Analysis of Financial Statements (Grade 10 NSC Matric Accounting): Quizzes
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Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What does financial statement analysis assess?
What does financial statement analysis assess?
Business's current & past financial status
What does a ratio show in financial analysis?
What does a ratio show in financial analysis?
The relationship between 2 financial values
Why must ratios be compared with previous years?
Why must ratios be compared with previous years?
A ratio alone tells you very little
What does profitability measure?
What does profitability measure?
How successful a business is
What does return determine in financial analysis?
What does return determine in financial analysis?
If investors get fair return on investment
What does solvency refer to?
What does solvency refer to?
Ability to pay long-term debts on time
What does liquidity measure?
What does liquidity measure?
How quickly assets convert into cash
What is the key difference between liquidity and solvency?
What is the key difference between liquidity and solvency?
Liquidity is short-term, solvency long-term
What increases a business's financial risk?
What increases a business's financial risk?
More reliance on borrowed money
What is the fourth step in the ratio analysis process?
What is the fourth step in the ratio analysis process?
Comparison with previous years