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AC202 Corrected Quiz 3

# AC202 Corrected Quiz 3 - period amount then multiply that...

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Quiz3A Key 1. The ability to meet short-term obligations and to efficiently generate revenues is called: A Liquidity and efficiency. b. Solvency. c. Profitability. d. Market prospects. e. Creditworthiness. Difficulty: Medium Learning Objective: C2 Wild - Chapter 17 #67 1

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2. Three of the most common tools of financial analysis are: a. Financial reporting, ratio analysis, vertical analysis. b. Ratio analysis, horizontal analysis, financial reporting. C Horizontal analysis, vertical analysis, ratio analysis. d. Trend analysis, financial reporting, ratio analysis. e. Vertical analysis, political analysis, horizontal analysis. Difficulty: Easy Learning Objective: C4 Wild - Chapter 17 #75
3. To compute trend percents the analyst should: A Select a base period, assign each item in the base period statement a weight of 100%, and then express financial numbers from other periods as a percent of their base period number. b. Subtract the analysis period number from the base period number. c. Subtract the base period amount from the analysis period amount, divide the result by the analysis

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Unformatted text preview: period amount, then multiply that amount by 100. d. Compare amounts across industries using Dun and Bradstreet. e. All of the above. Difficulty: Hard Learning Objective: P1 Wild - Chapter 17 #91 3 4. The common-size percent is computed by: a. Dividing the analysis amount by the base amount. b. Dividing the base amount by the analysis amount. C Dividing the analysis amount by the base amount and multiplying the result by 100. d. Dividing the base amount by the analysis amount and multiplying the result by 1,000. e. Subtracting the base amount from the analysis amount and multiplying the result by 100. Difficulty: Hard Learning Objective: P2 Wild - Chapter 17 #95 5. Use the balance sheets of Sando shown below to calculate the following ratios for 2008 (round to the hundredths): (a) Current ratio. (b) Acid-test ratio. (c) Debt ratio. (d) Equity ratio. 5...
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