Acc2052T2

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  • Topic: Balance sheet, Generally Accepted Accounting Principles, Liability
  • Pages : 48 (7399 words )
  • Download(s) : 71
  • Published : March 4, 2013
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ACC2052t2

Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.

____1.The percentage analysis of increases and decreases in individual items in comparative financial statements is called: |a. |vertical analysis | |b. |solvency analysis | |c. |profitability analysis | |d. |horizontal analysis |

____2.The percent of fixed assets to total assets is an example of: |a. |vertical analysis | |b. |solvency analysis | |c. |profitability analysis | |d. |horizontal analysis |

____3.The ability of a business to pay its debts as they come due and to earn a reasonable amount of income is referred to as: |a. |solvency and leverage | |b. |solvency and profitability | |c. |solvency and liquidity | |d. |solvency and equity |

____4.The ability of a business to earn a reasonable amount of income is referred to as the factor of: |a. |leverage | |b. |profitability | |c. |wealth | |d. |solvency |

____5.Which of the following is not an analysis used in assessing solvency? |a. |inventory analysis | |b. |number of times interest charges are earned | |c. |asset turnover | |d. |accounts receivable analysis |

____6.Which of the following is not an analysis used in assessing solvency? |a. |number of times interest charges are earned | |b. |current position analysis | |c. |ratio of net sales to assets | |d. |inventory analysis |

____7.Which of the following is included in the computation of the acid-test ratio? |a. |prepaid rent...
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