Match Each Item with Its Definition

question 56

Multiple Choice

Match each item with its definition.
-Vertical analysis

• A)Useful for comparing one company to another or a company with industry averages
• B)Focuses on a company’s ability to generate net income
• C)The percentage analysis of the relationship of each component in a financial statement to a total within the statement.
• D)An analysis of a company’s ability to pay its current liabilities.
• E)Occurs when a company abandons a segment.
• F)A percentage analysis of increases and decreases in related items in comparative financial statements.
• G)Something that is both unusual and infrequent.
• H)This requires a restatement of prior period financial statements.

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Definitions:

Sucrose

Disaccharide composed of glucose and fructose; table sugar.

Salt

A mineral compound that is composed mainly of sodium chloride, which is essential for life in general.

Water

A tasteless, odorless, and colorless chemical substance composed of hydrogen and oxygen, essential for most forms of life on Earth.

Chemical Energy

The potential of a chemical substance to undergo a transformation through a chemical reaction to transform other chemical substances.