Chapter 01 - 012

Question 0

Year-to-year change analysis

P28

Answer 0

3. 4.

Question 1

How is Comparative financial statement analysis being conducted?

P28

Answer 1

1. By reviewing …
4. Also compares …
5. Also referred …

Question 2

Rules of year-to-year change analysis

P28

Answer 2

1. Negative amount :
2. No amount for the base period :
3. Small amount :
4. No value in the next period :

Question 3

Index-number trend analysis

P30

Answer 3

1. A tool for long-term …
2. Requires choosing …
3. Base period :
4. Focus …
5. Must exercise care …
6. Adjustments :
7. Distortion due to …

Question 4

Common-size financial statement analysis

P31

Answer 4

1. Also called …

2. Useful in …

Question 5

In analyzing a balance sheet, a common-size analysis stresses two factors

Answer 5

1.

2.

Question 6

Temporal comparisons of a company’s common-size statements

P32

Answer 6

Z

Question 7

Why are common-size statements especially useful for intercompany comparison?

P32

Answer 7

3. 4.