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Module 6 - Pre-Test

Total questions: 10

Worksheet time: 10mins

Name
Class
Date
1.

Which of the following is the process of evaluating risks, performance, financial health, and prospects of a business?

a)

financial statement analysis

b)

financial ratio

c)

horizontal analysis

d)

vertical analysis

2.

Which technique involves the comparison of a line item (account) over several periods?

a)

financial statement analysis

b)

financial ratio

c)

horizontal analysis

d)

vertical analysis

3.

Which can be used to express one financial quantity related to another and assist with company and security valuations?

a)

financial statement analysis

b)

financial ratio

c)

horizontal analysis

d)

vertical analysis

4.

Which of the following refers to the ability to withstand a temporary problem?

a)

liquidity

b)

profitability

c)

solvency

d)

stability

5.

Which of the following measures a company's ability to satisfy its short-term obligations?

a)

liquidity

b)

profitability

c)

solvency

d)

stability

6.

Which of the following measures a company's ability to meet long-term commitments?

a)

liquidity

b)

profitability

c)

solvency

d)

stability

7.

Which of the following measures a company's ability to generate profits from its resources?

a)

liquidity

b)

profitability

c)

solvency

d)

stability

8.

Which of the following expresses each line as a percentage of sales?

a)

cash flows

b)

common-size SFP

c)

common-size SCI

d)

common-size SCE

9.

Which of the following shows each line account as a percentage of total assets?

a)

cash flows

b)

common-size SFP

c)

common-size SCI

d)

common-size SCE

10.

Which technique expresses each financial statement line item as a percentage of a base amount?

a)

financial statement analysis

b)

financial ratio

c)

horizontal analysis

d)

vertical analysis