Question: Financial statement analysis involves all of the following except:

Answer: Assuring that the company will be more profitable in the future.

Question: The building blocks of financial statement analysis do not include:

Answer: External analyst services.

Question: The ability to provide financial rewards sufficient to attract and retain financing is called:

Answer: Profitability

Question: Standards for comparisons in financial statement analysis do not include:

Answer: Management standards.

Question: Three of the most common tools of financial analysis are:

Answer: Horizontal analysis, vertical analysis, ratio analysis.

Question: The measurement of key relations among financial statement items is known as:

Answer: Ratio analysis

Question: A financial statement analysis report does not include:

Answer: An auditor statement.

Question: Horizontal analysis:

Answer: Is a method used to evaluate changes in financial data across time.

Question: Current assets minus current liabilities is:

Answer: Working capital.

Question: A component of operating efficiency and profitability, calculated by expressing net income as a percent of net sales, is the:

Answer: Profit margin ratio.