A Firm Uses 2012 as the Base Year for Its

question 88

Multiple Choice

A firm uses 2012 as the base year for its financial statements. The common-size, base-year statement for 2012 has an inventory value of 1.08. This is interpreted to mean that the 2009 inventory is equal to 108 percent of which one of the following?

• A)2011 inventory
• B)2011 total assets
• C)2012 total assets
• D)2011 inventory expressed as a percent of 2011 total assets
• E)2012 inventory expressed as a percent of 2012 total assets

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Definitions:

Angiography

Medical imaging technique used to visualize the inside, or lumen, of blood vessels and organs of the body, with particular interest in the arteries, veins, and heart chambers.

Computed Tomography

A specialized imaging technique that uses computer-processed combinations of many X-ray measurements taken from different angles to produce cross-sectional images of specific areas of a scanned object.

Abbreviation

A compact version of a word or phrase utilized for the purpose of saving space or dodging repeated language.

Radium

Radium is a naturally occurring radioactive metallic element, used in cancer treatment and previously in luminescent paint for watches and instruments.