Fundamentals Of Accountancy, Business and Management 2

To enumerate the different categories of financial information. Solvency is also known as:

• 
  Profitability

• Liquidity

  
  

• Stability

  
  

• Adaptability

  
  

Horizontal analysis confines itself in a period of time and compares its components with a base item in the financial statement.

• Horizontal Analysis

  
  

• All of the choices

  
  

• Ratio Analysis

  
  

• Vertical Analysis

People or entities outside the organization who are interested in the company’s financial information.

• Owner

  
  

• Employees

  
  

• External Users

  
  

• Internal Users

  
  

People or entities inside the organization who are interested in the company’s financial information.

• External Users

• Government regulators
• Market analysts
• Internal Users

_____________________ makes use of common size financial statements to convert each financial statement item to its base year.

• Trend analysis
• Horizontal analysis
• Vertical analysis
• Ratio analysis

This type of analytical technique is considered "static".

• Horizontal Analysis

  
  

• Ratio Analysis

  
  

• Vertical Analysis

  
  

• All of the choices

  
  

The most widely used basis of fully understanding a company’s financial statements is the ___________.

• Liquidity

• Horizontal analysis

  
  

• Vertical analysis

  
  

• Ratio analysis

  
  

How many main categories does a financial information have?

• 3

• 7

• 8

• 5

It is the primary goal of all businesses to survive in the long run.

• Liquidity

  
  

• Stability

• Solvency

• Profitability

  
  

________________ makes use of common size financial statements to convert each financial statement item to its base year.

• Vertical Analysis

  
  

• Both of the given choices correct

  
  

• Horizontal Analysis

  
  

• Ratio Analysis