of goods sold decreased by 8.2% from 2016 to 2017. If the cost of goods sold was $19,000 in 2016, what was it in 2017? (Rounded to the nearest cent.)

A)$17,442
B)$1,558
C)$20,697.17
D)$20,796.71
E)None of these

Question 46

Complete the horizontal analysis below: (round to the nearest tenth percent if applicable) $$\begin{array} { | c | c | c | c | } \hline \text { Year 2 } & \text { Year 1 } & \text { Amount } + & \text { Percent Change } \\\hline \$ 88,338 & \$ 92,147 & ? & ? \\\hline\end{array}$$

A)($3,809), ?4.1%
B)$3,809, 4.1%
C)$180,485, 51.1%
D)$8,300, 15%
E)None of these

Question 47

Match the following terms with their definitions.

-Long-term liabilities

A)Uses a base year
B)Inventory and prepaid expenses are subtracted
C)A liability
D)Net sales ÷ total assets
E)Actual sale after returns on discounts
F)Current assets ÷ current liabilities
G)What we owe creditors
H)Data placed side by side
I)Cash, supplies
J)Obligations due within one year
K)Cost of goods for resale
L)Obligations that are not due for at least one year
M)Total this period is compared by amount of percent to same total last period
N)Part of stockholders' equity
O)What customers owe
P)Dollars not shown
Q)Paid in advance
R)Profit
S)Revenues and expense for a specific period of time
T)Prepared as of a particular date
U)Beginning inventory plus new purchases - ending inventory
V)True cost of purchases
W)Includes no plant and equipment assets
X)Sales - cost of goods sold
Y)Each liability and equity is analyzed as a percent of the total

Question 48

The asset turnover of Ryan Company is 7.2. The total assets of Ryan are $88,000. Ryan's net sales were:

A)$6,336
B)$63,360
C)$633,000
D)$633,600
E)None of these

Question 49

Complete the trend analysis for sales for year 3 (Round to nearest tenth percent): $$\begin{array} { | l | l | l | l | } \hline \text { Year 4 } & \text { Year 3 } & \text { Year 2 } & \text { Year 1 (Base yr) } \\\hline \$ 782,143 & \$ 655,211 & \$ 605,000 & \$ 646,133 \\\hline\end{array}$$

A)103.9%
B)101.4%
C)109.3%
D)110.2%
E)None of these

Question 50

Match the following terms with their definitions.

-Cost of merchandise sold

A)Uses a base year
B)Inventory and prepaid expenses are subtracted
C)A liability
D)Net sales ÷ total assets
E)Actual sale after returns on discounts
F)Current assets ÷ current liabilities
G)What we owe creditors
H)Data placed side by side
I)Cash, supplies
J)Obligations due within one year
K)Cost of goods for resale
L)Obligations that are not due for at least one year
M)Total this period is compared by amount of percent to same total last period
N)Part of stockholders' equity
O)What customers owe
P)Dollars not shown
Q)Paid in advance
R)Profit
S)Revenues and expense for a specific period of time
T)Prepared as of a particular date
U)Beginning inventory plus new purchases - ending inventory
V)True cost of purchases
W)Includes no plant and equipment assets
X)Sales - cost of goods sold
Y)Each liability and equity is analyzed as a percent of the total

Question 51

Given gross sales of $40,000 and sales returns and allowances of $6,000, what are the net sales?

A)$50,000
B)$46,000
C)$34,500
D)$34,000
E)None of these

Question 52

Lee Company has a current ratio of 2.65. The acid test ratio is 2.01. The current liabilities of Lee are $45,000. The dollar amount of merchandise inventory is (assume no prepaid expenses):

A)$28,008
B)$28,800
C)$90,450
D)$90,540
E)None of these

Question 53

Match the following terms with their definitions.

-Prepaid expense

A)Uses a base year
B)Inventory and prepaid expenses are subtracted
C)A liability
D)Net sales ÷ total assets
E)Actual sale after returns on discounts
F)Current assets ÷ current liabilities
G)What we owe creditors
H)Data placed side by side
I)Cash, supplies
J)Obligations due within one year
K)Cost of goods for resale
L)Obligations that are not due for at least one year
M)Total this period is compared by amount of percent to same total last period
N)Part of stockholders' equity
O)What customers owe
P)Dollars not shown
Q)Paid in advance
R)Profit
S)Revenues and expense for a specific period of time
T)Prepared as of a particular date
U)Beginning inventory plus new purchases - ending inventory
V)True cost of purchases
W)Includes no plant and equipment assets
X)Sales - cost of goods sold
Y)Each liability and equity is analyzed as a percent of the total

Question 54

Given the following for a company: sales $80,000, beginning inventory $5,000, purchases $21,800, purchase discounts $790, ending inventory $5,100, find the company's cost of merchandise sold.

