1) A common-size financial statement is one in which each number is expressed
A) As a percentage of some base number for the firm(such as total assets or revenues)
B)as a % of an industry average (such as rate of return)
C) as a % of a stock market average (such as market capitalization)
D) as a % of a national average(such as per capita GDP
2) which of the following ratios is incorrect?
A) Current ratio=Current assets/Current Liabilities
B) Quick ratio=(current assets-Inventory)/Current liabilities
C) Inventory turnover=(cost of goods sold)/Inventory
D) Days Sales outstanding =365/Accounts payable turnover