ACCT 504 help A Guide to career/uophelp.com ACCT 504 help A Guide to career/uophelp.com | Page 20

8. (TCO C) Accounts receivable arising from sales to customers
amounted to $35,000 and $40,000 at the beginning and end of the year,
respectively. Income reported on the income statement for the year was
$120,000. Exclusive of the effect of other adjustments, the cash flows
from operating activities to be reported on the statement of cash flows is
_____. (Points : 5)
$120,000
$125,000
$155,000
$115,000
9. (TCO F) Which one of the following is not a tool in financial
statement analysis? (Points : 5)
Horizontal analysis
Circular analysis
Vertical analysis
Ratio analysis
10. (TCO F) In vertical analysis, the base amount for studying salary and
wages expense is generally _____. (Points : 5)
net sales
salary and wages expense in a previous year
gross profit
net income
11. (TCO F) Ratios are most useful in identifying _____. (Points : 5)
trends
differences
causes
relationships among different numbers
12. (TCO F) A common measure of liquidity is _____. (Points : 5)
return on assets
current ratio
profit margin
debt to equity
13. (TCO F) Return-on-assets ratio is most closely related to _____.
(Points : 5)