Analyzing companies of different sizes


1. Gains vary from revenues because gains

a. Are not result of entity's ongoing, central operations

b. Do not have to be realized

c. Are reported as income from operating activities

d. Don't involve any offsetting costs or expenses

2. Which of the given accounts are not included in computations for Gross Profit?

a. Revenue

b. Cost of goods sold

c. Net sales

d. General and selling expenses  

3. Which of the given below generally is most useful in analyzing companies of different sizes.

a. Comparative statements

b. Common-sized financial statements

c. Price-level accounting

d. Audit report

4. Corporate governance comprise concerns about business ethics and social responsibility

a. True

b. False

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Accounting Basics: Analyzing companies of different sizes
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