Financial Statement Analysis Theories Exam Questions & Answers (Grade A+).docx

Financial Statement Analysis Theories
Exam Questions & Answers (Grade
A+)
Financial Statements Analysis -
correct answer ✅Involves the process of separating the
components of the financial statements to determine their
relationship to each other, to the financial statement itself, or to the
past performance of the business and to other industry, and giving
meaning to their relationships


Financial Statements Analysis -
correct answer ✅Involves careful selection of data from financial
statements in order to assess and evaluate the firm's past
performance, its present condition, and future business potentials


Comparison of financial data
The need to look beyond ratios -
correct answer ✅Problems and Limitations in Financial
Statements Analysis (2)


Absolute peso amounts
Ratios
Percentages

, Financial Statement Analysis Theories
Exam Questions & Answers (Grade
A+)
Index numbers -
correct answer ✅Analytical Tools (4)


Horizontal Analysis
Vertical Analysis
Ratio Analysis
Analysis of variation in gross profit and net income
Cash Flow Analysis -
correct answer ✅Techniques Used in Financial Statements
Analysis (5)


Cash Flow Analysis -
correct answer ✅A detailed study of the net change in cash as a
result of operating, investing, and financing activities during the
period


Operating
Investing
Financing -
correct answer ✅Cash Flow Activities (3)