Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Net Sales

Financial Accounting

4. Merchandising Operations

Net Sales

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

The percent of fixed assets to total assets is an example of which type of financial analysis ratio?

Profitability ratio

Liquidity ratio

Vertical analysis ratio

Horizontal analysis ratio

Previous problemNext problem

Verified step by step guidance

Understand the concept of financial analysis ratios: These ratios are tools used to evaluate a company's financial performance and position. They are categorized into types such as profitability, liquidity, vertical analysis, and horizontal analysis ratios.

Define vertical analysis ratio: This type of ratio expresses each item in a financial statement as a percentage of a base amount, such as total assets or total sales. It helps in understanding the relative size of components within a financial statement.

Identify the context of the problem: The percent of fixed assets to total assets is calculated by dividing the fixed assets by the total assets and expressing the result as a percentage. This is a comparison within the same financial statement, which aligns with vertical analysis.

Differentiate from other types of ratios: Profitability ratios measure a company's ability to generate profit, liquidity ratios assess the ability to meet short-term obligations, and horizontal analysis ratios compare financial data across different periods. None of these fit the description provided in the problem.

Conclude that the correct type of ratio is vertical analysis ratio, as it involves analyzing the proportion of fixed assets relative to total assets within the same financial statement.