Horizontal analysis of 2014 ABM’s balance sheet would report a. Cash as 9.50% of total assets. b. 17% increase in Prepaid Expenses. c. 19% increase in Cash. d. All of the above 2. Vertical analysis of 2014 ABM’s balance sheet would report a. Cash as 9.50% of total assets. b. 17% increase in Prepaid Expenses. c. 19% increase in Cash. d. All of the above 3. A common-size income statement for ABM would report (amounts rounded) a. Net income of 19%. b. Sales of 100%. c. Cost of sales at 34%. d. All of the above
1. Horizontal analysis of 2014 ABM’s
sheet
a. Cash as 9.50% of total assets.
b. 17% increase in Prepaid Expenses.
c. 19% increase in Cash.
d. All of the above
2. Vertical analysis of 2014 ABM’s balance sheet
would report
a. Cash as 9.50% of total assets.
b. 17% increase in Prepaid Expenses.
c. 19% increase in Cash.
d. All of the above
3. A common-size income
statement for ABM would
report (amounts rounded)
a. Net income of 19%.
b. Sales of 100%.
c. Cost of sales at 34%.
d. All of the above
4. A common-size balance sheet for ABM would
report (amounts rounded)
a. Current liabilities as 28% of total assets.
b. Owner’s capital is 53% of total liabilities and
equity
c. Receivables is 7% of total liabilities and equity
d. All of the above
5. Trend analysis will show which of the
following?
a. 15% increase in Current Liabilities.
b. 33% increase in Owner’s Capital.
c. 19% increase in Long Term Liabilities
d. All of the above
6. If current assets are ₱270,000 and total
assets are ₱810,000, what percentage of total
assets are current assets? a. 3.5 percent
b. 30 percent
c. 25 percent
d. 33 percent
7. 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.
b. vertical analysis.
c. horizontal analysis.
d. ratio analysis.
8. A firm has liabilities of ₱30,000 and owner’s
capital of ₱90,000. The percentage of total
liabilities to total assets is
a. 25 percent.
b. 20 percent.
c. 50 percent.
d. 75 percent.
9. A firm had owner’s capital of
₱150,000 in 2013 and ₱187,500 in
2013. The increase in owner’s capital
from 2013 to 2014 is a. 12.5 percent.
b. 20 percent.
c. 25 percent.
d. 125 percent.
10. If long-term liabilities are ₱300,000
and total assets are ₱2,100,000, what
percentage of total assets are long-term
liabilities? a. 7 percent
b. 16.7 percent
c. 12.5 percent
d. 14.3 percent
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