Financial statement analysis

Comparative statement show the changes in

• Percentages

• Absolute amounts

• Both (a) and (b)

• Ratios

From financial statement analysis the creditors are interested to know

• Liquidity

• Profit

• Efficiencies

• Share capital

While preparing common-size balance sheet each item of balance sheet is expressed as percentage of

• Non-current assets

• Current assets

• Non-current liabilities

• Total assets

Which analysis is considered as dynamic

• Horizontal analysis

• Vertical analysis

• Internal analysis

• External analysis

Which analysis is considered as static

• Horizontal analysis

• Vertical analysis

• Internal analysis

• External analysis

Creditors or suppliers are interested to know the

• Profitability of the firm in relation to turnover

• Profitability of the firm in relation to investors

• Short-term solvency/liquidation of the concern

• Effective utilisation of its (firm's) resources

Comparison of values of one period with those of another period for the same firm is

• Intra-firm comparison

• Inter-firm comparison

• Pattern comparison

• Trend comparison

Which of the following is not a limitation of financial statement analysis

• Ignores the qualitative elements

• Not free from personal bias

• Intra-firm comparison

• Ignores the price level changes