Podcast
Questions and Answers
What is the main objective of a Comparative Income Statement?
What is the main objective of a Comparative Income Statement?
- Analyze and evaluate the operating results of a business (correct)
- List all expenses incurred by the business
- Facilitate the management of cash flow
- Predict future sales accurately
How can an increase in sales affect profitability according to the text?
How can an increase in sales affect profitability according to the text?
- Guarantee improved operational efficiency
- Always lead to increased profits
- Automatically reduce costs
- May not necessarily increase profits (correct)
In the context of a Comparative Income Statement, what should be studied in the first step?
In the context of a Comparative Income Statement, what should be studied in the first step?
- Net profit
- Taxes paid
- Gross profit (correct)
- Operating expenses
Which type of expenses should be deducted from gross profit to find operating profits?
Which type of expenses should be deducted from gross profit to find operating profits?
What will result in an increase in operating profit according to the text?
What will result in an increase in operating profit according to the text?
What does a Comparative Income Statement aim to help management with?
What does a Comparative Income Statement aim to help management with?
What does an interpreter look at to check the profitability of a concern?
What does an interpreter look at to check the profitability of a concern?
According to the guidelines for interpreting a Common Size Income Statement, what should be studied first?
According to the guidelines for interpreting a Common Size Income Statement, what should be studied first?
What can be shown as percentages of sales in a Common Size Income Statement?
What can be shown as percentages of sales in a Common Size Income Statement?
How can the profitability improve according to Common Size Income Statement guidelines?
How can the profitability improve according to Common Size Income Statement guidelines?
What is one significance of showing items in the income statement as percentages of sales?
What is one significance of showing items in the income statement as percentages of sales?
Which statement should be analyzed first according to the guidelines for interpretation of a Common Size Income Statement?
Which statement should be analyzed first according to the guidelines for interpretation of a Common Size Income Statement?
What is the total Revenue for the year 2014 based on the provided information?
What is the total Revenue for the year 2014 based on the provided information?
What was the Profit Before Tax for the year 2013?
What was the Profit Before Tax for the year 2013?
How is Working Capital calculated?
How is Working Capital calculated?
What financial aspect can be inferred from an increase in Working Capital?
What financial aspect can be inferred from an increase in Working Capital?
How should an increase in fixed assets be financed?
How should an increase in fixed assets be financed?
In the Balance Sheet analysis, what does an increase in long-term loans indicate?
In the Balance Sheet analysis, what does an increase in long-term loans indicate?
Why has the gross profit ratio improved in 2014 according to the text?
Why has the gross profit ratio improved in 2014 according to the text?
What action by the company helped increase the operating profit according to the text?
What action by the company helped increase the operating profit according to the text?
How much did the net profit ratio increase from 2013 to 2014 according to the text?
How much did the net profit ratio increase from 2013 to 2014 according to the text?
What helped improve the profitability of the company in 2014 according to the text?
What helped improve the profitability of the company in 2014 according to the text?
What does common-size income statement analysis involve?
What does common-size income statement analysis involve?
Why is percentage analysis used in balance sheets according to the text?
Why is percentage analysis used in balance sheets according to the text?
What does the trend analysis reveal about fixed assets from 2016 to 2019?
What does the trend analysis reveal about fixed assets from 2016 to 2019?
According to the trend analysis, what can be inferred about the investment in current assets?
According to the trend analysis, what can be inferred about the investment in current assets?
How have the total assets changed from 2016 to 2019 according to the trend analysis?
How have the total assets changed from 2016 to 2019 according to the trend analysis?
What conclusion can be drawn about the asset structure based on the trend analysis?
What conclusion can be drawn about the asset structure based on the trend analysis?
Which trend percentage indicates a decrease relative to the base year of 2016?
Which trend percentage indicates a decrease relative to the base year of 2016?