A)$21,560
B)$20,190
C)$20,910
D)$21,650
E)None of these

Question 55

Match the following terms with their definitions.

-Income statement

A)Uses a base year
B)Inventory and prepaid expenses are subtracted
C)A liability
D)Net sales ÷ total assets
E)Actual sale after returns on discounts
F)Current assets ÷ current liabilities
G)What we owe creditors
H)Data placed side by side
I)Cash, supplies
J)Obligations due within one year
K)Cost of goods for resale
L)Obligations that are not due for at least one year
M)Total this period is compared by amount of percent to same total last period
N)Part of stockholders' equity
O)What customers owe
P)Dollars not shown
Q)Paid in advance
R)Profit
S)Revenues and expense for a specific period of time
T)Prepared as of a particular date
U)Beginning inventory plus new purchases - ending inventory
V)True cost of purchases
W)Includes no plant and equipment assets
X)Sales - cost of goods sold
Y)Each liability and equity is analyzed as a percent of the total

Question 56

Match the following terms with their definitions.

-Current ratio

A)Uses a base year
B)Inventory and prepaid expenses are subtracted
C)A liability
D)Net sales ÷ total assets
E)Actual sale after returns on discounts
F)Current assets ÷ current liabilities
G)What we owe creditors
H)Data placed side by side
I)Cash, supplies
J)Obligations due within one year
K)Cost of goods for resale
L)Obligations that are not due for at least one year
M)Total this period is compared by amount of percent to same total last period
N)Part of stockholders' equity
O)What customers owe
P)Dollars not shown
Q)Paid in advance
R)Profit
S)Revenues and expense for a specific period of time
T)Prepared as of a particular date
U)Beginning inventory plus new purchases - ending inventory
V)True cost of purchases
W)Includes no plant and equipment assets
X)Sales - cost of goods sold
Y)Each liability and equity is analyzed as a percent of the total

Question 57

The total debt to total assets of Logan Company was 0.71. The total of Logan's assets was $270,000. The amount of total debt is:

A)$146,700
B)$191,700
C)$119,700
D)$461,700
E)None of these

Question 58

Given the following: $$\begin{array} { | c | c | c | c | } \hline & 2015 & 2016 & 2017 \\\hline \text { Sales } & \$ 400,000 & \$ 350,000 & \$ 470,000 \\\hline \text { Gross Profit } & - 100,000 & - 130,000 & - 140,000 \\\hline \text { Net Income } & \$ 300,000 & \$ 220,000 & \$ 230,000 \\\hline\end{array}$$ By trend analysis (base year is 2015), sales in 2017 to the nearest percent of the base year is:

A)117%
B)116%
C)118%
D)119%
E)None of these

Question 59

Complete the following vertical analysis of a balance sheet: $$\begin{array} { | c | c | c | } \hline & \text { Amount } & \text { Percent } \\\hline \text { Current assets } & \$ 15,751 & \mathrm {~A} \\\hline \text { Accounts Receivable } & \$ 10,888 & \mathrm {~B} \\\hline \text { Inventory } & \$ 97,125 & \mathrm { C } \\\hline \text { PPD expenses } & \$ 11,448 & \mathrm { D } \\\hline \text { Total assets } & \$ 135,212 & 100 \% \\\hline\end{array}$$ (Round to nearest tenth percent.)

A)11.6%, 8.1%, 71.8%, 8.5%
B)11.5%, 8.0%, 72%, 11.7%
C)13%, 8.6%, 80%, 12.7%
D)15%, 10.2%, 66.1%, 12.5%
E)None of these

Question 60

Bill's Pizza has an asset turnover of 3.5. The total assets of Bill's were $95,000. The net sales of Bill's Pizza is:

A)$27,142.85
B)$332,500.00
C)$271,428.50
D)$33,250.00
E)None of these

Question 61

Match the following terms with their definitions.

