Fınancıal Statement Analysıs (ENG) — 2022-2023 Ara Çıkmış Sınav

1. Which of the following is not one of the uses of the income statement? A) It summarizes revenues and expenses B) It shows the annual results of the operations It shows the financial sources D) It ends with the net income E) It shows the profitability

2. Which of the following is the main advantage of vertical analysis against other analysis techniques? A) The proportion of each income statement item can be calculated to total balance sheet amount and/or to the total of its subgroup. B) The proportion of each balance sheet item can be calculated to total balance sheet amount and/or to the total of its subgroup. C) It may be possible to make meaningful comparisons of the numeric values and/or changes in the financial statements of the companies operating in the same sector. D) By stating the items in the balance sheet as the numeric values, it becomes possible to make comparisons. E) The percentage change in assets is lof. calculated and it becomes possible to make comparisons.

3. Which of the following conclusions cannot be drawn for a business entity that reports a net loss? A) Its cash flow from operations is a negative amount. B) The net loss decreases its owner's equity. C) Its financial performance is negative. D) The related time period is unsuccessful for the entity. E) Its expenses exceed its revenues.

4. Which of the following is true for income statement? A) Reports the financial performance as of a specific date. B) If the total of revenues and assets are higher than the total of expenses and liabilites, than it reports a net income. C) It reports the ability to pay the debts of a business. D) Reports the financial performance for a time period. E) It reports the net income or loss which is the difference between assets and liabilities.

5. Which of the following is not an advantage of horizontal analysis? A) Horizontal analysis is useful financial analysis tool in terms of showing changes on account (item) basis. B) Horizontal analysis is easy to observe the growth patterns while evaluating the results. C) Horizontal analysis allows businesses to compare their financial data with other businesses financials or industry averages. D) Applying horizontal analysis is simple. E) Trend analysis is the possibility that cumulative information over the years may cause misleading results.