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ch#5 of CF
ch#5 of CF
P 5-8
Required: Answer the following multiple-choice questions:
1. Which of the following statements is incorrect?
a.
b.
c.
d.
e.
2. A figure from this years statement is compared with a base selected from the
current year.
a.
b.
c.
d.
e.
8. Which analysis compares each amount with a base amount for a selected base
year?
a.
b.
c.
d.
e.
9. Suppose you are comparing two firms in the coal industry. Which type of
numbers would be most meaningful for statement analysis?
a. Relative numbers would be most meaningful for both firms, especially for
interfirm comparisons.
b. Relative numbers are not meaningful.
c. Absolute numbers would be most meaningful.
d. Absolute numbers are not relevant.
e. It is not meaningful to compare two firms.
10. Management is the user of financial analysis. Which of the following
comments does not represent a fair statement as to the management
perspective?
a.
b.
c.
d.