staple of business exams, case studies present students with real-world business scenarios and ask them to apply their knowledge to solve complex problems. Case studies evaluate students' ability to think critically and make
strategic decisions.Essay/Short Answer Questions: These types of questions test the student’s ability to explain and analyze business concepts in a detailed and coherent manner.1.3. Skills Tested in Business ExamsCritical
Thinking and Problem-Solving: Business exams often include case studies that challenge students to apply theoretical knowledge to real-life situations. These tests assess decision-making skills, as well as the ability to evaluate
various business alternatives.Quantitative Analysis: For subjects like finance or economics, business exams often require students to perform calculations and interpret data. The ability to analyze financial statements, project
revenues, and manage budgets is essential.Communication and Writing Skills: Business exams may require students to present ideas clearly and concisely. Students must convey complex concepts in a way that demonstrates their
understanding of business principles.1.4. Preparing for Business ExamsPreparing for business exams involves mastering both conceptual understanding and practical application. Students are encouraged to study theories and
frameworks but also to keep up-to-date with current business trends. Case studies from leading businesses can be helpful, as they illustrate how business concepts are applied in real-world scenarios. Group discussions and
practicing sample case studies can aid in refining analytical skills.________________________________________2. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal
principles, case law, legal frameworks, and ethical issues. It prepares students for legal practice, with specializations that may include constitutional law, criminal law, corporate law, human rights law, or intellectual property
law.2.2. Structure of Law ExamsLaw exams typically
TEST BANK FOR
Financial Statement Analysis A Data Analytics Approach 2024 Release By Robert Resutek and
Vernon Richardson
Chapter 1-10 Answers are at the End of Each Chapter
Chapter 1
Student name:
1) Financial statement analysis (FSA) is the process of using analytical techniques to examine
and compare financial statements and other relevant data to evaluate the past and predict the
future for decision-making purposes.
⊚ true
⊚ false
2) In general, it is important to master the past before attempting to forecast the future.
⊚ true
⊚ false
3) Customers use financial statement analysis to determine if they will be paid for the products
or services they provide.
⊚ true
⊚ false
4) Using a company’s past performance as a benchmark for the company’s current performance
is an appropriate diagnostic analytics technique.
⊚ true
⊚ false
5) Which of these stakeholders is most interested in performing financial statement analysis to
address the question of whether trade credit should be extended?
A) Supplier or vendor
B) Shareholder
C) Bank Lender
D) Employee
1
, 6) “Master the Past” from the FSA-AMPS model includes which of the following types of
analytics?
A) Descriptive Analytics and Diagnostic Analytics
B) Prescriptive Analytics and Diagnostic Analytics
C) Descriptive Analytics and Predictive Analytics
D) Diagnostic Analytics and Predictive Analytics
7) “Predict the Future” from the FSA-AMPS model includes which of the following types of
analytics?
A) Descriptive Analytics and Diagnostic Analytics
B) Prescriptive Analytics and Diagnostic Analytics
C) Prescriptive Analytics and Predictive Analytics
D) Diagnostic Analytics and Predictive Analytics
staple of business exams, case studies present students with real-world business scenarios and ask them to apply their knowledge to solve complex problems. Case studies evaluate students' ability to think
critically and make strategic decisions.Essay/Short Answer Questions: These types of questions test the student’s ability to explain and analyze business concepts in a detailed and coherent manner.1.3. Skills
Tested in Business ExamsCritical Thinking and Problem-Solving: Business exams often include case studies that challenge students to apply theoretical knowledge to real-life situations. These tests assess
decision-making skills, as well as the ability to evaluate various business alternatives.Quantitative Analysis: For subjects like finance or economics, business exams often require students to perform
calculations and interpret data. The ability to analyze financial statements, project revenues, and manage budgets is essential.Communication and Writing Skills: Business exams may require students to present
ideas clearly and concisely. Students must convey complex concepts in a way that demonstrates their understanding of business principles.1.4. Preparing for Business ExamsPreparing for business exams
involves mastering both conceptual understanding and practical application. Students are encouraged to study theories and frameworks but also to keep up-to-date with current business trends. Case studies
from leading businesses can be helpful, as they illustrate how business concepts are applied in real-world scenarios. Group discussions and practicing sample case studies can aid in refining analytical
skills.________________________________________2. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal frameworks, and
ethical issues. It prepares students for legal practice, with specializations that may include constitutional law, criminal law, corporate law, human rights law, or intellectual property law.2.2. Structure of Law
ExamsLaw exams typically
8) In which component of the AMPS model does sensitivity analysis fit?
