Questions from College Accounting

Q: Horizontal analysis cannot be presented on comparative financial statements. Agree or

Horizontal analysis cannot be presented on comparative financial statements. Agree or disagree? Please explain.

Q: What is meant by vertical analysis?

What is meant by vertical analysis?

Q: During the month of November, the following transactions occurred.

During the month of November, the following transactions occurred. Assignment 1. Record the following transactions in the general journal and post them to the general ledger. 2. Prepare a trial balanc...

Q: Common-size statements use horizontal analysis. Agree or disagree?

Common-size statements use horizontal analysis. Agree or disagree? Please explain.

Q: Why is a base year chosen in trend analysis?

Why is a base year chosen in trend analysis?

Q: How can ratios be expressed?

How can ratios be expressed?

Q: Explain the following types of ratios: a. Liquidity

Explain the following types of ratios: a. Liquidity b. Asset management c. Debt management d. Profitability

Q: What current asset accounts are deleted in the calculation of the acid

What current asset accounts are deleted in the calculation of the acid test ratio? Why?

Q: What could a low accounts receivable turnover rate indicate?

What could a low accounts receivable turnover rate indicate?

Q: Which columns of the worksheet aid in the preparation of the income

Which columns of the worksheet aid in the preparation of the income statement?