-Asset turnover

A)Uses a base year
B)Inventory and prepaid expenses are subtracted
C)A liability
D)Net sales ÷ total assets
E)Actual sale after returns on discounts
F)Current assets ÷ current liabilities
G)What we owe creditors
H)Data placed side by side
I)Cash, supplies
J)Obligations due within one year
K)Cost of goods for resale
L)Obligations that are not due for at least one year
M)Total this period is compared by amount of percent to same total last period
N)Part of stockholders' equity
O)What customers owe
P)Dollars not shown
Q)Paid in advance
R)Profit
S)Revenues and expense for a specific period of time
T)Prepared as of a particular date
U)Beginning inventory plus new purchases - ending inventory
V)True cost of purchases
W)Includes no plant and equipment assets
X)Sales - cost of goods sold
Y)Each liability and equity is analyzed as a percent of the total

Question 62

Match the following terms with their definitions.

-Gross profit

A)Uses a base year
B)Inventory and prepaid expenses are subtracted
C)A liability
D)Net sales ÷ total assets
E)Actual sale after returns on discounts
F)Current assets ÷ current liabilities
G)What we owe creditors
H)Data placed side by side
I)Cash, supplies
J)Obligations due within one year
K)Cost of goods for resale
L)Obligations that are not due for at least one year
M)Total this period is compared by amount of percent to same total last period
N)Part of stockholders' equity
O)What customers owe
P)Dollars not shown
Q)Paid in advance
R)Profit
S)Revenues and expense for a specific period of time
T)Prepared as of a particular date
U)Beginning inventory plus new purchases - ending inventory
V)True cost of purchases
W)Includes no plant and equipment assets
X)Sales - cost of goods sold
Y)Each liability and equity is analyzed as a percent of the total

Question 63

Match the following terms with their definitions.

-Merchandise inventory

A)Uses a base year
B)Inventory and prepaid expenses are subtracted
C)A liability
D)Net sales ÷ total assets
E)Actual sale after returns on discounts
F)Current assets ÷ current liabilities
G)What we owe creditors
H)Data placed side by side
I)Cash, supplies
J)Obligations due within one year
K)Cost of goods for resale
L)Obligations that are not due for at least one year
M)Total this period is compared by amount of percent to same total last period
N)Part of stockholders' equity
O)What customers owe
P)Dollars not shown
Q)Paid in advance
R)Profit
S)Revenues and expense for a specific period of time
T)Prepared as of a particular date
U)Beginning inventory plus new purchases - ending inventory
V)True cost of purchases
W)Includes no plant and equipment assets
X)Sales - cost of goods sold
Y)Each liability and equity is analyzed as a percent of the total

Question 64

Match the following terms with their definitions.

-Assets

A)Uses a base year
B)Inventory and prepaid expenses are subtracted
C)A liability
D)Net sales ÷ total assets
E)Actual sale after returns on discounts
F)Current assets ÷ current liabilities
G)What we owe creditors
H)Data placed side by side
I)Cash, supplies
J)Obligations due within one year
K)Cost of goods for resale
L)Obligations that are not due for at least one year
M)Total this period is compared by amount of percent to same total last period
N)Part of stockholders' equity
O)What customers owe
P)Dollars not shown
Q)Paid in advance
R)Profit
S)Revenues and expense for a specific period of time
T)Prepared as of a particular date
U)Beginning inventory plus new purchases - ending inventory
V)True cost of purchases
W)Includes no plant and equipment assets
X)Sales - cost of goods sold
Y)Each liability and equity is analyzed as a percent of the total

Question 65

Match the following terms with their definitions.

-Balance sheet

A)Uses a base year
B)Inventory and prepaid expenses are subtracted
C)A liability
D)Net sales ÷ total assets
E)Actual sale after returns on discounts
F)Current assets ÷ current liabilities
G)What we owe creditors
H)Data placed side by side
I)Cash, supplies
J)Obligations due within one year
K)Cost of goods for resale
L)Obligations that are not due for at least one year
M)Total this period is compared by amount of percent to same total last period
N)Part of stockholders' equity
O)What customers owe
P)Dollars not shown
Q)Paid in advance
R)Profit
S)Revenues and expense for a specific period of time
T)Prepared as of a particular date
U)Beginning inventory plus new purchases - ending inventory
V)True cost of purchases
W)Includes no plant and equipment assets
X)Sales - cost of goods sold
Y)Each liability and equity is analyzed as a percent of the total

Question 66

Match the following terms with their definitions.

