Question

In: Accounting

6 Three of the most common tools of financial analysis are: Multiple Choice Financial reporting, ratio...

6

Three of the most common tools of financial analysis are:

Multiple Choice

  • Financial reporting, ratio analysis, vertical analysis.

  • Ratio analysis, horizontal analysis, financial reporting.

  • Horizontal analysis, vertical analysis, ratio analysis.

  • Trend analysis, financial reporting, ratio analysis.

  • Vertical analysis, political analysis, horizontal analysis.

7

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

Multiple Choice

  • Horizontal analysis.

  • Vertical analysis.

  • Political analysis.

  • Financial reporting.

  • Investment analysis.

8

The measurement of key relations among financial statement items is known as:

Multiple Choice

  • Financial reporting.

  • Horizontal analysis.

  • Investment analysis.

  • Ratio analysis.

  • Risk analysis.

9

Horizontal analysis:

Multiple Choice

  • Is a method used to evaluate changes in financial data across time.

  • Is also called vertical analysis.

  • Is the presentation of financial ratios.

  • Is a tool used to evaluate financial statement items relative to industry statistics.

  • Evaluates financial data across industries.

10

The dollar change for a comparative financial statement item is calculated by:

Multiple Choice

  • Subtracting the analysis period amount from the base period amount.

  • Subtracting the base period amount from the analysis period amount.

  • Subtracting the analysis period amount from the base period amount, dividing the result by the base period amount, then multiplying that amount by 100.

  • Subtracting the base period amount from the analysis period amount, dividing the result by the base period amount, then multiplying that amount by 100.

  • Subtracting the base period amount from the analysis amount, then dividing the result by the base amount.

Solutions

Expert Solution

Answer 6

Horizontal analysis, vertical analysis, ratio analysis.

Explanation:

the 3 main methods to analyze financial statements are

  • Horizontal analysis,
  • vertical analysis,
  • ratio analysis.

Answer 7

Horizontal analysis.

Explanation:

Horizontal analysis, also known as Comparative analysis helps to analyze the company's financial statements over time i.e. between years.

Answer 8

Ratio analysis.

Explanation:

Ratio analysis shows the relationship between various components of the financial statements.

Answer 9

Is a method used to evaluate changes in financial data across time.

Explanation:

Horizontal analysis, also known as Comparative analysis helps to analyze the company's financial statements over time i.e. between years.

Answer 10

Subtracting the base period amount from the analysis period amount.

Explanation:

In comparative financial statements, Dollar change is calculated as Current year - Base year

In case of any doubt, please comment.

ekkarill92 answered 1 year ago
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