Quiz Ch 12 – T/F The Usefulness of Vertical Analysis in Comparing Companies of Different Sizes
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
Vertical analysis is a useful tool for comparing companies of different sizes.
Vertical analysis is a useful tool for comparing companies of different sizes.
Consistent growth in income from operations signifies revenue expansion, but potentially uncontrolled expenses, indicating future growth and increased company value.
The Management’s Discussion and Analysis section of the annual report contains the management’s rationale for fluctuations in sales.
If a company’s net income is 15% of sales, then according to vertical analysis, the cost of goods sold must be 85% of sales.
Among the options, which one will result in an increase in net working capital, assuming all other factors remain unchanged?
Given the bank reconciliation, identify and explain whether the employee stole from the company or not and point out which shows the company’s true cash balance.
Fill in the blanks to explain when a person has custody of an asset and the accounts for the asset.