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WorksheetsAccounting Financial Statement Analysis Vocabulary
Total questions: 23
Worksheet time: 23mins
Common size analysis is also known as ———————— analysis
Vertical Analysis
Horizontal Analysis
While preparing Common Size Statement, each item of income statement is expressed as % of
Total Income
Revenue from operation
Other Income
Profit before tax
How do you calculate Gross Profit?
Sales - COGS
Sales - NP
COGS - Expenses
COGS - NP
The current ratio is also known as the:
Quick ratio
Working capital ratio
Cash flow ratio
Capital structure ratio
Financial analysis is used only by the creditors.
True
False
What does PPE stand for?
Payable, Property, and Equipment
Prepaid, Property, and Expenses
Prepaid, Property, and Equipment
Plant, Property and Equipment
What does a current ratio tell us?
A higher current ratio indicates better liquidity.
A lower current ratio indicates better liquidity
A higher current ratio indicates what portion of assets are tied up in slow moving inventory
A lowercurrent ratio indicates what portion of assets are tied up in slow moving inventory
What does liquidity mean?
The company's ability to pay its obligations.
The company's ability to collect its receivables.
The company's ability to increase financing
The company's ability to obtain a new loan
Which is not a quick asset?
Cash equivalents
Notes receivable
Inventories
Cash substitutes
NOT IN THE CHOICES
Cost of goods sold divided by average inventory
Inventory turnover
Cost of goods sold margin
Inventory margin
Days sales in receivables
NOT IN THE CHOICES
If net sales are P1,500,000 and accounts receivable amount to P300,000, how long is the average collection period?
36.00 days
45.00 days
64.00 days
72.00 days
NOT IN THE CHOICES
Competitive ratio is comparing ratio of the firm with the another firm within the same industry.
True
False
