Reference no: EM133004185

Questions -

1. What is the objective of financial statement analysis?

2. What are some of the indications of satisfactory short-term solvency or working capital position of a business firm?

3. What are some of the tests of a sound or healthy long-term financial position?

4. Give some indications of managerial efficiency in the use of company resources.

5. What are the most commonly used techniques in the analysis and interpretation of financial statements?

6. What are the steps involved in using trend percentages in financial analysis?

7. Distinguish between horizontal and vertical analysis of financial statement data

8. What is the basic objective in looking at trends in financial ratios and other data?

9. Define trend percentages

10. Discuss the steps in analyzing financial statements using trend percentages.

11. In financial statement analysis, what is the basic objective of observing trends in data and ratios? Suggest some other standards of comparison.

12. Distinguish between trend percentages and component percentages.

13. Which would be better suited for analyzing the change in sales over a term of several years?

14. Nets sales of the Premiere General Store have been increasing at a reasonable rate, but net income has been declining steadily as a percentage of these sales. What appears to be the problem?

15. Under what circumstances would you consider a corporate net income of P1millionfor the year as being unreasonably low? Under what circumstances would you consider a corporate profit of P1 million as being unreasonably high?