Question 1

Ratios may be expressed as (1) ________, (2) ________, or (3) ________.

Accepted Answer

The answer of Ratios may be expressed as (1) ________,...

Question 2

The comparison of a company's financial condition and performance to a base amount is known as ________.

Accepted Answer

The answer of The comparison of a company's financial condition...

Question 3

The debt ratio, the equity ratio, debt-to-equity ratio, and times interest earned are all ________ ratios.

Accepted Answer

The answer of The debt ratio, the equity ratio, debt-to-equity...

Question 4

________ ratios include the price-earnings ratio and dividend yield.

Accepted Answer

The answer of ________ ratios include the price-earnings ratio and...

Question 5

________ is a method of analysis used to evaluate individual financial statement items or groups of items in terms of a specific base amount.

Accepted Answer

The answer of ________ is a method of analysis used...

Question 6

The gross margin ratio, return on total assets, and basic earnings per share are all ________ ratios.

Accepted Answer

The answer of The gross margin ratio, return on total...

Question 7

The comparison of a company's financial condition and performance across time is known as ________.

Accepted Answer

The answer of The comparison of a company's financial condition...

Question 8

The income level most likely to continue into the future is commonly referred to as ________.

Accepted Answer

The answer of The income level most likely to continue...

Question 9

Trend percentage is calculated by dividing ________ by ________ and multiplying the result by 100.

Accepted Answer

The answer of Trend percentage is calculated by dividing ________...

Question 10

Three of the most common tools of financial analysis are (1) ________, (2) ________, and (3) ________.

Accepted Answer

The answer of Three of the most common tools of...

Question 11

The measurement of key relationships between financial statement items is known as ________.

Accepted Answer

The answer of The measurement of key relationships between financial...

Question 12

A business segment is a part of a company that is separated by its (1) ________ or (2) ________.

Accepted Answer

The answer of A business segment is a part of...

Question 13

________ financial statements are reports where financial amounts are placed side-by-side in columns on a single statement for analytical purposes.

Accepted Answer

The answer of ________ financial statements are reports where financial...

Question 14

The current ratio and acid-test ratio are used to reflect the ________ of a business.

Accepted Answer

The answer of The current ratio and acid-test ratio are...

Question 15

Match between columns
                        Premises: A company's ability to generate future revenues and meet long-term obligations.
A company's ability to generate positive market expectations.
A statement where each amount is expressed as a percent of a base amount to reveal the relative importance of each financial statement item.
Examination of financial data across time.
A measure of solvency presented as the ratio of total liabilities to total equity.
The application of analytical tools to general-purpose financial statements and related data for making business decisions.
A company's ability to provide financial rewards sufficient to attract and retain capital.
A statement with amounts for two or more successive accounting periods placed in side-by-side columns, often with changes shown in dollar amounts and percentages.
The availability of resources to meet short-term obligations and to efficiently generate revenues.
The comparison of a company's financial condition and performance to a base amount.

Accepted Answer

The Answer of Liquidity and efficiency and Market prospects and is...

Quiz 13: Analysis of Financial Statements

Ratios may be expressed as (1) , (2) , or (3) .