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WorksheetsAnalysis and Interpretation Lesson #1 Review
Total questions: 10
Worksheet time: 5mins
Name
Class
Date
1.
Analysis and Interpretation sits within which stage of accounting?
a)
Source Document
b)
Recording
c)
Reporting
d)
Advice and Decision Making
2.
The process of breaking down something complex into simpler, smaller proportions is known as...
a)
Analysis
b)
Interpretation
c)
Benchmark
d)
Evaluation
3.
The process of explaining the meaning of the completed analysis is....
a)
Interpretation
b)
Analysis
c)
Understandability
d)
Evaluation
4.
A Vertical Analysis is best used to examine:
a)
Income Statement
b)
Balance Sheet
c)
Profit and Loss
d)
Cash Flow Statement
5.
A Vertical Analysis in the Income Statement compares the figures in the report against what figure?
a)
Sales
b)
Revenues
c)
Expenses
d)
Bank
6.
A Vertical Analysis really shows us which Ratios?
a)
GPM / NPM / Expense Ratios
b)
NPM / GPM / WCR
c)
NPM / Debt Ratio
d)
NPM / GPM
7.
A vertical analysis is performed as
a)
$ figures are limited in what info they provide
b)
% are harder to understand
c)
The base amount of each figure is consistent
d)
comparability
8.
Graphical Representation of a Vertical Analysis is done as it increases
a)
Relevane
b)
Understandability
c)
Comparability
d)
Usefulness
9.
A Horizontal Analysis is similar to...
a)
Vertical Analysis
b)
Variance Reports
c)
Balance Sheets
d)
Trend Analysis
10.
When conducting a Trend Analysis which is better for comparison?
a)
Percentages
b)
Dollars
c)
Budgeted figures
d)
Forecasted figures
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