1. A company's net sales assets in year 1 were $300,000 and were $400,000 in year 5. The company's total assets were $350,000 in year 1 and were $370,000 in year 5. What is the percent change in net sales and total assets over this period?

33.33% and 5.71%

2. A tool used to evaluate individual financial statement items or a group of items is called:

Vertical analysis

3. Comparative financial statements show:

changes in relative importance of each financial statement item.

4. Total Assets for a company are $700,000; Accounts Payable is $75,000; Bonds Payable is $225,000; Common Stock is $300,000 and Retained Earnings is $100,000. The common-size percent for Accounts Payable is:

10.7%

5. A pie chart graphic of a common-size income statement will show:

each cost as a component of net sales.

6. All of the following are one of the building blocks of financial statement analysis except:
   
   -solvency
   -profitability
   -marketing prospects
   -liquidity
   -efficiency

marketing prospects

7. Liquidity is the availability of resources to pay ______ - term cash requirements

short

8. A certain company has an acid test ratio of 0.97. This implies which of the following.

Current liabilities are greater than the quick assets of the company.

9. Net sales are $525,000, beginning accounts receivable are $15,000 and ending accounts receivable are $20,000. The accounts receivable turnover is _____ times.

30

10. Which of the following is not a solvency ratio?
    
    -Price earnings ratio
    -Equity ratio
    -Debt ratio
    -Debt-to-equity ratio
    -Times interest earned ratio

Price earnings ratio