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er or A. Menti : 0n and e Xplain three Feasons for financial statement ana Question no.2 (Multiple Choices) Circle the letter of the correct ansy *sreeeee IS Onl Of the most valuable tools in financial analysis A. Analysis of the funds needs to the firm B. horizontal analysis C. vertical analysis D. ratio analysis E. all of the above 2. The ratio that Shows a firm’s ability to cover its current liabil current assets. A. leverage ratio B. liquidity ratio C. profitability ratio D. activity ratio E. all of the above 3. Summary of a firm’s revenues and expenses over a specified period net income or loss for the period and prepared on accrual basis A. financial statement position B. income statement C. sources and uses statement D. cash flow statement E. none of the above 4. The role of financial reporting is to provide information to help use profit Product. acid test or quick ratio economic decisions none of the above HOO mp 5. In cash flow statement, the purchasing bonds, ple of A. Investing Activities B. Financing Activities C. Operation Activities D. Operation and Investing Activities St) ME Consider a5 #** objectives of Ratio Analysis A. Increase profit A i aba salaries - Searching for new D. Improve policy sss none of the above 14. Which of the following consider 3 Limitations of Ratio Analysis 5 Pein difficult to raidaet deviations in ratios ; 7 industry category is o en to identi C. Seasonality doesn’t affects ratios ad D. Easy to compute E. none of the above 15. According to vertical analysis, all balance sheet items are divided by _ A. Total sales B. total equity C. net sales D. Total Assets E. all of the above involves analyzing financial data over time A. Vertical Analysis B. Common size C. Horizontal Analysis D. Ratio analysis E. all of the above 17. In horizontal analysis if cash was decreased that’s Will... .ccseenecersenseeeeoneese A. mixed cost B. Improving liquidity C. investing activities D. affect the liquidity of the company E. all of the above 3 Name VeRO eee e ee ee eee POON OOOO COTO EOO CON ORONUOI EOE DSCREN SDECEODENRE ROO ED Question no.1 A. Explain and comment on this sentences "Ratios are used by: Lenders, Stockholders and managers" (4 marks) i 4 sO §. One of these considey Ex: A. Trade Creditors — 8. Plan— Focus On A Opportunities. C Control ~ Focus On 0. Understand ~ Focus On d EAN1OF The Above Understang Focus On The Lic SSessing The @, Return On 9. This Section ing} udes cash and Purchase of gi and S€rvices 6. ‘ The role of Prepared by financ; cial State atement analysis ; Ompanies nalysis is to take financial reports making E. all of the above 7. ifthec urr io = r ent ratio = ¢ 3452.5 that’s mean A. each 1 dine ; r of cu He ; B. each 2.5 diner of eer dian eo eat Ase A sets have | dinner of current liabilities e current assets +current liabilities = 3.5 + Current liabilities 2.5 E. none of the above 8. 5 ; , when a firm has a higher asset turnover ratio than the industry average, this indicate (mean .-») A. the firm has a higher current ratio than other firms in the industry B. the firm is more likely to avoid solvency in the short run than other fi industry. C. the firm is more profitable than other firms in the industry D. the firm is utilizing assets more efficiently than other firms in the indu E. the firm has higher spending on new fixed assets than other firms in thi 9. what is the most important activities in cash flow statement A. investing activities B. financing activities C. operation activities D. operation and investing activities E. none of the above 10. According to framework of financial analysis, the first thing need to define is A. Analysis of the funds needs to the firm B. financing activities C. operation activities D. collect data E. none of the above 11. which of these not of financial statement analysis steps A. Establish objectives B. Collect data C. Conduct analysis D. weakness points E. none of the above A. Increase profit iscsi — earching for new E. none of the above 14. Which of the following consider 4:3 Limitations of Ratio Analysis etimes difficult to interpret deviations in rati ime ratios pap S industry category is often easy to identify - Seasonality doesn’t affects ratios D. Easy to compute E. none of the above 15. According to vertical analysis, all balance sheet items are divided by__ A, Total sales B. total equity net sales ‘Total Assets E. all of the above involves analyzing financial data over time A. Vertical Analysis . Common size Horizontal Analysis D. Ratio analysis E. all of the above 17. In horizontal analysis if cash was decreased that’s Will....cese00e* ogcdvectavensaae A. mixed cost B. Improving liquidity _ investing activities affect the liquidity of the company E. all of the above Cup Ten yy, 0 “ler p "pi. 0 Ey, Mal ty. "ors Meng Maly) . : i Wap: Potent; tirr Var, tne) i; Cr On % Ven, SMe rati,, es lysis OA i SLi te Meng oI ard ivig any nds thin, yo = Catt tamts; + "aos iin Fice much are the fixed costs? Give the Soreak-
