Q. In common size income statement analysis, which is taken as 100 percent?
✅ Correct Answer: (A)
sales
Analysis of Financial Statements MCQs and Notes
Q. Trend analysis is significant for ____________.
✅ Correct Answer: (B)
profit planning
Q. Financial statements are ____________.
✅ Correct Answer: (B)
recorded facts
Q. Funds flow statements are prepared so as to
✅ Correct Answer: (D)
all of the above
Q. Which of the following are Non-current assets?
✅ Correct Answer: (D)
all of the above
Q. The primary sections of a statement of cash flows are:
✅ Correct Answer: (A)
cash flows from investing, operating, and financing activities.
Q. The statement of cash flows tells us
✅ Correct Answer: (B)
how cash was created
Q. __________ analysis is the process of studying a series of ratios for a company and/or industry over time.
✅ Correct Answer: (B)
trend
Q. Which of the following is NOT a key ratio in the prediction of bankruptcy as developed by Edward Altman?
✅ Correct Answer: (A)
debt to equity
Q. Cash inflows arise from _____ assets, ________ liabilities, and ___________ stockholders' equity.
✅ Correct Answer: (C)
decreasing; increasing; increasing