Homework Help is Here – Start Your Trial Now!
Business
Accounting
2. Comparing the amount of a balance sheet item in one year to the amount for the same item in a prior year is called a) common-size analysis. c) horizontal analysis. b) vertical analysis. d) ratio analysis. 000

2. Comparing the amount of a balance sheet item in one year to the amount for the same item in a prior year is called a) common-size analysis. c) horizontal analysis. b) vertical analysis. d) ratio analysis. 000

Financial Accounting
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter17: Financial Statement Analysis
Section: Chapter Questions
Problem 20E: Five measures of solvency or profitability The balance sheet for Garcon Inc. at the end of the...
See similar textbooks
icon
Related questions
Question

Please answer numbers 2,3,4,5

1. If current assets are P270,000 and total assets are P810,000, what percentage of total assets are current assets? a) 3.5 percent b) 30 percent c) 25 percent d) 33 percent 2. Comparing the amount of a balance sheet item in one year to the amount for the same item in a prior year is called a) common-size analysis. c) horizontal analysis. 3. A firm has liabilities of P30,000 and owner's capital of P90,000. The percentage of total liabilities to total assets is b) vertical analysis. d) ratio analysis. a) 25 percent. b) 20 percent. 4. A firm had owner's capital of P150,000 in 2013 and P187,500 in 2013. The increase in owner's capital from 2013 to 2014 is a) 12.5 percent. 5. If long-term liabilities are P300,000 and total assets are P2,100,000, what percentage of total assets are long-term liabilities? a) 7 percent c) 50 percent. d) 75 percent. b) 20 percent. c) 25 percent. d) 125 percent. b) 16.7 percent c) 12.5 percent d) 14.3 percent
Transcribed Image Text:1. If current assets are P270,000 and total assets are P810,000, what percentage of total assets are current assets? a) 3.5 percent b) 30 percent c) 25 percent d) 33 percent 2. Comparing the amount of a balance sheet item in one year to the amount for the same item in a prior year is called a) common-size analysis. c) horizontal analysis. 3. A firm has liabilities of P30,000 and owner's capital of P90,000. The percentage of total liabilities to total assets is b) vertical analysis. d) ratio analysis. a) 25 percent. b) 20 percent. 4. A firm had owner's capital of P150,000 in 2013 and P187,500 in 2013. The increase in owner's capital from 2013 to 2014 is a) 12.5 percent. 5. If long-term liabilities are P300,000 and total assets are P2,100,000, what percentage of total assets are long-term liabilities? a) 7 percent c) 50 percent. d) 75 percent. b) 20 percent. c) 25 percent. d) 125 percent. b) 16.7 percent c) 12.5 percent d) 14.3 percent
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
EBK CFIN
EBK CFIN
Finance
ISBN:
9781337671743
Author:
BESLEY
Publisher:
CENGAGE LEARNING - CONSIGNMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS