ACCT 212 - EXAM 1 - PROF. KOSS questions with answers

ACCT 212 - EXAM 1 - PROF. KOSS |\ |\ |\ |\ |\ |\ |\ |\




questions with answers |\ |\




what are solvency ratios used for? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\


✔✔refers to a company's long-run financial viability and its ability
|\ |\ |\ |\ |\ |\ |\ |\ |\


to cover long-term obligations
|\ |\ |\ |\




what are liquidity ratios used for? - CORRECT ANSWERS ✔✔refers
|\ |\ |\ |\ |\ |\ |\ |\ |\


to the availability of resources to meet short-term cash
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\


requirements


what are efficiency ratios used for? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\


✔✔Efficiency is usually measured relative to how much revenue
|\ |\ |\ |\ |\ |\ |\ |\ |\


is generated from a certain assets.
|\ |\ |\ |\ |\




profitability ratios - CORRECT ANSWERS ✔✔refers to a company's
|\ |\ |\ |\ |\ |\ |\ |\


ability to generate an adequate return on invested capital.
|\ |\ |\ |\ |\ |\ |\ |\ |\




horizontal analysis - CORRECT ANSWERS ✔✔Comparing a
|\ |\ |\ |\ |\ |\ |\


company's financial condition and performance across time.
|\ |\ |\ |\ |\ |\




vertical analysis - CORRECT ANSWERS ✔✔Comparing a
|\ |\ |\ |\ |\ |\ |\


company's financial condition and performance to a base
|\ |\ |\ |\ |\ |\ |\ |\


amount.


ratio analysis - CORRECT ANSWERS ✔✔Measurement of key
|\ |\ |\ |\ |\ |\ |\ |\


relations between financial statement items.
|\ |\ |\ |\

, dollar change - CORRECT ANSWERS ✔✔analysis period amount -
|\ |\ |\ |\ |\ |\ |\ |\ |\


base period amount
|\ |\




percent change for horizontal analysis - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\


✔✔(dollar change/base period amount) x 100
|\ |\ |\ |\ |\




common size percent for vertical analysis - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\


✔✔(analysis amount/base amount) x 100 |\ |\ |\ |\




working capital - CORRECT ANSWERS ✔✔current assets - current
|\ |\ |\ |\ |\ |\ |\ |\ |\


liabilities = working capital
|\ |\ |\




analysis reporting - CORRECT ANSWERS ✔✔reduces uncertainty
|\ |\ |\ |\ |\ |\ |\


in business decisions through a rigorous and sound elevation
|\ |\ |\ |\ |\ |\ |\ |\




for vertical analysis if given a balance sheet what is our base
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


amount - CORRECT ANSWERS ✔✔total assets - 100%
|\ |\ |\ |\ |\ |\ |\




for vertical analysis if given an income statement what is our
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


base amount - CORRECT ANSWERS ✔✔total net sales - 100%
|\ |\ |\ |\ |\ |\ |\ |\ |\




another name for horizontal analysis - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\


✔✔comparative


another name for vertical analysis - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\


✔✔common size |\