ratio statement

The ____________________ is a type of financial statement that indicates the worth or financial condition of a business as of a certain date.

income statement

ratio statement

balance sheet

vertical analysis

Question 2

_________ assets are assets that are normally turned into cash within a year.

Liquid

Nonliquid

Current

Historical

Question 3

_______ and _________ are assets that are used in transacting business and are more long term in nature.

Plant and equipment

Accounts and receivables

Notes and cash

Merchandise and inventory

Question 4

___________ are amounts that the business owes.

Assets

Liabilities

Receivables

Inventories

Question 5

Capital, proprietorship, and net worth are all terms that refer to owner’s _______.

liabilities

debts

equity

cash

Question 6

A __________ analysis of a balance sheet shows the ratio of each item on the balance sheet to the total assets.

horizontal

current

wage

vertical

Question 7

A(n) ___________ analysis compares the same item for two different years.

vertical

current

horizontal

inventory

Question 8

The ___________ statement shows the net income of a business over a period of years.

income

expenditure

liability

loss

Question 9

______ sales is the difference between the total sales and sales returns or allowances.

Gross

Surplus

Discounted

Net

Question 10

________ profit is the difference between the net sales and the cost of goods sold.

Net

Surplus

Gross

Incidental