financial statement analysis coursera week 2 quiz answers
Income Statement Practice Quiz
1. True or False: Horizontal analysis results can be listed as either percentages or dollar amounts.
- True
- False
2. The following are aspects of the Income Statement except:
- Net Profit
- Gross Revenue
- Sales, General, and Administrative (SG&A)
- Long-term Liabilities
3. True or False: In vertical analysis, the gross sales or revenue is the base amount on a P&L statement.
- False
- True
4. If Amy's Aroma's operating expenses in 2020 were $45,000, and in 2019 they were $37,000, what would the percent change be? (hint, remember the formula: 𝚫% = $recent year - $older year / $older year x 100)
- 0.21%
- 112%
- -21%
- 21%
5. True or False: In vertical analysis, you compare each line item in the financial statement to the base amount as a percentage of that base amount.
- True
- False
Interpreting the Balance Sheet Practice Quiz
6. Deferred Revenues is an account that is found in:
- Current Assets
- Noncurrent Liabilities
- Current Liabilities
- Noncurrent Assets
7. Short-term Investments is an account that is found in:
- Noncurrent Liabilities
- Noncurrent Assets
- Current Liabilities
- Current Assets
8. Long-term debt securities issued by the company are called:
- Notes Payable
- Bonds Payable
- Deferred Revenue
- Common Stock
Shuffle Q/A 1
Interpret the Statement of Cash Flows Practice Quiz
9. Which section of the Statement of Cash Flows would you look to find cash flows related to inventory?
- Investing Activities
- Financing Activities
- Operating Activities
10. Which section of the Statement of Cash Flows would you look to find cash flows related to notes payable?
- Operating Activities
- Financing Activities
- Investing Activities