QUESTION 1 Financial analysis is: a. The process of evaluating financial information & other information for decision-making b. An informal process used only by undergraduate business students c. Used only for calculating financial ratios d. Used in finance but not in accounting QUESTION 2 The six-step process for systematic financial analysis does not include: a. Financial analysis techniques b. Corporate overview c. Sampling analysis d. Detailed accounting analysis QUESTION 3 Using the six-step process, the corporate overview step includes: a. Industry analysis and business strategy b. Calculating all financial ratios c. Model building and financial ratios d. Earnings forecasting and footnote review 1. 1: Analysis of Financial Statements: Introduction Analysis of Financial Statements: Introduction Financial analysis indicates a company's relative strengths and weaknesses. -Select- use this information to improve the firm's operations and stock price; -Select- this information to evaluate whether borrowers have the ability to pay off loans; and security analysts use this information to forecast earnings, dividends, and stock prices. Financial analysis compares a firm's performance to other firms in the same industry and evaluates trends in the firm's financial position over time. -St used in financial analysis and they are grouped into five categories: (1) Liquidity, (2) asset management, (3) debt management, (4) profitability, and (5) market value. use are the tools Lenders Financial analysis indicates a company's relative strengths and weaknesse! -Select- use this information to improve the firm's operations and stock price; -Select- use this information to evaluate whether borrowers have the ability to pay off rity analysts use this information to forecast earnings, dividends, and stock prices. Financial analysis compares a firm's performance to other firms in the sam evaluates trends in the firm's financial position over time. -Select- used in financial analysis and they are grouped into five categories: (1) Liquidity, (2) asset management, (3) debt management, (4) profitability, and (5) market value. Customers Managers are the tools use landers customers managers pls Financial analysis indicates a company's relative strengths and weaknesses. -Select- use this information to improve the firm's operations and stock price-t this information to evaluate whether borrowers have the ability to pay off loans; and security analysts use this information to forecast earnings, dividends, and Financial analysis compares a firm's performance to other firms in the same industry and evaluates trends in the firm's financial position over time. -Select- used in financial analysis and they are grouped into five categories: (1) Liquidity, (2) asset management, (3) debt management, (4) profitability, and (5) market value. Financial analysis indicates a company's relative strengths and weaknesses. -Select- use this information to improve the firm's operations and stock price; -Select- this information to evaluate whether borrowers have the ability to pay off loans; and security analysts use this information to forecast earnings, dividends, and stock prices. Financial analysis compares a firm's performance to other firms in the same industry and evaluates trends in the firm's financial position over time -Select- used in financial analysis and they are grouped into five categories: (1) Liquidity, (2) asset management, (3) debt management, (4) profitability, use are the tools Statements Ratios value. Benchmarks 5. In the United State lighthouses have been financed mainly by ___ a. private owners out of taxes paid by ships registered under the American flag b. state governments out of general revenues c. the Federal government out of tariff revenues d. the Federal government out of general revenues