Reference no: EM132913940

Problem 1. If you are trying to forecast your company's growth for the next year, what should be your primary consideration?

Select an answer:

Option 1: the company's recent performance
Option 2: the company's owner equity
Option 3: the company's leverage
Option 4: the company's historic performance

Problem 2. Why are common size financial statements used?

Select an answer:

Option 1: to compare companies of similar sizes
Option 2: to compare companies of different sizes
Option 3: to describe the health of a single company
Option 4: to analyze large multinational corporations

Problem 3. When determining the average collection period, how is accounts receivable turnover calculated?

Select an answer:

Option 1: Average Accounts Receivable * Inventory Turnover
Option 2: Average Accounts Receivable/Net Sales
Option 3: Net Sales * Average Accounts Receivable
Option 4: Net Sales/Average Accounts Receivable