Question 1 (1 point) The current ratio would be of most interest to short-term creditors. long-term creditors. stockholders. customers. Question 2 (1 point) A balance sheet that displays only component percentages is called a balance sheet. condensed common size comparative trendy O Question 3 (1 point) Vertical analysis is a technique that expresses each item in a financial statement O in dollars and cents. as a percent of the item in the previous year. as a percent of a base amount. starting with the highest value down to the lowest value. Question 4 (1 point) Vertical analysis is also known as perpendicular analysis. common size analysis. trend analysis. straight-line analysis. Question 5 (1 point) Short-term creditors are usually most interested in assessing solvency. liquidity. O marketability. O profitability. Question 6 (1 point) Solvency is of most interest to short-term creditors. stockholders. competitors. long-term creditors. Question 7 (1 point) Crestwood Department Store had net credit sales of $13,000,000 and cost of goods sold of $9,000,000 for the year. The average inventory for the year amounted to $2,500,000. The average days in inventory during the year was approximately 261 days. 122 days. 101 days. 70 days. Question 8 (1 point) Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time Othat has been arranged from the highest number to the lowest number. that has been arranged from the lowest number to the highest number. to determine which items are in error. to determine the amount and/or percentage increase or decrease that has taken place. Question 9 (1 point) Rice Company reported the following on its income statement: Income before income taxes $500,000 Income tax expense 150.000 Net income $350,000 An analysis of the income statement revealed that interest expense was $80,000. Rice Company's times interest earned was 8 times. 7.25 times. O 6.25 times. 4.4 times Question 10 (1 point) The current ratio is a liquidity ratio. O profitability ratio. O long-term solvency ratio. O cash flow ratio
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