Business Finance Week 4

If how you value inventory at a catering company was changed from one period to the next, you should disclose it.

• Objectivity Principle

• Distinct Entity Principle

• Full Disclosure Principle

• Consistency Principle

All business transactions need to have evidence or documentation

• Full Disclosure Principle

• Objectivity Principle

• Distinct Entity Principle

• Going Concern Principle

Horizontal analysis is also known as comparative analysis

• True

• False

Current Assets / Current Liabilities

• Quick Ratio

• Working Capital

• Current Ratio

• Profit Margin

Accounts Payable, Notes Payable

• Long-term Liabilities

• Current Assets

• Current Liabilities

• Fixed Assets

Revenue - Cost of Goods Sold

• Net Income

• Net Sales

• Gross Profit

• Net Expenses

Vertical analysis is also known as common size analysis

• True

• False