A) Ask the Question
B) Master the Data
C) Perform the Analysis
D) Share the Story
9) Using a visualization to communicate the results of cash flow analysis is an example of
which component of the AMPS model?
A) Ask the Question
B) Master the Data
C) Perform the Analysis
D) Share the Story
10) What happens to Bank of America’s profits if the interest rates change in the future from
three to four percent? This question is an example of what type of analytics?
A) Descriptive analytics
B) Diagnostic analytics
C) Predictive analytics
D) Prescriptive analytics
2
, 11) Determining the sensitivity of net income at a bank to potential changes in interest rates
would be an example of what type of analytics?
A) Prescriptive analytics
B) Descriptive analytics
C) Diagnostic analytics
D) Predictive analytics
12) Determining the intrinsic value of a stock based on forecasted financial performance and
uncertainty would be an example of what type of analytics?
A) Prescriptive analytics
B) Descriptive analytics
C) Diagnostic analytics
D) Predictive analytics
staple of business exams, case studies present students with real-world business scenarios and ask them to apply their knowledge to solve complex problems. Case studies evaluate students' ability to think
critically and make strategic decisions.Essay/Short Answer Questions: These types of questions test the student’s ability to explain and analyze business concepts in a detailed and coherent manner.1.3. Skills
Tested in Business ExamsCritical Thinking and Problem-Solving: Business exams often include case studies that challenge students to apply theoretical knowledge to real-life situations. These tests assess
decision-making skills, as well as the ability to evaluate various business alternatives.Quantitative Analysis: For subjects like finance or economics, business exams often require students to perform
calculations and interpret data. The ability to analyze financial statements, project revenues, and manage budgets is essential.Communication and Writing Skills: Business exams may require students to present
ideas clearly and concisely. Students must convey complex concepts in a way that demonstrates their understanding of business principles.1.4. Preparing for Business ExamsPreparing for business exams
involves mastering both conceptual understanding and practical application. Students are encouraged to study theories and frameworks but also to keep up-to-date with current business trends. Case studies
from leading businesses can be helpful, as they illustrate how business concepts are applied in real-world scenarios. Group discussions and practicing sample case studies can aid in refining analytical
skills.________________________________________2. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal frameworks, and
ethical issues. It prepares students for legal practice, with specializations that may include constitutional law, criminal law, corporate law, human rights law, or intellectual property law.2.2. Structure of Law
ExamsLaw exams typically
13) Forecasting sales and profits over the next ten years are examples of which of the following
analytics types?
A) Prescriptive analytics
B) Descriptive analytics
C) Diagnostic analytics
D) Predictive analytics
14) Which of the following is not one of the five forces?
A) Bargaining power of employees
B) Threat of new entrants
C) Bargaining power of buyers
D) Bargaining power of suppliers
15) If there are low legal barriers and a replicable business model, which of the following five
forces would be strong?
A) Threat of substitutes
B) Threat of new entrants
C) Bargaining power of buyers
D) Bargaining power of suppliers
3
, 16) If there are homogenous products and low switching costs, which of the following five forces
would be strong?
A) Threat of substitutes
B) Threat of new entrants
C) Bargaining power of buyers
D) Bargaining power of suppliers
17) If there is high supplier power (with respect to their five forces), which of the following
financial statement characteristics will be shown?
