මුල්‍ය ප්‍රකාශන විශ්ලේෂණය

What is the main purpose of financial statement analysis?

• Calculate income tax

• Evaluate the financial position and performance of the company

• Determine stock prices

• Control expenses

Which of the following financial statements is referred to as the Income Statement?

• Balance Sheet

• Cash Flow Statement

• Profit and Loss Statement

• Debt Statement

How is the Current Ratio calculated?

• Current Assets / Current Liabilities

• Total Assets / Total Liabilities

• Issued Shares / Debt

• Profit / Income

What happens when the Gross Profit Margin increases?

• Increase in expenses

• Decrease in selling price

• Cost of goods

What is the result of an increase in the Gross Profit Margin?

• Increase in expenses

• Decrease in selling price

• Increase in goods price or decrease in costs

• Increase in debt

What does the Debt-to-Equity Ratio indicate?

• Company's short-term vulnerabilities

• Long-term financial stability

• Revenue growth

• Utilization of goods

What does 'Current Ratio 2:1' mean in financial ratio analysis?

• The company has current assets twice as much as current liabilities

• The company earns twice as much from debt transactions

• Revenue is more than expenses by a factor of two

• Stock price has increased by a factor of two

What is the ratio used to measure profitability in financial statement analysis?

• Current Ratio

• Debt-to-Equity Ratio

• Gross Profit Ratio

• Operating Profit Ratio

What does the Cash Flow Statement primarily show?

• Company's revenues and expenses

• Company's assets and liabilities

• Cash inflows and outflows

• Changes in stock prices

What could be the consequence of an increase in the Debt-to-Equity Ratio?

• Increase in the company's debt burden

• Increase in profits

• Increase in stock price

• Decrease in income