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1) How is working capital calculated?
| | a. | current assets * current liabilities |
| | b. | current assets minus current liabilities |
| | c. | current assets plus current liabilities |
| | d. | current assets / current liabilities |
2) Which of the following evaluates data over a period of time?
| | a. | ratio analysis |
| | b. | financial analysis |
| | c. | vertical analysis |
| | d. | horizontal analysis |
3) Which of the following applies to ratio analysis?
| | a. | it uses financial statement data from the same accounts and compares it to different years |
| | b. | it eliminates the size difference |
| | c. | it uses financial statement data from the same year but compares it to different accounts |
| | d. | it is used to evaluate profitability, liquidity, and solvency |
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