QUIZ BOWL IN FA

Creditors are most concerned with assessing:

• short-term liquidity

• long-term solvency

• ability to generate income and continuing basis

• short-term liquidity and long-term solvency

The tools and techniques used to analyze financial statements are divided into broad categories including all of the following except:

• ratio analysis

• vertical analysis

• horizontal analysis

• profitability analysis

Which of the following is not revealed on a common size statement of financial position?

• The debt structure of a firm

• The capital structure of a firm

• The peso amount of assets and liabilities

• The distribution of assets in which funds are invested

When an income statement is subjected to vertical analysis, the base is generally:

• net income after taxes

• gross profit

• net sales

• net income before taxes

Index numbers are used in

• trend analysis

• ratio analysis

• vertical analysis

• common-size statement

A company reported P10,000 net income for 2004, 12,000 for year 2005, and 13,000 for 2016. The percentage change in net icnome from 2005 to 2006 was:

• 10%

• 8.3%

• 7.7%

• 8.0%

Holly Corporation's net income was P400,000 in 2015 and P1,600,000 in 2016. What percentage increase in net income must Holly achieve in 2017 to offset the decline in profits in 2016?

• 60%

• 150%

• 600%

• 67%

The percentage change in any individual utem shown on comparative financial statements is calculated by dividing the peso amount of the change from the base period to the current period by:

• the amount shown for the current period

• the average of the amounts shown for the base and the current periods

• the base period amount

• 100%

Statement 1: Valid comparative financial analysis depends on the availability of data for appropriately defined industries.

Statement 2: Financial statement analysis involves little judgement on the part of analyst when industry comparisons are available.

• Statement 1 is false

• Statement 2 is false

• Both statement are false

• Both statement are true

Which of the following are used in comparative financial analysis as standards?

• Historical Standards

• Company Goals

• Industry Averages

• All of the above