Authorized stock is the number of shares that have been sold to investors.

Horizontal analysis analyzes trends in financial statement data for a single company over time.

Consider the following: Amount%Cash$ 300,0006Accounts receivable500,00010Inventory800,00016Long-term assets3,400,00068Total assets$ 5,000,000100 The table provided above is an example of:

Which of the following ratios is most useful in evaluating solvency?

If a company issues 1,000 shares of $1 par value common stock for $20 per share, which of the following accounts would be reported?

The acid-test ratio is always smaller than or equal to the current ratio.

Sitewide Company’s net income was $360,000. Given the account information below, what is the net cash flows from operating activities for Sitewide? Increase in accounts receivable$ 68,000Increase in salaries payable53,500Decrease in inventory33,000Depreciation expense50,000Increase in prepaid insurance3,200

The sale of land is reported in the operating activities section of the statement of cash flows.

Under the indirect method, an increase in accounts payable is added to net income to arrive at net cash flows from operating activities.

Which of the following is a sign that a company cannot quickly turn its receivables into cash?