A) Higher accounts payable turnover ratios
B) Higher accounts receivable turnover ratios
C) Low long-term asset values
D) High inventory turnover ratios
staple of business exams, case studies present students with real-world business scenarios and ask them to apply their knowledge to solve complex problems. Case studies evaluate students' ability to think
critically and make strategic decisions.Essay/Short Answer Questions: These types of questions test the student’s ability to explain and analyze business concepts in a detailed and coherent manner.1.3. Skills
Tested in Business ExamsCritical Thinking and Problem-Solving: Business exams often include case studies that challenge students to apply theoretical knowledge to real-life situations. These tests assess
decision-making skills, as well as the ability to evaluate various business alternatives.Quantitative Analysis: For subjects like finance or economics, business exams often require students to perform
calculations and interpret data. The ability to analyze financial statements, project revenues, and manage budgets is essential.Communication and Writing Skills: Business exams may require students to present
ideas clearly and concisely. Students must convey complex concepts in a way that demonstrates their understanding of business principles.1.4. Preparing for Business ExamsPreparing for business exams
involves mastering both conceptual understanding and practical application. Students are encouraged to study theories and frameworks but also to keep up-to-date with current business trends. Case studies
from leading businesses can be helpful, as they illustrate how business concepts are applied in real-world scenarios. Group discussions and practicing sample case studies can aid in refining analytical
skills.________________________________________2. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal frameworks, and
ethical issues. It prepares students for legal practice, with specializations that may include constitutional law, criminal law, corporate law, human rights law, or intellectual property law.2.2. Structure of Law
ExamsLaw exams typically
18) If there is high buyer power (with respect to their five forces), which of the following
financial statement characteristics will be shown?
A) Lower accounts payable turnover ratios
B) Lower accounts receivable turnover ratios
C) Low long-term asset values
D) High inventory turnover ratios
19) Which of the following includes the collection of information that is relevant to the
company’s profitability and financial condition?
A) Data incorporation
B) Data reliability
C) Data identification
D) Data linking
20) Which of the following investigates the reason why past performance realizations are noted
in the financial statements?
A) Prescriptive analytics
B) Descriptive analytics
C) Diagnostic analytics
D) Predictive analytics
4
strategic decisions.Essay/Short Answer Questions: These types of questions test the student’s ability to explain and analyze business concepts in a detailed and coherent manner.1.3. Skills Tested in Business ExamsCritical
Thinking and Problem-Solving: Business exams often include case studies that challenge students to apply theoretical knowledge to real-life situations. These tests assess decision-making skills, as well as the ability to evaluate
various business alternatives.Quantitative Analysis: For subjects like finance or economics, business exams often require students to perform calculations and interpret data. The ability to analyze financial statements, project
revenues, and manage budgets is essential.Communication and Writing Skills: Business exams may require students to present ideas clearly and concisely. Students must convey complex concepts in a way that demonstrates their
understanding of business principles.1.4. Preparing for Business ExamsPreparing for business exams involves mastering both conceptual understanding and practical application. Students are encouraged to study theories and
frameworks but also to keep up-to-date with current business trends. Case studies from leading businesses can be helpful, as they illustrate how business concepts are applied in real-world scenarios. Group discussions and
practicing sample case studies can aid in refining analytical skills.________________________________________2. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal
principles, case law, legal frameworks, and ethical issues. It prepares students for legal practice, with specializations that may include constitutional law, criminal law, corporate law, human rights law, or intellectual property
law.2.2. Structure of Law ExamsLaw exams typically
TEST BANK FOR
Financial Statement Analysis A Data Analytics Approach 2024 Release By Robert Resutek and
Vernon Richardson
Chapter 1-10 Answers are at the End of Each Chapter
Chapter 1
Student name:
1) Financial statement analysis (FSA) is the process of using analytical techniques to examine
and compare financial statements and other relevant data to evaluate the past and predict the
future for decision-making purposes.
⊚ true
⊚ false
2) In general, it is important to master the past before attempting to forecast the future.
⊚ true
⊚ false
3) Customers use financial statement analysis to determine if they will be paid for the products
or services they provide.
