64.Financial statement analysis involves all of the following except:
A. The application of analytical tools to general-purpose financial statements and related data for making business decisions.
B. Transforming accounting data into useful information for decision-making.
C. Helping users to make better decisions.
D. Helping to reduce uncertainty in decision-making.
E. Assuring that the company will be more profitable in the future.
65.Evaluation of company performance can include comparison and/or assessment of all but which of the following?
A. Past performance.
B. Current performance.
C. Current financial position.
D. Future performance and risk.
E. External user needs and demands.
66.External users of financial information:
A. Are those individuals involved in managing and operating the company.
B. Include internal auditors and consultants.
C. Are not directly involved in operating the company.
D. Make strategic decisions for a company.
E. Make operating decisions for a company.
67.Internal users of financial information:
A. Are not directly involved in operating a company.
B. Are those individuals involved in managing and operating the company.
C. Include shareholders and lenders.
D. Include directors and customers.
E. Include suppliers, regulators, and the press.
68.The building blocks of financial statement analysis do not include:
A. External analyst services.
B. Solvency.
C. Profitability.
D. Market prospects.
E. Liquidity and efficiency.
69.Financial reporting refers to:
A. The application of analytical tools to general-purpose financial statements.
B. The communication of financial information useful for decision making.
C. General-purpose financial statements only.
D. Ratio analysis only.
E. Profitability.
70.The ability to meet short-term obligations and to efficiently generate revenues is called:
A. Liquidity and efficiency.
B. Solvency.
C. Profitability.
D. Market prospects.
E. Creditworthiness.
71.The ability to generate future revenues and meet long-term obligations is referred to as:
A. Liquidity and efficiency.
B. Solvency.
C. Profitability.
D. Market prospects.
E. Creditworthiness.
72.The ability to provide financial rewards sufficient to attract and retain financing is called:
A. Liquidity and efficiency.
B. Solvency.
C. Profitability.
D. Market prospects.
E. Creditworthiness.
73.The ability to generate positive market expectations is called:
A. Liquidity and efficiency.
B. Liquidity and solvency.
C. Profitability.
D. Market prospects.
E. Creditworthiness.