CCIM 101 FINANCIAL ANALYSIS MIDTERM
EXAM NEWEST 2026 STUDY PAPER WITH
EXPERT VERIFIED SOLUTIONS
◉Users of FS . Answer: Concerned with what will happen in the future.
◉Stockholders / Shareholders . Answer: Concerned with future earnings
and dividends.
◉Creditors . Answer: Concerned with the company's future ability to
repay its debts.
◉FS Analysis . Answer: Examining trends in key financial data,
comparing financial data across companies, and analyzing financial
ratios to assess the financial health and future prospects of a company.
◉FS analysis is used by . Answer: External users and internal users to
provide valuable feedback regarding their company's performance and to
estimate its potential for earnings growth, stock price appreciation,
making dividend payments, and paying principal and interest on loans.
◉Need for Comparative Analysis . Answer: Comparative analysis is
necessary for evaluating financial performance.
, ◉Horizontal Analysis . Answer: Involves analyzing financial data over
time, computing year-to-year peso and percentage changes within a set
of financial statements.
◉Vertical Analysis . Answer: Focuses on the relations among financial
statement accounts at a given point in time, with common-size FS
expressing each account as a percentage.
◉Financial Ratios . Answer: Used to assess the company's liquidity,
asset management, debt management, profitability, and market
performance.
◉Liquidity . Answer: How quickly an asset can be converted to cash.
◉Current Ratio . Answer: A measure of short-term debt paying ability; a
declining current ratio might indicate a deteriorating financial condition.
◉Acid Test Ratio . Answer: A more rigorous test of a company's ability
to meet its short-term debts than the current ratio, excluding inventories
and prepaid expenses.
◉Asset Management . Answer: Creditors and stockholders expect a
company's assets to be deployed/utilized efficiently and effectively.
EXAM NEWEST 2026 STUDY PAPER WITH
EXPERT VERIFIED SOLUTIONS
◉Users of FS . Answer: Concerned with what will happen in the future.
◉Stockholders / Shareholders . Answer: Concerned with future earnings
and dividends.
◉Creditors . Answer: Concerned with the company's future ability to
repay its debts.
◉FS Analysis . Answer: Examining trends in key financial data,
comparing financial data across companies, and analyzing financial
ratios to assess the financial health and future prospects of a company.
◉FS analysis is used by . Answer: External users and internal users to
provide valuable feedback regarding their company's performance and to
estimate its potential for earnings growth, stock price appreciation,
making dividend payments, and paying principal and interest on loans.
◉Need for Comparative Analysis . Answer: Comparative analysis is
necessary for evaluating financial performance.
, ◉Horizontal Analysis . Answer: Involves analyzing financial data over
time, computing year-to-year peso and percentage changes within a set
of financial statements.
◉Vertical Analysis . Answer: Focuses on the relations among financial
statement accounts at a given point in time, with common-size FS
expressing each account as a percentage.
◉Financial Ratios . Answer: Used to assess the company's liquidity,
asset management, debt management, profitability, and market
performance.
◉Liquidity . Answer: How quickly an asset can be converted to cash.
◉Current Ratio . Answer: A measure of short-term debt paying ability; a
declining current ratio might indicate a deteriorating financial condition.
◉Acid Test Ratio . Answer: A more rigorous test of a company's ability
to meet its short-term debts than the current ratio, excluding inventories
and prepaid expenses.
◉Asset Management . Answer: Creditors and stockholders expect a
company's assets to be deployed/utilized efficiently and effectively.
