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
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