FINCON Chap 4

compares line-item data from a company's financial statements to reveal insights regarding profitability, liquidity, operational efficiency, and solvency.

Answer explanation

Ratio analysis

can mark how a company is performing over time, while comparing a company to another within the same industry or sector.

Answer explanation

Ratio analysis

offer useful insight into a company, theyshould be paired with.other metrics, to obtain abroader picture of a company's financial health.

Answer explanation

ratios

is a quantitative procedure of obtaininga look into a firm’s functional efficiency, liquidity,revenues, and profitability by analyzing its financial

records and statements.

Answer explanation

Ratio analysis

Ratio analysis is a quantitative procedure

of obtaining a look into a firm’s functional efficiency, liquidity,revenues, and profitability by analyzing its financial records and statements.

• True

• False

Ratio analysis is a qualitative procedure

of obtaininga look into a firm’s funct-

ional efficiency, liquidity,revenues, and

profitability by analyzing its financial

records and statements.

• True

• False

is a very important factor that will help in doing an analysis of the fundamentals of equity.

Answer explanation

Ratio analysis

tries to predict a trend, such as a bull

market run, and then ride that trend until data

suggests a trend reversal, such as a bull-to-bear market.

Answer explanation

Trend analysis

Trend analysis tries to predict a trend, such as a bull market run, and then ride that trend until data suggests a trend reversal, such as a bull-to-bear market.

• True

• False

Trend analysis tries to predict a trend, such as a bull market run, and then ride that trend until data suggests a trend reversal, such as a bear-bull market.

• True

• False