-Net purchases

A)Uses a base year
B)Inventory and prepaid expenses are subtracted
C)A liability
D)Net sales ÷ total assets
E)Actual sale after returns on discounts
F)Current assets ÷ current liabilities
G)What we owe creditors
H)Data placed side by side
I)Cash, supplies
J)Obligations due within one year
K)Cost of goods for resale
L)Obligations that are not due for at least one year
M)Total this period is compared by amount of percent to same total last period
N)Part of stockholders' equity
O)What customers owe
P)Dollars not shown
Q)Paid in advance
R)Profit
S)Revenues and expense for a specific period of time
T)Prepared as of a particular date
U)Beginning inventory plus new purchases - ending inventory
V)True cost of purchases
W)Includes no plant and equipment assets
X)Sales - cost of goods sold
Y)Each liability and equity is analyzed as a percent of the total

Question 67

Match the following terms with their definitions.

-Horizontal analysis

A)Uses a base year
B)Inventory and prepaid expenses are subtracted
C)A liability
D)Net sales ÷ total assets
E)Actual sale after returns on discounts
F)Current assets ÷ current liabilities
G)What we owe creditors
H)Data placed side by side
I)Cash, supplies
J)Obligations due within one year
K)Cost of goods for resale
L)Obligations that are not due for at least one year
M)Total this period is compared by amount of percent to same total last period
N)Part of stockholders' equity
O)What customers owe
P)Dollars not shown
Q)Paid in advance
R)Profit
S)Revenues and expense for a specific period of time
T)Prepared as of a particular date
U)Beginning inventory plus new purchases - ending inventory
V)True cost of purchases
W)Includes no plant and equipment assets
X)Sales - cost of goods sold
Y)Each liability and equity is analyzed as a percent of the total

Question 68

Match the following terms with their definitions.

-Acid test

A)Uses a base year
B)Inventory and prepaid expenses are subtracted
C)A liability
D)Net sales ÷ total assets
E)Actual sale after returns on discounts
F)Current assets ÷ current liabilities
G)What we owe creditors
H)Data placed side by side
I)Cash, supplies
J)Obligations due within one year
K)Cost of goods for resale
L)Obligations that are not due for at least one year
M)Total this period is compared by amount of percent to same total last period
N)Part of stockholders' equity
O)What customers owe
P)Dollars not shown
Q)Paid in advance
R)Profit
S)Revenues and expense for a specific period of time
T)Prepared as of a particular date
U)Beginning inventory plus new purchases - ending inventory
V)True cost of purchases
W)Includes no plant and equipment assets
X)Sales - cost of goods sold
Y)Each liability and equity is analyzed as a percent of the total

Question 69

Match the following terms with their definitions.

-Current liabilities

A)Uses a base year
B)Inventory and prepaid expenses are subtracted
C)A liability
D)Net sales ÷ total assets
E)Actual sale after returns on discounts
F)Current assets ÷ current liabilities
G)What we owe creditors
H)Data placed side by side
I)Cash, supplies
J)Obligations due within one year
K)Cost of goods for resale
L)Obligations that are not due for at least one year
M)Total this period is compared by amount of percent to same total last period
N)Part of stockholders' equity
O)What customers owe
P)Dollars not shown
Q)Paid in advance
R)Profit
S)Revenues and expense for a specific period of time
T)Prepared as of a particular date
U)Beginning inventory plus new purchases - ending inventory
V)True cost of purchases
W)Includes no plant and equipment assets
X)Sales - cost of goods sold
Y)Each liability and equity is analyzed as a percent of the total

Question 70

Match the following terms with their definitions.

-Retained earnings

A)Uses a base year
B)Inventory and prepaid expenses are subtracted
C)A liability
D)Net sales ÷ total assets
E)Actual sale after returns on discounts
F)Current assets ÷ current liabilities
G)What we owe creditors
H)Data placed side by side
I)Cash, supplies
J)Obligations due within one year
K)Cost of goods for resale
L)Obligations that are not due for at least one year
M)Total this period is compared by amount of percent to same total last period
N)Part of stockholders' equity
O)What customers owe
P)Dollars not shown
Q)Paid in advance
R)Profit
S)Revenues and expense for a specific period of time
T)Prepared as of a particular date
U)Beginning inventory plus new purchases - ending inventory
V)True cost of purchases
W)Includes no plant and equipment assets
X)Sales - cost of goods sold
Y)Each liability and equity is analyzed as a percent of the total

Question 71

Match the following terms with their definitions.

