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h Watch TV and moviehttps/www.myherb M Inbox (5,717)- alicia My Schedule and Cr Saved Financial statement analysis involves all of the following except: Multiple Choice The application of analytical tools to general-purpose financial statements and related data for making business decisions. Transforming accounting data into useful information for decision-making. Helping users to make better decisions. Helping to reduce uncertainty in decision-making. Assuring that the company will be more profitable in the future ?Plex 60, 50111 Next

Solution

Question -1

Financial statement analysis involves all of the following except “Assuming that the company will be more profitable in the future”

Question -2

Three of the most common tools of financial analysis are “Horizontal analysis, Vertical analysis, Ratio analysis”

Question -3

Profit Margin = [Net Income / Net Sales] x 100

= [$134,000 / 773,000] x 100

= 17.34%

Question -4

Acid Test [Quick ratio] = [Total Current Assets – Inventory] / Total Current Liabilities

= [$183,000 – 73,000] / 126,000

= $110,000 / 126,000

= 0.87

= 0.87 : 1

Question -5

Managerial accounting information “Involves gathering information about costs for planning and control decisions”