1.Assume the following sales data for a company:
2010 $700000
2011 $600000
What is the percentage increase in sales from 2009 to 2010? (To the nearest percent.)
a. 117%
b. 17%
c. 14%
d. 114%
2. In a common size financial statement, which of the following is given a percentage of 100 percent?
a. Total liabilities
b. Net income
c. Net sales
d. Property, Plant and Equipment
3. In horizontal analysis each item is expressed as a percentage of the
a. base year figure.
b. latest year.
c. total assets.
d. net income figure
4. The independent auditors do which of the following?
a. describe which financial statements are covered by the audit.
b. examine and verify management's conclusions regarding the adequacy of its internal control.
c. summarize what the auditor did.
d. state that the financial statements are truthful.
5. An annual report includes all of the following except:
a. notes to the financial statements.
b. management discussion and analysis section.
c. salary information for the key executives.
d. an auditor's report.
6. In the annual report, where would a financial statement reader find out if the company's financial statements give a fair depiction of its financial position and operating results?
a. in the notes to the financial statements
b. in the management discussion and analysis section
c. in the balance sheet
d. in the auditor's report on the fairness of the financial statements