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ACCT 212 Week 1 Exam Questions And
Answers (Guaranteed A+)
Users of accounting information rely on financial statement analysis to make more informed
decisions when pursuing their goals. - Answer✔External
Identify which of the following specific areas are considered the building blocks of financial
statement analysis. (Check all that apply.) - Answer✔Solvency
Liquidity and efficiency
Market prospects
Profitability
Most users rely on financial statements, which include the (1) income statement, (2) balance
sheet, (3) statement of stockholders' equity, (4) statement of cash flows, and (5) notes to these
statements. - Answer✔General Purpose
A measurement of key relations between financial statement items is called _______ analysis. -
Answer✔Ratio
The purpose of financial statement analysis for (internal/external) users is to provide information
to improve efficiency and effectiveness. - Answer✔internal
Comparative financial statements show financial information in _____ columns. - Answer✔Side-
by-side
Which of the following areas are not considered to be one of the building blocks of financial
statement analysis? - Answer✔Ratio analysis
________ analysis is a form of horizontal analysis that can reveal patterns in data across periods
by comparing period amounts by base period amounts.
Multiple choice question. - Answer✔Trend
Most users rely on general-purpose financial statements, which include which of the following?
(Check all that apply.) - Answer✔Income statement
, ©EVERLY 2024/2025 ALL RIGHTS RESERVED.
Statement of cash flows
Notes to financial statements
Balance sheet
Statement of stockholders' equity
Vertical analysis is a tool to evaluate individual financial statement items or a group of items.
When analyzing income statement accounts, the base is usually (revenue/expenses/net income)
and for balance sheet accounts, the base is usually total (assets/liabilities/equity) . -
Answer✔Revenue
Assets
When analyzing income statement accounts, the base is usually _____ - Answer✔Revenue
When analyzing balance sheet accounts, the base is usually _____ - Answer✔total Assets
All of the following are standards used in financial statement analysis for comparisons: -
Answer✔industry
competitor
intracompany
A comparison of a company's financial condition and performance across time is called _______
analysis. - Answer✔horizontal
financial statements express each item as a percent of a base amount. The base amount is
assigned a value of 100%. - Answer✔Common-Size
______ financial statements show financial amounts in side-by-side columns on a single
statement. - Answer✔comparative
Trend percent is computed by taking the (analysis period amount ________) x 100. -
Answer✔divided by the base period
Data visualizations reveal: (Check all that apply). - Answer✔insights not easily seen by looking
at numbers
trends not easily seen by looking at numbers
What types of information does managerial accounting provide? (Check all that apply.) -
Answer✔Information for managers
Non-financial
Financial
ACCT 212 Week 1 Exam Questions And
Answers (Guaranteed A+)
Users of accounting information rely on financial statement analysis to make more informed
decisions when pursuing their goals. - Answer✔External
Identify which of the following specific areas are considered the building blocks of financial
statement analysis. (Check all that apply.) - Answer✔Solvency
Liquidity and efficiency
Market prospects
Profitability
Most users rely on financial statements, which include the (1) income statement, (2) balance
sheet, (3) statement of stockholders' equity, (4) statement of cash flows, and (5) notes to these
statements. - Answer✔General Purpose
A measurement of key relations between financial statement items is called _______ analysis. -
Answer✔Ratio
The purpose of financial statement analysis for (internal/external) users is to provide information
to improve efficiency and effectiveness. - Answer✔internal
Comparative financial statements show financial information in _____ columns. - Answer✔Side-
by-side
Which of the following areas are not considered to be one of the building blocks of financial
statement analysis? - Answer✔Ratio analysis
________ analysis is a form of horizontal analysis that can reveal patterns in data across periods
by comparing period amounts by base period amounts.
Multiple choice question. - Answer✔Trend
Most users rely on general-purpose financial statements, which include which of the following?
(Check all that apply.) - Answer✔Income statement
, ©EVERLY 2024/2025 ALL RIGHTS RESERVED.
Statement of cash flows
Notes to financial statements
Balance sheet
Statement of stockholders' equity
Vertical analysis is a tool to evaluate individual financial statement items or a group of items.
When analyzing income statement accounts, the base is usually (revenue/expenses/net income)
and for balance sheet accounts, the base is usually total (assets/liabilities/equity) . -
Answer✔Revenue
Assets
When analyzing income statement accounts, the base is usually _____ - Answer✔Revenue
When analyzing balance sheet accounts, the base is usually _____ - Answer✔total Assets
All of the following are standards used in financial statement analysis for comparisons: -
Answer✔industry
competitor
intracompany
A comparison of a company's financial condition and performance across time is called _______
analysis. - Answer✔horizontal
financial statements express each item as a percent of a base amount. The base amount is
assigned a value of 100%. - Answer✔Common-Size
______ financial statements show financial amounts in side-by-side columns on a single
statement. - Answer✔comparative
Trend percent is computed by taking the (analysis period amount ________) x 100. -
Answer✔divided by the base period
Data visualizations reveal: (Check all that apply). - Answer✔insights not easily seen by looking
at numbers
trends not easily seen by looking at numbers
What types of information does managerial accounting provide? (Check all that apply.) -
Answer✔Information for managers
Non-financial
Financial
