The process of looking at the relationships between different account balances in the financial statements to...

The process of looking at the relationships between different account balances in the financial statements to see if they indicate positive or negative trends developing within a company.

a. activity analysis

b. profitability

c. ratio analysis

d. vertical analysis

Expert Solution

C. Ratio analysis

The process of looking at the relationships between different account balances in the financial statements can be described as ratio analysis. Ratio analysis is used to assess the profitability, performance, liquidity, and solvency of the business. Ratio analysis is used to find out the trends between different time periods (Horizontal analysis), comparisons between businesses or business units, or simply assess the current performance or position.

The word ''Trend'' can be used in a broader sense not only limited to performance or activity but even for indicating the positive or negative trend in the liquidity or solvency positions.

In this context, options (a) activity analysis(asset utilization or operating efficiency), and (b) profitability(It also provides negative or positive trends) are subparts of rato analysis.

(d) Vertical analysis is a common size analysis that compares the relationship of several accounting balances with that of a single accounting balance.

ekkarill92 answered 1 year ago

Ratio analysis expresses relationships between two different items from which of the following financial statements?

Ratio analysis expresses relationships between two different items from which of the following financial statements? Income statement Balance sheet Both income statement and balance sheet None of the above

The following selected account balances appeared on the financial statements of the Washington Company: Accounts...

The following selected account balances appeared on the financial statements of the Washington Company: Accounts Receivable, Jan. 1 $13,000 Accounts Receivable, Dec. 31 9,000 Accounts Payable, Jan 1 4,000 Accounts Payable Dec. 31 7,000 Merchandise Inventory, Jan 1 10,000 Merchandise Inventory, Dec. 31 15,000 Sales 56,000 Cost of Goods Sold 31,000 Question: Cash Collections from customers are? Cash paid to suppliers is?

A researcher is looking at the relationships between age and the number of instances of shoplifting....

A researcher is looking at the relationships between age and the number of instances of shoplifting. Use the data below to establish hypotheses and calculate the correlation for the relationship between age and shoplifting. State and explain your decision with regard to whether the H0 is ultimately rejected or accepted. Age (X) Number of Times Shoplifted (Y) 18 12 20 10 18 10 19 11 40 4 30 3 27 3 21 8 19 7

Trial Balance and Financial Statements The following account balances were prepared (out of order) from the...

Trial Balance and Financial Statements The following account balances were prepared (out of order) from the general ledger of The Cat Whisperer, Inc. of January 31. The company trains cats having behavioral problems. The firm's accounting year began on January 1. All accounts have normal balances. Facilities $32,000 Office Rent Expense $800 Maintenance Expense 460 Supplies Expense 1,760 Supplies 1,640 Utilities Expense 200 Advertising Expense 550 Fees Earned 20,470 Common Stock 37,600 Accounts Receivable 8,200 Cash 7,300 Salaries Expense 4,480...

Capital Financial Corporation will lend 90 percent against account balances that have averaged 30 days or less, 80 percent for account balances between 31 and 40 days, and 70 percent for account balances between 41 and 45 days.

Charming Paper Company sells to the 12 accounts listed here. AccountReceivableBalance OutstandingAverage Age ofthe AccountOver the Last YearA$69,20022B127,00044C70,30017D28,70062E53,80042F306,00038G30,30025H351,00070I40,30031J97,50051K289,00020L67,00032 Capital Financial Corporation will lend 90 percent against account balances that have averaged 30 days or less, 80 percent for account balances between 31 and 40 days, and 70 percent for account balances between 41 and 45 days. Customers that take over 45 days to pay their bills are not considered acceptable accounts for a loan. The current prime rate is 9.50 percent, and Capital...

Preparing Financial Statements and Closing Entries Beneish Company has the following account balances at December 31,...

Preparing Financial Statements and Closing Entries Beneish Company has the following account balances at December 31, the end of its fiscal year. Debit Credit Cash $ 8,000 Accounts receivable 6,500 Equipment 78,000 Accumulated depreciation $14,000 Notes payable 10,000 Common stock 43,000 Retained earnings 20,600 Dividends 8,000 Service fees earned 75,000 Rent expense 18,000 Salaries expense 37,100 Depreciation expense 7,000 Totals $162,600 $162,600 (a) Prepare Beneish Corporation's income statement and statement of stockholders' equity for year-end December 31, and its balance...

U8i4 Construction Company has the following account balances reported on its financial statements on December 31,...

U8i4 Construction Company has the following account balances reported on its financial statements on December 31, 2019. In addition, the company did not issue any common stock during 2019. All accounts on financial statements have been adjusted and reported. Equipment (net) $550 Deferred revenue 145 Salaries expense 60 Depreciation for the year 90 Common stock 60 Supplies 100 Notes payable 180 Service revenue 360 Cash 100 Dividend paid during the year 20 Retained earnings ? Required: Please choose the best...

Question 4 Al-Hijrah Company prepares monthly financial statements. Below are the listed account balances in the...

Question 4 Al-Hijrah Company prepares monthly financial statements. Below are the listed account balances in the Trial Balance at December 31, 2016 before any adjustments have been made for the month of December. SCOTSMAN COMPANY Trial Balance December 31, 2016 Debit Credit Supplies.................................................................................................... $ 3,200 Prepaid Insurance.................................................................................... 4,200 Equipment................................................................................................ 16,200 Accumulated Depreciation—Equipment................................................. $6,000 Unearned Rent Revenue.......................................................................... 1,200 Accounts Payable..................................................................................... 5,000 Owner’s Equity........................................................................................ 11,400 Totals................................................................................................... 23,600 23,600 An analysis of the...

Preparing Financial Statements and Closing Entries Beneish Corporation has the following account balances at December 31,...

Preparing Financial Statements and Closing Entries Beneish Corporation has the following account balances at December 31, the end of its fiscal year. BENEISH CORPORATION Adjusted Trial Balance December 31 Debit Credit Cash $ 8,000 Accounts receivable 13,000 Equipment 156,000 Accumulated depreciation $ 28,000 Notes payable 20,000 Common stock 86,000 Retained earnings 41,200 Dividends 16,000 Service fees earned 142,000 Rent expense 36,000 Salaries expense 74,200 Depreciation expense 14,000 Totals $317,200 $317,200 (a) Prepare Beneish Corporation's income statement and statement of stockholders'...

1.What is the difference between coaching and mentoring relationships? In which situations are the different relationships appropriate?...

1.What is the difference between coaching and mentoring relationships? In which situations are the different relationships appropriate? Why is feedback important in the development process? What is the “glass ceiling” and how is this relevant to employee development? Why is firing a dysfunctional manager often the least attractive option in dealing with these individuals?

Question