Quiz Ch 12 – T/F Understanding Vertical Analysis in Balance Sheets
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
The vertical analysis compares balance sheet line items between current and prior periods.
The vertical analysis compares balance sheet line items between current and prior periods.
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.
Usually, a larger working capital implies a higher capability to settle debts.
What is the term for the amount of a company’s net income earned for each share of its outstanding common stock?
What are the consequences of buying or selling shares of a company based on non-public information?
What is the source of operating earnings and what do they represent?
What does the acronym MD&A stand for?
What is the main focus of horizontal analysis?
What is the relationship between the current year and the base year when computing trend percentages in financial analysis?
What is the term for comparing Walton Company’s return on sales to the industry leader’s return on sales?