Podcast
Questions and Answers
What is the main purpose of financial analysis for investors?
What is the main purpose of financial analysis for investors?
- Forecast future net income and cash flow
- Analyze competitive performance of a business
- Assess compliance with tax law
- Evaluate risks and returns on investment (correct)
What is one reason for external users to require financial information?
What is one reason for external users to require financial information?
- Forecast future cash flow
- Assess loans and interest payments
- Determine creditworthiness of a company (correct)
- Analyze the competitive performance of a business
Which party assesses the group's compliance with tax law and regulations?
Which party assesses the group's compliance with tax law and regulations?
- Lenders
- Tax agencies (correct)
- Creditors
- Managers
What might be a typical decision a manager makes using financial analysis?
What might be a typical decision a manager makes using financial analysis?
For what reason do creditors typically perform financial analysis?
For what reason do creditors typically perform financial analysis?
Who usually examines compliance with debt covenants in financial analysis?
Who usually examines compliance with debt covenants in financial analysis?
What is a typical decision to proceed with financial analysis for someone evaluating an equity investment for a portfolio?
What is a typical decision to proceed with financial analysis for someone evaluating an equity investment for a portfolio?
In financial analysis, what might a lender be primarily concerned with?
In financial analysis, what might a lender be primarily concerned with?
What is the focus of equity analysis, one of the two common categories mentioned?
What is the focus of equity analysis, one of the two common categories mentioned?
What would be a key reason for an analyst to evaluate a subsidiary or operating division of a parent company?
What would be a key reason for an analyst to evaluate a subsidiary or operating division of a parent company?
Flashcards are hidden until you start studying
