ACCT 210 Chpt.12 Questions and Answers | July Update
4 views 0 purchase
Course
Accounting and Finance
Institution
Accounting And Finance
ACCT 210 Chpt.12
Questions and Answers | July Update
A vertical analysis is best used to make comparisons between multiple companies. ** Answ** True
In vertical analysis of the income statement, we usually express each income statement item as a percentage of: ** Answ** Sales
...
ACCT 210 Chpt.12
Questions and Answers | July Update
A vertical analysis is best used to make comparisons between multiple companies. **
Answ** True
In vertical analysis of the income statement, we usually express each income statement
item as a percentage of: ** Answ** Sales
Provided below is summary income statement data for Freedom Corporation.
Amount
Sales $800,000
Cost of goods sold 350,000
Operating expenses 180,000
Other expense 30,000
Income tax expense 20,000
Net income $220,000
Using vertical analysis, what percentage is applicable to Cost of Goods Sold? **
Answ** 43.8%
In vertical analysis of the balance sheet, we usually express each balance sheet item as
a percentage of: ** Answ** Total assets
Provided below is a partial balance sheet for Goodwin Corporation.
Amount
Cash $500,000
Accounts receivable 400,000
Inventory 300,000
Long-term assets 900,000
Total assets $2,100,000
Using vertical analysis, what percentage is applicable to Inventory? ** Answ**
14.3%
We use horizontal analysis to _____. ** Answ** analyze trends in financial
statement data for a company over time
Which of the following is the denominator in the formula used to calculate the
percentage increase or decrease of an item in horizontal analysis? ** Answ** Prior-
year amount
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller smartchoices. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.89. You're not tied to anything after your purchase.
