Homework Help is Here – Start Your Trial Now!
Business
Accounting
2. Comparing the amount of a balance sheet item in one year to the amount for the same item in a prior year is called a) common-size analysis. c) horizontal analysis. b) vertical analysis. d) ratio analysis. 000

2. Comparing the amount of a balance sheet item in one year to the amount for the same item in a prior year is called a) common-size analysis. c) horizontal analysis. b) vertical analysis. d) ratio analysis. 000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please answer numbers 2,3,4,5

1. If current assets are P270,000 and total assets are P810,000, what percentage of total assets are current assets? a) 3.5 percent b) 30 percent c) 25 percent d) 33 percent 2. Comparing the amount of a balance sheet item in one year to the amount for the same item in a prior year is called a) common-size analysis. c) horizontal analysis. 3. A firm has liabilities of P30,000 and owner's capital of P90,000. The percentage of total liabilities to total assets is b) vertical analysis. d) ratio analysis. a) 25 percent. b) 20 percent. 4. A firm had owner's capital of P150,000 in 2013 and P187,500 in 2013. The increase in owner's capital from 2013 to 2014 is a) 12.5 percent. 5. If long-term liabilities are P300,000 and total assets are P2,100,000, what percentage of total assets are long-term liabilities? a) 7 percent c) 50 percent. d) 75 percent. b) 20 percent. c) 25 percent. d) 125 percent. b) 16.7 percent c) 12.5 percent d) 14.3 percent
Transcribed Image Text:1. If current assets are P270,000 and total assets are P810,000, what percentage of total assets are current assets? a) 3.5 percent b) 30 percent c) 25 percent d) 33 percent 2. Comparing the amount of a balance sheet item in one year to the amount for the same item in a prior year is called a) common-size analysis. c) horizontal analysis. 3. A firm has liabilities of P30,000 and owner's capital of P90,000. The percentage of total liabilities to total assets is b) vertical analysis. d) ratio analysis. a) 25 percent. b) 20 percent. 4. A firm had owner's capital of P150,000 in 2013 and P187,500 in 2013. The increase in owner's capital from 2013 to 2014 is a) 12.5 percent. 5. If long-term liabilities are P300,000 and total assets are P2,100,000, what percentage of total assets are long-term liabilities? a) 7 percent c) 50 percent. d) 75 percent. b) 20 percent. c) 25 percent. d) 125 percent. b) 16.7 percent c) 12.5 percent d) 14.3 percent
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS