ACCT 212 Week 1 Questions and Verified
Answers
users of accounting information rely on financial statement analysis to make more
informed decisions when pursuing their goals. Correct Answer: External
Identify which of the following specific areas are considered the building blocks of
financial statement analysis. (Check all that apply.) Correct 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. Correct Answer: General Purpose
A measurement of key relations between financial statement items is called
_______ analysis. Correct Answer: Ratio
The purpose of financial statement analysis for (internal/external) users is to
provide information to improve efficiency and effectiveness. Correct Answer:
internal
Comparative financial statements show financial information in _____ columns.
Correct Answer: Side-by-side
Which of the following areas are not considered to be one of the building blocks of
financial statement analysis? Correct 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. Correct Answer: Trend
Most users rely on general-purpose financial statements, which include which of
the following? (Check all that apply.) Correct Answer: Income statement
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) . Correct Answer: Revenue
Assets
When analyzing income statement accounts, the base is usually _____ Correct
Answer: Revenue
When analyzing balance sheet accounts, the base is usually _____ Correct Answer:
total Assets
All of the following are standards used in financial statement analysis for
comparisons: Correct Answer: industry
competitor
intracompany
A comparison of a company's financial condition and performance across time is
called _______ analysis. Correct Answer: horizontal
Answers
users of accounting information rely on financial statement analysis to make more
informed decisions when pursuing their goals. Correct Answer: External
Identify which of the following specific areas are considered the building blocks of
financial statement analysis. (Check all that apply.) Correct 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. Correct Answer: General Purpose
A measurement of key relations between financial statement items is called
_______ analysis. Correct Answer: Ratio
The purpose of financial statement analysis for (internal/external) users is to
provide information to improve efficiency and effectiveness. Correct Answer:
internal
Comparative financial statements show financial information in _____ columns.
Correct Answer: Side-by-side
Which of the following areas are not considered to be one of the building blocks of
financial statement analysis? Correct 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. Correct Answer: Trend
Most users rely on general-purpose financial statements, which include which of
the following? (Check all that apply.) Correct Answer: Income statement
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) . Correct Answer: Revenue
Assets
When analyzing income statement accounts, the base is usually _____ Correct
Answer: Revenue
When analyzing balance sheet accounts, the base is usually _____ Correct Answer:
total Assets
All of the following are standards used in financial statement analysis for
comparisons: Correct Answer: industry
competitor
intracompany
A comparison of a company's financial condition and performance across time is
called _______ analysis. Correct Answer: horizontal
