Week 7

Horizontal analysis is also called comparative analysis

• True

• False

If Sales in 2023 are $200,000 and Sales in 2022 are $175,000, what is the percentage change from 2023 to 2022?

• 38%

• 62%

• 33%

• 13%

The equation for the current ratio is current assets divided by current liabilities

• True

• False

The quick ratio is a better ratio to determine an event business' ability to pay off immediate debt

• True

• False

A current ratio of 1:4 is positive

• True

• False

When performing a vertical analysis on an income statement, what is set to 100%

• Operating Expenses

• Net Income

• Salaries Expense

• Sales Revenue

When performing a horizontal analysis, you only need 1 period of data

• True

• False

If food sales are $500,000 for the year and food costs are $200,000, the food cost percentage is

• 60%

• 40%

• 50%

• 60%

Gross Profit Margin is Sales - Cost of Sales

• True

• False