Financial Analysis and Cash Flow Quiz

The process of analyzing financial statements to identify trends and relationships between different financial items.

A type of ratio that measures a company's ability to meet its short-term financial obligations.

A type of ratio that measures how profitable a company is.

A financial statement that tracks a company's cash inflows and outflows during a specific period.

The practice of recording business transactions in a chronological order in a specific format.

A reduction in the price of goods or services.

A financial statement that presents a company's assets, liabilities, and equity at a specific point in time.

A financial statement that shows a company's revenues, expenses, and net profit or loss over a specific period.

The value of goods that a company has on hand at the end of an accounting period.

A financial statement that summarizes the transactions that occurred during a specific period, but does not provide a complete picture of a company's financial position.

A type of single entry system where records are kept for personal and cash accounts but not for other accounts, like debtors or creditors.

A set of broad accounting rules and guidelines that companies follow when preparing financial statements.

Basic assumptions that are fundamental to the practice of accounting.

An accounting concept that requires companies to use the same accounting methods and procedures from one period to the next.

An accounting concept that allows companies to present information in a way that is clear, concise, and understandable.

An accounting concept that requires companies to record transactions based on objective evidence.

An accounting concept that requires companies to only record transactions that are material or significant to the company's financial position.

An accounting concept that assumes that a company will continue to operate in the foreseeable future.

An accounting concept that requires companies to match expenses with the revenues they generate.

An accounting concept that states that companies should record assets at their original cost.

Shares that are issued to investors at their face value.

Shares that are issued to investors at a price lower than their face value.

Shares that are issued to investors at a price higher than their face value.

A measure of a company's long-term debt in relation to its total assets.

A measure of a company's profitability, calculated by dividing net profit by net sales.

A measure of a company's profitability, calculated by dividing net profit by total assets.

A measure of a company's profitability, calculated by dividing net profit by total equity.

A transaction that involves an exchange of goods or services for cash.

A transaction that does not involve an exchange of cash. For example, buying a product on credit, borrowing money from a bank.

A financial statement that shows the cash inflows and outflows of a company during a specific period.

A measure of a company's ability to meet its debt obligations, calculated by dividing net income plus non-cash expenses by total debt payments.

A measure of the proportion of owner's funds to total funds invested in the business, calculated by dividing total equity by total assets.