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6.Comparisons with a competitor company to provide insight into a company's competitive position is an a. intracompany basis comparison.
b. intercompany basis comparison.
c. industry comparison.
d. both a and c
e. none of the above
7.A technique for evaluating a series of financial statement data over a period of time is called
a. horizontal analysis.
b. vertical analysis.
c. ratio analysis.
d. none of the above
e. both a and b
8.A technique for evaluating financial statement data that expresses each item within a financial statement as a percentage of a base amount is called
a. horizontal analysis.
b. vertical analysis.
c. ratio analysis.
d. none of the above
e. both a and b
9.Vertical analysis of comparative income statements would show cost of goods sold as a percentage of
a. total assets.
b. inventory.
c. net sales.
d. net income
e. total liabilities.
10.A measure of the ability of a company to pay total liabilities is a
a. liquidity ratio.
b. solvency ratio.
c. current ratio.
d. profitability ratio.
e. working capital ratio.
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