Quizzer Page for: Introduction to Financial Statement Analysis

Answer the following questions about the lecture...don't forget to submit them using the button at the bottom when you finish...we will grade your answers and e-mail you a digitally signed certificate of completion...

Answer the next 10 questions in the boxes provided
1.  Why can financial statement analysis only begin when the accountant's work is finished and the statements have been issued?


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2.  Each person who analyzes financial statements brings a separate set of needs to the process.  Comment.

 

3.    Name several important ratios and what they are used to show.


 

4. Cost of goods sold has increased and ending inventory has declined (but not through sales).  The inventory turnover ratio is high.  What might this mean?
 

5.  What sources of information might the analyst look at in addition to the financial statements to develop a sense of how a business is going?



6. What are some of the warning signs that financial statements might not be accurate?


7. What is the role of an interview process in interpreting financial statements? 

8.  Who are the people in an organization most involved in the production and presentation of its financial statements?

9.  Why are auditors concerned with the review and interpretation of financial statements from one reporting period to the next?

10.  What are some of the controls a reviewer looks for in an organization to assure herself that financial statement fraud is unlikely?

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