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