Horizontal analysis is also known as trend analysis. This analysis performs better for longterm analysis within the same company. However, selection of the base year is crucial. Depending on the base year, some items might be given more weight than the others. Care must also be taken to incorporate any accounting policy changes during the analysis period, because horizontal analysis is affected by changes in accounting methods.The correct answer is D. 

The subjective measure of how well a firm can use assets from its primary mode of business and generate revenues is called a financial performance. Therefore E is the correct answer and other options are not related with the definition.

Ultimate borrowers, ultimate lenders, financial intermediaries, financial instruments, and legal and administrative rules are five core components of a financial system, therefore the correct answer is E.

Profit = Sales - Variable Costs  -Fixed Costs = Quantity sold * (Price-Variable Cost per unit) - Fixed Costs = Q * (45-20) - 75,000 = 25,000

Hence, Q = 100,000 / 25 = 4,000 units 

Fund refers to money, which is preserved for a specific objective whether in the form of cash, credit, cheque, or other resources. D is the correct answer.

P*Q = VC*Q+FC+Operating Profit
where P is the sales price per unit, Q is the quantity produced and sold, VC is the variable cost per unit
and FC is the total fixed costs. As can be seen from the above equation the sales revenue is the product of the sales price per unit and the quantity sold. The sales revenue equals the variable costs of the products plus the total fixed costs and the operating profit. At a zero profit the break-even point is calculated which shows the quantity required to be produced and sold to cover up all the fixed and variable costs of the business.

We can directly calculate at t=0 PV = 10.000 / (1,10)5 = 10.000 / 1,61051 = 6.209,21

Financial managers are decision-makers in companies, serving to the best interest of companies that they are working for. Best interest of companies means best interest of company owners, who are called as shareholders. The degree to which best interest of shareholders are satisfied is usually reflected in outcomes of managers' decisions.

FV= 200.000* (1+0.06)(1+0.06)......... (1+0.6) [15 times]

200.000* 2.396=479.311

2000 / (0.06/12) = 400,000

(1+0.12/12)^12-1 = 0.1268 =12.68 %

The degree of operating leverage is a concept widely used to assess the operating risk of a business stemming from its cost structure. Basically, the degree of operating leverage shows how much the operating income of the business changes with a relative change in its sales. In fact it is a multiple depicting how many times the operating income of a business changes in relation to a percentage change in the sales.

Degree of OperatingLeverage(DOL) = %?EBIT / %?Sales

Future value of 500 deposited in a bank account for 2 years’ time under quarterly compounding with 12% interest rate is 633.39.

FV = 500 * (1 + 0,03)⁸

FV = 633,39

Current Assets = Total Assets - Fixed Assets = $240.000

Current Liabilities = Total Assets - Long-term Debts - Shareholders' Equity = $120.000

Current Ratio= Current assets/Current liabilities = $240.000 / $120.000 = 2

Providing false information to investors such as overstated profits is an example of a finance-related unethical behavior, which causes the reputation of the company to detoriate.

Depreciation expense is deducted from the total fixed costs not variable costs in cash break even calculation.

Contribution Margin =The sales price of the product -The unit variable cost = 50-10 = 40

Contribution Margin Ratio =Contribution Margin / The sales price of the product  = 40 / 50 = 0,8

The correct answer is A.

The goods and services consumed by the world population are produced by millions of businesses around the world established and operated by the same goal of profit maximization. These businesses invest without knowing the financial results of their efforts but there is a universal reality that no business can survive without profits. For this reason, it is pivotal for any business to estimate how much will it earn at an expected level of activity. The correct answer is C.