Test Bank For Managerial Accounting The Cornerstone of Business Decision Making 9th Edition By Maryanne Mowen, Don Hansen, Dan Heitger

Test Bank For
Managerial Accounting The
Cornerstone of Business
Decision Making 9th Edition By
Maryanne Mowen, Don
Hansen, Dan Heitger
(All Chapters 1-15, 100%
Original Verified, A+ Grade)
All Chapters Arranged
Reverse: 15-1
This is The Original Test Bank
For 9th Edition, All other Files
in The Market are
Fake/Old/Wrong Edition.

,Name: Class: Date:

Ch15 - Financial Statement Analysis

True / False
1. In the horizontal analysis of financial statements, the base year can be the immediately preceding period, or it
can be a period further in the past.
a. True
b. False

ANSWER: True
RATIONALE: In the horizontal analysis of financial statements, line items of the financial
statements are expressed as a percentage of a base period amount. The base
period can be the immediately preceding period, or it can be a period further in the
past.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.15-01 - Analyze financial statements using two forms of
common-size analysis: horizontal analysis and vertical analysis.
NATIONAL STANDARDS: BUSPROG: Analytic
STATE STANDARDS: ACBSP: APC-23 - Financial Statement Analysis
AICPA: FN-Measurement
IMA: FSA
KEYWORDS: Bloom's: Understand

2. A primary purpose of the vertical analysis of financial statements is to observe and assess trends over a three-
year period.
a. True
b. False

ANSWER: False
RATIONALE: The vertical analysis of financial statements is concerned primarily with
relationships among items within a particular time period. Horizontal analysis of
financial statements allows trends over time to be assessed.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.15-01 - Analyze financial statements using two forms of
common-size analysis: horizontal analysis and vertical analysis.
NATIONAL STANDARDS: BUSPROG: Analytic
STATE STANDARDS: ACBSP: APC-23 - Financial Statement Analysis
AICPA: FN-Measurement
IMA: FSA
KEYWORDS: Bloom's: Understand



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,Name: Class: Date:

Ch15 - Financial Statement Analysis

3. Common-size analysis expresses each item in a financial statement as a percent of a base amount.
a. True
b. False

ANSWER: True
RATIONALE: Common-size analysis expresses each item in a financial statement as a percent
of a base amount.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.15-01 - Analyze financial statements using two forms of
common-size analysis: horizontal analysis and vertical analysis.
NATIONAL STANDARDS: BUSPROG: Analytic
STATE STANDARDS: ACBSP: APC-23 - Financial Statement Analysis
AICPA: FN-Measurement
IMA: FSA
KEYWORDS: Bloom's: Remember

4. In the vertical analysis of an income statement, cost of goods sold is represented by 100%.
a. True
b. False

ANSWER: False
In the vertical analysis of an income statement, net sales are represented by
RATIONALE: 100%.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES:MANG.MOWE.9e.26.15-01 - Analyze financial statements using two forms of
common-size analysis: horizontal analysis and vertical analysis.
NATIONAL STANDARDS: BUSPROG: Analytic
STATE STANDARDS: ACBSP: APC-23 - Financial Statement Analysis
AICPA: FN-Measurement
IMA: FSA
KEYWORDS: Bloom's: Remember




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, Name: Class: Date:

Ch15 - Financial Statement Analysis

5. In the vertical analysis of a balance sheet, total liabilities are represented by 100%.
a. True
b. False

ANSWER: False
RATIONALE: In the vertical analysis of a balance sheet, total assets are represented by 100%.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES:MANG.MOWE.9e.26.15-01 - Analyze financial statements using two forms of
common-size analysis: horizontal analysis and vertical analysis.
NATIONAL STANDARDS: BUSPROG: Analytic
STATE STANDARDS: ACBSP: APC-23 - Financial Statement Analysis
AICPA: FN-Measurement
IMA: FSA
KEYWORDS: Bloom's: Remember

6. In the vertical analysis of a balance sheet, the base for current liabilities is total liabilities.
a. True
b. False

ANSWER: False
RATIONALE: In the vertical analysis of a balance sheet, the base for all items on the balance
sheet is total assets.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.15-01 - Analyze financial statements using two forms of
common-size analysis: horizontal analysis and vertical analysis.
NATIONAL STANDARDS: BUSPROG: Analytic
STATE STANDARDS: ACBSP: APC-23 - Financial Statement Analysis
AICPA: FN-Measurement
IMA: FSA
KEYWORDS: Bloom's: Remember




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