Terminology
Short Term Ratios
Long Term Ratios
Dare to Compare
Whiz Kid
100
A report listing a detailed summary of assets, liabilities and owner's equity on a specific date.
What is the balance sheet?
100
Creditors and external users.
What are the prime users of ratio analysis?
100
A financial indicator that usually lasts over one year.
What is a long term ratio?
100
One reports historical data of a business, the other places emphasis on the future.
What is Financial accounting vs. Managerial accounting?
100
Planning, organizing, directing, collecting and decision making.
What are the functions of financial accounting?
200
A statement that lists sourcesof revenue and expenses.
What is the Income Statement?
200
The ratio of a company's annual sales to its inventory.
What is Inventory Turnover?
200
3.25 to 1.0 is a generally acceptable result of this ratio.
What is the debt to equity ratio?
200
One is an indicator of financial position within one year and the other is an indicator of financial position longer than one year.
What is short-term vs. long term indicators (ratios)?
200
True or False. A quick ratio of 3 indicates that your company is fairly weak financially.
What is False?
300
Revenue less expenses.
What is net income or loss?
300
Current assets divided by current liabilities.
What is the Current Ratio?
300
Price sold divided by purchase price.
What is the calculation for a mark up?
300
This amount can be found on both the Statement of Cash Flow and the Balance Sheet.
What is net income/loss?
300
6% - 10% is the generally accepted range for this indicator.
What is Return on Owner's Equity?
400
Income Statements, Statement of Cash Flows, Balance Sheet.
What are the three main statements used in financial analysis?
400
The number of days receipt of cash from sales remains outstanding.
What is the Accounts Receivable Collection Period?
400
Net income divided by net sales.
What is the calculation for return on net sales?
400
Both are concerned with responsibility (or stewardship) to the organization.
What are financial and managerial accounting?
400
Managers, owners, accountants, controllers.
Who are people who should view the financial statements of a company?
500
A statement that shows separate items as a percentage rather than in dollar amounts.
What is a Common-Size Statement?
500
Current assets less inventory divided by current liabilities.
What is The Quick Ratio or Acid Test?
500
The amount of sales you are turning into profit for the business.
What is the rate of return?
500
This would be found on the Statement of Cash Flow as a credit and on the Balance sheet as a debit.
What is ending cash?
500
Total expenses and total revenues.
What is the area of the income statement that would indicate the success/failure of a business?
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