1. Which of the following will you want to gather before you do a financial analysis?

a. terms of loans

b. age and types of receivables

c. information on competitors

d. strategic plan

e. all of the above

2. (T/F) How the company decides to distribute its profits can have an impact on its cash flow and equity position.

3. (T/F) Organizations that operate using long-term plans will often sacrifice short-term returns for long-term goals.

4. (T/F) You can tell a lot about the priorites of an organization by looking at its budget.

5. Investors are primarily concerned about what facet of financial health?

a. sales

b. profitability

c. debt

d. production

6. Banks want assurance that the organization

a. sells lots of product

b. has a cool product

c. can repay the loan

7. Internal managers are concerned with

a. working capital

b. profitability

c. sales

d. production

e. all of the above

8. (T/F) Privately held organizations might not undergo an audit of their financial statements.

9. Metrics can be expressed as

a. fractions

b. percentages

c. whole numbers

d. colon fractions

e. multipliers

f. all of the above

10. (T/F) Use dollars and percentages in your financial analysis because they lend perspective to each other.

11. In this sort of fluctuation analysis, you turn everything into a percentage of a total, such as total revenue or total assets:

a. horizontal fluctuation analysis

b. common size fluctuation analysis

c. vertical fluxional analysis

12. (T/F) In using horizontal analysis, compare outlying years with the base year only.

13. The three categories of ratios are

a. profitability, liquidity, and financing

b. revenue, liquidity, and financing

c. liquidity, financing, and debt

14. (T/F) The MD&A is a great place to start your investigation of why finances changed between years.

15. Open book management asks that employees be

a. educated about how the business makes money

b. informed of financial performance often

c. given ownership of company

d. all of the above

16. You can benchmark financial results against

a. your own oraganization, over time

b. competitors

c. industry averages

d. all of the above