Financial Statement Analysis Questions -
1- Why are ratios and trends used in financial analysis?
2- What do the terms liquidity and solvency mean?
3- What is apparent from a horizontal presentation of financial statement information? A vertical presentation?
4- What is the significance of inventory turnover, and how is it calculated?
5- What is the difference between the current ratio and the quick ratio? What does each measure?
6- Why are the absolute amounts of limited use when comparing companies?
7- What is the difference between return on investment and return on equity?
8- Which ratios are used to measure long-term debt paying ability? How is each calculated?
9- What are some limitations of the earnings per share figure?
10- What is the formula for calculating return on investment (ROI)?
11- What is the information overload?
12- What is the price earnings ratio? Explain the difference between it and the dividend yield?
13- What environmental factors must be considered in analyzing companies?14- How do accounting principles effect financial statement analysis?