Finance and Accounting 3 - Corporate
Financial Statement Analysis Exam
Questions & Answers (Grade A+)
If you are trying to forecast your company's growth for the next
year, what should be your primary consideration? -
correct answer ✅the company's recent performance
ABC Corp's ROE has been decreasing over the last five years. How
can you use financial statements to find the reason why? -
correct answer ✅Use the statements to find trends, but keep in
mind there is usually not a single reason.
What can you use to compare companies in different industries? -
correct answer ✅Return on Equity
Why are common size financial statements used? -
correct answer ✅to compare companies of different sizes
When determining the average collection period, how is accounts
receivable turnover calculated? -
correct answer ✅Net Sales / Average Accounts Receivable
ABC Corp's 2019 ROE dropped fifty percent from 2018. If the reason
was return on sales, what component of the DuPont framework has
Financial Statement Analysis Exam
Questions & Answers (Grade A+)
If you are trying to forecast your company's growth for the next
year, what should be your primary consideration? -
correct answer ✅the company's recent performance
ABC Corp's ROE has been decreasing over the last five years. How
can you use financial statements to find the reason why? -
correct answer ✅Use the statements to find trends, but keep in
mind there is usually not a single reason.
What can you use to compare companies in different industries? -
correct answer ✅Return on Equity
Why are common size financial statements used? -
correct answer ✅to compare companies of different sizes
When determining the average collection period, how is accounts
receivable turnover calculated? -
correct answer ✅Net Sales / Average Accounts Receivable
ABC Corp's 2019 ROE dropped fifty percent from 2018. If the reason
was return on sales, what component of the DuPont framework has
