WGU C213 Verified Multiple Choice and Conceptual
Actual Final Exam Questions With Reviewed 100%
Correct Detailed Answers
Guaranteed Pass!!Current Update
1. External users of financial statements use financial statement analysis for -
ANSWER Investing decisions
2. When analyzing financial statements, prognosis is - ANSWER The
prediction of how a business will perform in the future
3. Relationships between financial statement amounts are called - ANSWER
Financial ratios
4. When analyzing financial statements, diagnosis is - ANSWER The
identification of where a business has problems
5. Which of the following is a measure of the liquid position of a corporation -
ANSWER Current ratio
6. Which of the following is one of the purposes of financial statement
analysis? - ANSWER Both diagnosis and prognosis
, 7. Which of the following transactions could increase a firm's current ratio -
ANSWER Payment of accounts payable
8. Which of the following ratios is used to measure a firm's leverage -
ANSWER Debt ratio
9. Which of the following ratios represents the proportion of borrowed funds
used to acquire the company's assets - ANSWER Debt ratio
10.Which of the following ratios is calculated using numbers from both the
income statement and the balance sheet - ANSWER Return on equity
11.Which of the following ratios is used to measure the profit earned on each
dollar of sales in a firm - ANSWER Return on sales
12.Which of the following ratios is a comparison of a financial statement
number to a market value number - ANSWER Price-earnings ratio
13.In a common-size income statement, each item on the statement is
expressed as a percentage of - ANSWER Revenue (sales revenue)
14.A useful tool in financial statement analysis is the common-size financial
statement. What does this tool enable the financial analyst to do - ANSWER
Compare the mix of revenue, and expenses, and determine efficient use
of resources within a company over time or between companies within a
given industry without respect to relative size.
Actual Final Exam Questions With Reviewed 100%
Correct Detailed Answers
Guaranteed Pass!!Current Update
1. External users of financial statements use financial statement analysis for -
ANSWER Investing decisions
2. When analyzing financial statements, prognosis is - ANSWER The
prediction of how a business will perform in the future
3. Relationships between financial statement amounts are called - ANSWER
Financial ratios
4. When analyzing financial statements, diagnosis is - ANSWER The
identification of where a business has problems
5. Which of the following is a measure of the liquid position of a corporation -
ANSWER Current ratio
6. Which of the following is one of the purposes of financial statement
analysis? - ANSWER Both diagnosis and prognosis
, 7. Which of the following transactions could increase a firm's current ratio -
ANSWER Payment of accounts payable
8. Which of the following ratios is used to measure a firm's leverage -
ANSWER Debt ratio
9. Which of the following ratios represents the proportion of borrowed funds
used to acquire the company's assets - ANSWER Debt ratio
10.Which of the following ratios is calculated using numbers from both the
income statement and the balance sheet - ANSWER Return on equity
11.Which of the following ratios is used to measure the profit earned on each
dollar of sales in a firm - ANSWER Return on sales
12.Which of the following ratios is a comparison of a financial statement
number to a market value number - ANSWER Price-earnings ratio
13.In a common-size income statement, each item on the statement is
expressed as a percentage of - ANSWER Revenue (sales revenue)
14.A useful tool in financial statement analysis is the common-size financial
statement. What does this tool enable the financial analyst to do - ANSWER
Compare the mix of revenue, and expenses, and determine efficient use
of resources within a company over time or between companies within a
given industry without respect to relative size.