⊚ true
⊚ false
4) Using a company’s past performance as a benchmark for the company’s current performance
is an appropriate diagnostic analytics technique.
⊚ true
⊚ false
5) Which of these stakeholders is most interested in performing financial statement analysis to
address the question of whether trade credit should be extended?
A) Supplier or vendor
B) Shareholder
C) Bank Lender
D) Employee
1
, 6) “Master the Past” from the FSA-AMPS model includes which of the following types of
analytics?
A) Descriptive Analytics and Diagnostic Analytics
B) Prescriptive Analytics and Diagnostic Analytics
C) Descriptive Analytics and Predictive Analytics
D) Diagnostic Analytics and Predictive Analytics
7) “Predict the Future” from the FSA-AMPS model includes which of the following types of
analytics?
A) Descriptive Analytics and Diagnostic Analytics
B) Prescriptive Analytics and Diagnostic Analytics
C) Prescriptive Analytics and Predictive Analytics
D) Diagnostic Analytics and Predictive Analytics
staple of business exams, case studies present students with real-world business scenarios and ask them to apply their knowledge to solve complex problems. Case studies evaluate students' ability to think
critically and make strategic decisions.Essay/Short Answer Questions: These types of questions test the student’s ability to explain and analyze business concepts in a detailed and coherent manner.1.3. Skills
Tested in Business ExamsCritical Thinking and Problem-Solving: Business exams often include case studies that challenge students to apply theoretical knowledge to real-life situations. These tests assess
decision-making skills, as well as the ability to evaluate various business alternatives.Quantitative Analysis: For subjects like finance or economics, business exams often require students to perform
calculations and interpret data. The ability to analyze financial statements, project revenues, and manage budgets is essential.Communication and Writing Skills: Business exams may require students to present
ideas clearly and concisely. Students must convey complex concepts in a way that demonstrates their understanding of business principles.1.4. Preparing for Business ExamsPreparing for business exams
involves mastering both conceptual understanding and practical application. Students are encouraged to study theories and frameworks but also to keep up-to-date with current business trends. Case studies
from leading businesses can be helpful, as they illustrate how business concepts are applied in real-world scenarios. Group discussions and practicing sample case studies can aid in refining analytical
skills.________________________________________2. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal frameworks, and
ethical issues. It prepares students for legal practice, with specializations that may include constitutional law, criminal law, corporate law, human rights law, or intellectual property law.2.2. Structure of Law
ExamsLaw exams typically
8) In which component of the AMPS model does sensitivity analysis fit?
A) Ask the Question
B) Master the Data
C) Perform the Analysis
D) Share the Story
9) Using a visualization to communicate the results of cash flow analysis is an example of
which component of the AMPS model?
A) Ask the Question
B) Master the Data
C) Perform the Analysis
D) Share the Story
10) What happens to Bank of America’s profits if the interest rates change in the future from
three to four percent? This question is an example of what type of analytics?
A) Descriptive analytics
B) Diagnostic analytics
C) Predictive analytics
D) Prescriptive analytics
2
, 11) Determining the sensitivity of net income at a bank to potential changes in interest rates
would be an example of what type of analytics?
A) Prescriptive analytics
B) Descriptive analytics
C) Diagnostic analytics
D) Predictive analytics
12) Determining the intrinsic value of a stock based on forecasted financial performance and
uncertainty would be an example of what type of analytics?
