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1) Gross profit will be a prominent figure on a single-step income statement.
2) If the company closes the year when the activities are at a peak, the number of days'
sales in inventory would tend to be overstated and the liquidity would be overstated.
3) There is a standard list of ratios.
4) If dividends are not declared by the board of directors in a particular year, a holder of
cumulative preferred stock will never be paid that dividend.
5) Accounting for a business combination must be accounted for using the purchase
method.
6) Banks are always restricted from operating interstate.
7) The deferred compensation element of an equity-based deferred compensation
arrangement is the amount of compensation cost deferred and amortized (expensed) to
future periods as the services are provided.
8) The loan loss coverage ratio is computed by dividing the provision for loans by net
loans.
9) A good statistic for analysis of asset utilization for a bus line is the passenger load
factor.
10) Return on investment measures the return on long-term suppliers of funds.
11) For NAICS, each country can add additional detailed industries, provided the
additional detail aggregates to the NAICS level.
