21. Land improvements would be found on which of the following documents?

  • Income Statement
  • Balance Sheet
  • Shareholder’s Equity
  • Statement of Cash Flows

22. True or False: In vertical analysis, you compare each line item in the financial statement to a base amount.

  • False
  • True

23. The Principal Balance of any long-term debt due within a year would go under which account on the Balance Sheet?

  • Short Term Loans Payable
  • Accounts Receivable
  • Current portion of Long-Term Debt
  • Other receivables

24. True or False: Vertical analysis is the proportional analysis of a financial statement.

  • True
  • False

25. Where would you locate Deferred Revenues on the Balance Sheet?

  • Noncurrent Liabilities
  • Current Assets
  • Current Liabilities
  • Noncurrent Assets

26. True or False: In vertical analysis, the Gross Sales or Revenue is the base amount on a P&L statement.

  • False
  • True

27. Sales Tax and Payroll Tax are both considered _______________ and found on the ______________.

  • Liabilities, Balance Sheet
  • Deferred Revenue, Statement of Cash flows
  • Investments, Balance Sheet
  • Assets, Income Statement

28. True or False: Deferred Revenue is considered a Cash Inflow.

  • True
  • False

Shuffle Q/A 3

29. True or False: On the Statement of Cash Flows, the cash at the end of the period is calculated by adding the net cash increase for that period to the cash at the beginning of the period.

  • True
  • False

30. Which of the following is the bottom line on the P&L statement?

  • Net Revenue
  • Gross Profit
  • Gross Revenue
  • Net Profit

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