Acc2052T2

ACC2052t2

Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.

____ 1. The percentage analysis of increases and decreases in individual items in comparative financial statements is called:
|a. |vertical analysis |
|b. |solvency analysis |
|c. |profitability analysis |
|d. |horizontal analysis |

____ 2. The percent of fixed assets to total assets is an example of:
|a. |vertical analysis |
|b. |solvency analysis |
|c. |profitability analysis |
|d. |horizontal analysis |

____ 3. The ability of a business to pay its debts as they come due and to earn a reasonable amount of income is referred to as:
|a. |solvency and leverage |
|b. |solvency and profitability |
|c. |solvency and liquidity |
|d. |solvency and equity