A) Prescriptive analytics
B) Descriptive analytics
C) Diagnostic analytics
D) Predictive analytics
staple of business exams, case studies present students with real-world business scenarios and ask them to apply their knowledge to solve complex problems. Case studies evaluate students' ability to think
critically and make strategic decisions.Essay/Short Answer Questions: These types of questions test the student’s ability to explain and analyze business concepts in a detailed and coherent manner.1.3. Skills
Tested in Business ExamsCritical Thinking and Problem-Solving: Business exams often include case studies that challenge students to apply theoretical knowledge to real-life situations. These tests assess
decision-making skills, as well as the ability to evaluate various business alternatives.Quantitative Analysis: For subjects like finance or economics, business exams often require students to perform
calculations and interpret data. The ability to analyze financial statements, project revenues, and manage budgets is essential.Communication and Writing Skills: Business exams may require students to present
ideas clearly and concisely. Students must convey complex concepts in a way that demonstrates their understanding of business principles.1.4. Preparing for Business ExamsPreparing for business exams
involves mastering both conceptual understanding and practical application. Students are encouraged to study theories and frameworks but also to keep up-to-date with current business trends. Case studies
from leading businesses can be helpful, as they illustrate how business concepts are applied in real-world scenarios. Group discussions and practicing sample case studies can aid in refining analytical
skills.________________________________________2. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal frameworks, and
ethical issues. It prepares students for legal practice, with specializations that may include constitutional law, criminal law, corporate law, human rights law, or intellectual property law.2.2. Structure of Law
ExamsLaw exams typically
13) Forecasting sales and profits over the next ten years are examples of which of the following
analytics types?
A) Prescriptive analytics
B) Descriptive analytics
C) Diagnostic analytics
D) Predictive analytics
14) Which of the following is not one of the five forces?
A) Bargaining power of employees
B) Threat of new entrants
C) Bargaining power of buyers
D) Bargaining power of suppliers
15) If there are low legal barriers and a replicable business model, which of the following five
forces would be strong?
A) Threat of substitutes
B) Threat of new entrants
C) Bargaining power of buyers
D) Bargaining power of suppliers
3
, 16) If there are homogenous products and low switching costs, which of the following five forces
would be strong?
A) Threat of substitutes
B) Threat of new entrants
C) Bargaining power of buyers
D) Bargaining power of suppliers
17) If there is high supplier power (with respect to their five forces), which of the following
financial statement characteristics will be shown?
A) Higher accounts payable turnover ratios
B) Higher accounts receivable turnover ratios
C) Low long-term asset values
D) High inventory turnover ratios
staple of business exams, case studies present students with real-world business scenarios and ask them to apply their knowledge to solve complex problems. Case studies evaluate students' ability to think
critically and make strategic decisions.Essay/Short Answer Questions: These types of questions test the student’s ability to explain and analyze business concepts in a detailed and coherent manner.1.3. Skills
Tested in Business ExamsCritical Thinking and Problem-Solving: Business exams often include case studies that challenge students to apply theoretical knowledge to real-life situations. These tests assess
decision-making skills, as well as the ability to evaluate various business alternatives.Quantitative Analysis: For subjects like finance or economics, business exams often require students to perform
calculations and interpret data. The ability to analyze financial statements, project revenues, and manage budgets is essential.Communication and Writing Skills: Business exams may require students to present
ideas clearly and concisely. Students must convey complex concepts in a way that demonstrates their understanding of business principles.1.4. Preparing for Business ExamsPreparing for business exams
involves mastering both conceptual understanding and practical application. Students are encouraged to study theories and frameworks but also to keep up-to-date with current business trends. Case studies
from leading businesses can be helpful, as they illustrate how business concepts are applied in real-world scenarios. Group discussions and practicing sample case studies can aid in refining analytical
skills.________________________________________2. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal frameworks, and
ethical issues. It prepares students for legal practice, with specializations that may include constitutional law, criminal law, corporate law, human rights law, or intellectual property law.2.2. Structure of Law
ExamsLaw exams typically
18) If there is high buyer power (with respect to their five forces), which of the following
financial statement characteristics will be shown?
A) Lower accounts payable turnover ratios
B) Lower accounts receivable turnover ratios
C) Low long-term asset values
D) High inventory turnover ratios
19) Which of the following includes the collection of information that is relevant to the
company’s profitability and financial condition?
A) Data incorporation
B) Data reliability
C) Data identification
D) Data linking
20) Which of the following investigates the reason why past performance realizations are noted
in the financial statements?
A) Prescriptive analytics
B) Descriptive analytics
C) Diagnostic analytics
D) Predictive analytics
4
