Reference no: EM13945197

1. Which inventory accounting system does not require a physical count of the inventory at the year end? 

v  Periodic inventory system

v  Perpetual inventory system

v  Specific Identification

v  None of the above

2. Which of the following tools should you use to perform a trend analysis of operating expenses?

v  Ratio analysis

v  Common-size analysis

v  Vertical analyst

v  Horizontal analysis

3.  When performing a common-size income statement, the 100% figure is _____.

v  net sales

v  Total liabilities plus stockholders' equity

v   Net income

v   Total assets

3.  In the vertical analysis, the base amount for the cost of goods sold expense is general _____.

v  net income

v  operating profit

v  gross profit

v   net sales

4. A common ratio to measure profitability is the _____

v  quick ratio

v   inventory turnover

v   days' sales in receivables

v   asset turnover

5.  DuPont analysis measures which of the following?

v  Liquidity

v  Leverage

v  Turnover

v  Profitability

6. To calculate the market value of a bond, we need to use the time-value-of-money concept called ____

v  Interpolation

v  future value

v  compounding

v  discounting