Financial ratio analysis is a form of horizontal analysis in that comparisons are made between different accounts in the same set of financial statements.
Answer the following statement true (T) or false (F)
False
Ratio analysis involves studying various relationships between different items reported in a set of financial statements.
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Exhibit 21-2 In preparation for completing the statement of cash flows using the spreadsheet method, Williams Company provided the following information relating to patents for 2016: Balance, 1/1/2016 $4,800 Purchase of 10-year life patent for cash 2,000 Sale of patent at book value (1,400) Amortization of patents (290) Balance, 12/31/2016 $5,110 ? Refer to Exhibit 21-2. The Cash Flows from
Operating Activities section prepared using the indirect method would include which of the following deductions or add-back amounts related to patents? A) $(310) B) $(290) C) $ 290 D) $ 600
The Allowance for Bad Debts has a credit balance of $8000 before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable subsidiary ledger using the aging-of- receivables method, the company's management estimates that uncollectible accounts will be $15,000. What will be the amount of Bad Debts Expense reported on the income statement?
A) $23,000 B) $7000 C) $15,000 D) $8000
Which of the following best represents the relationship between the media and sustainable companies?
a. Magazines often report on environmental programs, but television and radio typically ignore them. b. Media typically reports only on profitability and novelty of product. c. Companies can get a lot of free advertising from media if committed to sustainability. d. The media will typically not punish unsustainable companies if they are very profitable.
In bringing a warranty action, the buyer must prove that:
a. a warranty existed. b. the warranty has been breached. c. the breach of the warranty proximately caused the loss suffered. d. All of these. e. None of these.