-Net income

A)Uses a base year
B)Inventory and prepaid expenses are subtracted
C)A liability
D)Net sales ÷ total assets
E)Actual sale after returns on discounts
F)Current assets ÷ current liabilities
G)What we owe creditors
H)Data placed side by side
I)Cash, supplies
J)Obligations due within one year
K)Cost of goods for resale
L)Obligations that are not due for at least one year
M)Total this period is compared by amount of percent to same total last period
N)Part of stockholders' equity
O)What customers owe
P)Dollars not shown
Q)Paid in advance
R)Profit
S)Revenues and expense for a specific period of time
T)Prepared as of a particular date
U)Beginning inventory plus new purchases - ending inventory
V)True cost of purchases
W)Includes no plant and equipment assets
X)Sales - cost of goods sold
Y)Each liability and equity is analyzed as a percent of the total

Question 72

Match the following terms with their definitions.

-Comparative statements

A)Uses a base year
B)Inventory and prepaid expenses are subtracted
C)A liability
D)Net sales ÷ total assets
E)Actual sale after returns on discounts
F)Current assets ÷ current liabilities
G)What we owe creditors
H)Data placed side by side
I)Cash, supplies
J)Obligations due within one year
K)Cost of goods for resale
L)Obligations that are not due for at least one year
M)Total this period is compared by amount of percent to same total last period
N)Part of stockholders' equity
O)What customers owe
P)Dollars not shown
Q)Paid in advance
R)Profit
S)Revenues and expense for a specific period of time
T)Prepared as of a particular date
U)Beginning inventory plus new purchases - ending inventory
V)True cost of purchases
W)Includes no plant and equipment assets
X)Sales - cost of goods sold
Y)Each liability and equity is analyzed as a percent of the total

Question 73

Match the following terms with their definitions.

-Vertical analysis

A)Uses a base year
B)Inventory and prepaid expenses are subtracted
C)A liability
D)Net sales ÷ total assets
E)Actual sale after returns on discounts
F)Current assets ÷ current liabilities
G)What we owe creditors
H)Data placed side by side
I)Cash, supplies
J)Obligations due within one year
K)Cost of goods for resale
L)Obligations that are not due for at least one year
M)Total this period is compared by amount of percent to same total last period
N)Part of stockholders' equity
O)What customers owe
P)Dollars not shown
Q)Paid in advance
R)Profit
S)Revenues and expense for a specific period of time
T)Prepared as of a particular date
U)Beginning inventory plus new purchases - ending inventory
V)True cost of purchases
W)Includes no plant and equipment assets
X)Sales - cost of goods sold
Y)Each liability and equity is analyzed as a percent of the total

Question 74

Match the following terms with their definitions.

-Net sales

A)Uses a base year
B)Inventory and prepaid expenses are subtracted
C)A liability
D)Net sales ÷ total assets
E)Actual sale after returns on discounts
F)Current assets ÷ current liabilities
G)What we owe creditors
H)Data placed side by side
I)Cash, supplies
J)Obligations due within one year
K)Cost of goods for resale
L)Obligations that are not due for at least one year
M)Total this period is compared by amount of percent to same total last period
N)Part of stockholders' equity
O)What customers owe
P)Dollars not shown
Q)Paid in advance
R)Profit
S)Revenues and expense for a specific period of time
T)Prepared as of a particular date
U)Beginning inventory plus new purchases - ending inventory
V)True cost of purchases
W)Includes no plant and equipment assets
X)Sales - cost of goods sold
Y)Each liability and equity is analyzed as a percent of the total

Question 75

Match the following terms with their definitions.

-Current assets

A)Uses a base year
B)Inventory and prepaid expenses are subtracted
C)A liability
D)Net sales ÷ total assets
E)Actual sale after returns on discounts
F)Current assets ÷ current liabilities
G)What we owe creditors
H)Data placed side by side
I)Cash, supplies
J)Obligations due within one year
K)Cost of goods for resale
L)Obligations that are not due for at least one year
M)Total this period is compared by amount of percent to same total last period
N)Part of stockholders' equity
O)What customers owe
P)Dollars not shown
Q)Paid in advance
R)Profit
S)Revenues and expense for a specific period of time
T)Prepared as of a particular date
U)Beginning inventory plus new purchases - ending inventory
V)True cost of purchases
W)Includes no plant and equipment assets
X)Sales - cost of goods sold
Y)Each liability and equity is analyzed as a percent of the total

Question 76

Match the following terms with their definitions.

