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(5) notes to these statements 21 22. If a company is comparing this year's financial performance to last yearis financial performance, it is using horizontal analysis. 22. 23. Three of the most common tools of financial analysis include borizontal analysis, verticel annlysis, and retio annlysis. 23. 24. The buse amount for a common-sive balance sheet is usually total assets. 24. 25. Working capinl is computed as current liabilities minus curreat essets. 25. 26. Long term investments: A) Are current assets. B) Can include funds designated for a specinl purpose, or investments in land not used in the company's operations. C) Must be readily convertible to cash. D) Are expected to be converted into cash within one year. E) Include only equity securities 26. 27. Short-term investments include: A) Securities that manegement intends to coavent to cach within the longer of one year or the current operating cyele, and are readily convertible to eash. B) Funds carmarked for a epecial purpose such es bond sinking fundh. C) Stocks not intended to be converted into cash. D) Bonds not intended to be converted into cash. B) Sinking finds not inteaded to be converted into cash. 27. 28. Long-term investments include: A) Investments that are not readily convertiblo to cach or not intended to be converted to cach in the chort term. C) Investments in maketable bonds that are intended to be converted into cash in the short-term. D) Only inyestments readily convertible to canh. B) Investments intended to be converted to each within one yeer. 28. 29. Strickand Corporation hes lavested in debt socuritien, Surickland tatenda to ectively buy and sell this investment for profit. This investment is classified as: A) ex exuilablo-for-sale security. B) s beld - to-maturity security. C) e treding eocurity. D) 8 significant influence recurity

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