11. Which of the following is NOT the purpose of financial statement analysis?

1. To evaluate the companys non-financial measures effectiveness.
2. To evaluate the current performance of a company with an ideas toward correcting problem areas.
3. To use the past performance of a company to predict how it will do in the future.
4. To compare the performance of the company with other competitors within the same industry.

12. The following are the main ways to analyze financial statements EXCEPT for:

1. Horizontal analysis
2. SWOT analysis
3. Vertical analysis
4. Ratio analysis

13. Return on total assets is a function of:

1. interest rates and pre-tax profits
2. the debt-equity ratio
3. the after-tax profit margin and the asset turnover ratio
4. sales and fixed assets

14. Which of the following ratios gives information on the amount of profits reinvested in the firm over the years?

1. Sales/Total assets
2. Debt/Total assets
3. Debt/Equity
4. Retained earnings/Total assets