Financial
Statement
Analysis | Ratios,
Standardization &
Industry
Comparison
Study Guide
Financial Statement Analysis _ Ratios, Standardization & Industry Comparison
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Study Guide.pdf Page 1
,Page 2 of 20 Financial Statement Analysis_ Ratios, Standardization, and Industry Comparison 11/13/2026, 1:47:24 AM
What is the purpose of standardizing financial
statements?
To allow for comparison purposes across
different firms or time periods.
What are sources of cash?
Activities that bring in cash.
What are uses of cash?
Activities that involve spending cash.
Financial Statement Analysis_ Ratios, Standardization, and Industry Comparison.pdf
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, Page 3 of 20 Financial Statement Analysis_ Ratios, Standardization, and Industry Comparison 11/13/2026, 1:47:24 AM
What does an increase in an asset account
indicate?
It indicates a use of cash as the firm has bought
assets.
What does a decrease in a liability account
indicate?
It indicates a source of cash as the firm has
paid off liabilities.
Financial Statement Analysis_ Ratios, Standardization, and Industry Comparison.pdf
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