Quiz Ch 12 – Base on Vertical Analysis of Balance Sheet
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
What is the typical base item used when conducting a vertical analysis of a balance sheet?
What is the typical base item used when conducting a vertical analysis of a balance sheet?
When benchmarking Company A against Company B, which item is used as the denominator to express the gross margin of Company A as a percentage?
What conclusions can be drawn about the business strategy of Bryanwood Company based on the percentage changes reported in their financial data for 2018 and 2019?
How is the percentage change in any individual item shown on comparative financial statements calculated?
What is the formula for computing the trend percentage for sales in 2019 if the base year is 2012?
What is the common factor between the price-earnings ratio and dividend yield?
In a common-size balance sheet, which item is used as the denominator to express each line item as a percentage?
In a common-size income statement, which item is used as the denominator to express income tax expense as a percentage?
When benchmarking Company A against the industry leader, Leader Company, which financial ratio should be used to compare the profitability of the two companies?
What is the most useful method for comparing companies of different sizes?