Unit 2 - Practice for Review

Unit 2 - Practice for Review - Unit 2: Financial Statement...

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Unformatted text preview: Unit 2: Financial Statement Analysis - Practice for Review 1. If comparative balance sheets indicate no liability for bonds payable on the preceding year and a liability of $330,000 on the current year, the increase of $330,000 can be stated as a 100% increase. (Points: 1) True False 2. Financial statements showing the current year's Financial data in one column and the preceding years' financial data in other columns are called horizontal statements. (Points: 1) True False 3. Comparable financial statements are designed to compare the financial statements of two or more corporations. (Points: 1) True False 4. A financial statement showing each item on the statement as a percentage of one key item on the statement is called a common-sized financial statement. (Points: 1) True False 5. The relationship of each asset item as a percent of total assets is an example of vertical analysis. (Points: 1) True False 6. Factors that reflect the ability of a business to pay its debts and earn a reasonable amount of income are...
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This note was uploaded on 10/05/2010 for the course ACCOUNTING n/a taught by Professor N/a during the Summer '09 term at Kaplan University.

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Unit 2 - Practice for Review - Unit 2: Financial Statement...

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