ACCT 212 Final Exam-Liberty University (VERIFIED
ANSWERS) ALREADY GRADED A+ 2025-2026
update
Horizontal Analysis (side-by-side) -✔✔ANS compare year to year analysis of each
account's dollar amount changes and percentage changes; dollar change=current yea
minus previous year; %change= dollar change/previous year
Vertical Analysis of Balance Sheet -✔✔ANS each item is stated as a percent of total assets
Vertical Analysis of Income Statement -✔✔ANS account balance/net sales
ratio analysis -✔✔ANS the assessment of a firm's financial condition using calculation
and interpretations of financial ratios developed from the firm's financial statements
current ratio -✔✔ANS current assets/current liabilities
acid-test ratio -✔✔ANS (Current Assets - Inventory) / Current Liabilities
total asset turnover -✔✔ANS net sales/average total assets
A/R turnover -✔✔ANS Sales/Average A/R, net
Days' sales uncollected -✔✔ANS 365 / A/R Turnover
, inventory turnover -✔✔ANS COGS/Average Inventory
debt-to-equity ratio -✔✔ANS total liabilities/total equity
times interest earned -✔✔ANS EBIT/ interest expense
profit margin -✔✔ANS net income/net sales
return on assets -✔✔ANS net income/average total assets
working capital -✔✔ANS current assets-current liabilities
fixed costs -✔✔ANS costs that remain constant as output changes
variable costs -✔✔ANS costs that vary directly with the level of production
direct costs -✔✔ANS Costs that can be specifically identified with a particular project o
activity.
indirect costs -✔✔ANS Costs that cannot be easily and accurately traced to a cost object
schedule of cost of goods manufactured -✔✔ANS Direct Materials used
+Direct Labor
+Factory Overhead
=total manufacturing cost
+beginning WIP
-ending WIP
=COGM
direct labor -✔✔ANS the work of factory employees that can be physically and directl
associated with converting raw materials into finished goods
ANSWERS) ALREADY GRADED A+ 2025-2026
update
Horizontal Analysis (side-by-side) -✔✔ANS compare year to year analysis of each
account's dollar amount changes and percentage changes; dollar change=current yea
minus previous year; %change= dollar change/previous year
Vertical Analysis of Balance Sheet -✔✔ANS each item is stated as a percent of total assets
Vertical Analysis of Income Statement -✔✔ANS account balance/net sales
ratio analysis -✔✔ANS the assessment of a firm's financial condition using calculation
and interpretations of financial ratios developed from the firm's financial statements
current ratio -✔✔ANS current assets/current liabilities
acid-test ratio -✔✔ANS (Current Assets - Inventory) / Current Liabilities
total asset turnover -✔✔ANS net sales/average total assets
A/R turnover -✔✔ANS Sales/Average A/R, net
Days' sales uncollected -✔✔ANS 365 / A/R Turnover
, inventory turnover -✔✔ANS COGS/Average Inventory
debt-to-equity ratio -✔✔ANS total liabilities/total equity
times interest earned -✔✔ANS EBIT/ interest expense
profit margin -✔✔ANS net income/net sales
return on assets -✔✔ANS net income/average total assets
working capital -✔✔ANS current assets-current liabilities
fixed costs -✔✔ANS costs that remain constant as output changes
variable costs -✔✔ANS costs that vary directly with the level of production
direct costs -✔✔ANS Costs that can be specifically identified with a particular project o
activity.
indirect costs -✔✔ANS Costs that cannot be easily and accurately traced to a cost object
schedule of cost of goods manufactured -✔✔ANS Direct Materials used
+Direct Labor
+Factory Overhead
=total manufacturing cost
+beginning WIP
-ending WIP
=COGM
direct labor -✔✔ANS the work of factory employees that can be physically and directl
associated with converting raw materials into finished goods