-Accounts payable

A)Uses a base year
B)Inventory and prepaid expenses are subtracted
C)A liability
D)Net sales ÷ total assets
E)Actual sale after returns on discounts
F)Current assets ÷ current liabilities
G)What we owe creditors
H)Data placed side by side
I)Cash, supplies
J)Obligations due within one year
K)Cost of goods for resale
L)Obligations that are not due for at least one year
M)Total this period is compared by amount of percent to same total last period
N)Part of stockholders' equity
O)What customers owe
P)Dollars not shown
Q)Paid in advance
R)Profit
S)Revenues and expense for a specific period of time
T)Prepared as of a particular date
U)Beginning inventory plus new purchases - ending inventory
V)True cost of purchases
W)Includes no plant and equipment assets
X)Sales - cost of goods sold
Y)Each liability and equity is analyzed as a percent of the total

Question 77

Match the following terms with their definitions.

-Trend analysis

A)Uses a base year
B)Inventory and prepaid expenses are subtracted
C)A liability
D)Net sales ÷ total assets
E)Actual sale after returns on discounts
F)Current assets ÷ current liabilities
G)What we owe creditors
H)Data placed side by side
I)Cash, supplies
J)Obligations due within one year
K)Cost of goods for resale
L)Obligations that are not due for at least one year
M)Total this period is compared by amount of percent to same total last period
N)Part of stockholders' equity
O)What customers owe
P)Dollars not shown
Q)Paid in advance
R)Profit
S)Revenues and expense for a specific period of time
T)Prepared as of a particular date
U)Beginning inventory plus new purchases - ending inventory
V)True cost of purchases
W)Includes no plant and equipment assets
X)Sales - cost of goods sold
Y)Each liability and equity is analyzed as a percent of the total

Question 78

Match the following terms with their definitions.

-Accounts receivable

A)Uses a base year
B)Inventory and prepaid expenses are subtracted
C)A liability
D)Net sales ÷ total assets
E)Actual sale after returns on discounts
F)Current assets ÷ current liabilities
G)What we owe creditors
H)Data placed side by side
I)Cash, supplies
J)Obligations due within one year
K)Cost of goods for resale
L)Obligations that are not due for at least one year
M)Total this period is compared by amount of percent to same total last period
N)Part of stockholders' equity
O)What customers owe
P)Dollars not shown
Q)Paid in advance
R)Profit
S)Revenues and expense for a specific period of time
T)Prepared as of a particular date
U)Beginning inventory plus new purchases - ending inventory
V)True cost of purchases
W)Includes no plant and equipment assets
X)Sales - cost of goods sold
Y)Each liability and equity is analyzed as a percent of the total

Question 79

Match the following terms with their definitions.

-Common size statement

A)Uses a base year
B)Inventory and prepaid expenses are subtracted
C)A liability
D)Net sales ÷ total assets
E)Actual sale after returns on discounts
F)Current assets ÷ current liabilities
G)What we owe creditors
H)Data placed side by side
I)Cash, supplies
J)Obligations due within one year
K)Cost of goods for resale
L)Obligations that are not due for at least one year
M)Total this period is compared by amount of percent to same total last period
N)Part of stockholders' equity
O)What customers owe
P)Dollars not shown
Q)Paid in advance
R)Profit
S)Revenues and expense for a specific period of time
T)Prepared as of a particular date
U)Beginning inventory plus new purchases - ending inventory
V)True cost of purchases
W)Includes no plant and equipment assets
X)Sales - cost of goods sold
Y)Each liability and equity is analyzed as a percent of the total

Question 80

Match the following terms with their definitions.

-Liabilities

A)Uses a base year
B)Inventory and prepaid expenses are subtracted
C)A liability
D)Net sales ÷ total assets
E)Actual sale after returns on discounts
F)Current assets ÷ current liabilities
G)What we owe creditors
H)Data placed side by side
I)Cash, supplies
J)Obligations due within one year
K)Cost of goods for resale
L)Obligations that are not due for at least one year
M)Total this period is compared by amount of percent to same total last period
N)Part of stockholders' equity
O)What customers owe
P)Dollars not shown
Q)Paid in advance
R)Profit
S)Revenues and expense for a specific period of time
T)Prepared as of a particular date
U)Beginning inventory plus new purchases - ending inventory
V)True cost of purchases
W)Includes no plant and equipment assets
X)Sales - cost of goods sold
Y)Each liability and equity is analyzed as a percent of the total