A Firm Uses 2011 as the Base Year for Its

question 44

Multiple Choice

A firm uses 2011 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 2012 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

---

Definitions:

Statistical Records

Quantitative data collected and recorded for analysis and reference.

Written Records

Documentation captured in written form, archiving events, transactions, observations, or decisions.

Archival Data

Information that is obtained from stored records including written, video, audio, and digital sources.

Traditional Data

Information that has been collected in long-established or conventional ways, often not involving modern technology.