Financial Statements Quiz

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Which of the following is a reason why financial statements are read by comparing the results to competitors or other industry participants?

To determine a company's health

To understand changes over time

To compare income statements

To identify the best performing companies (correct)

What type of financial statement reports a company's income for a specific period of time?

Comparative income statement (correct)

Statement of retained earnings

Cash flow statement

Balance sheet

How can financial statements be read to better understand changes over time?

By comparing the results to competitors

By comparing the results to prior periods (correct)

By comparing the balance sheets

By comparing the income statements

How can financial statements be read to determine a company's health?

By comparing the income statements Signup and view all the answers

Which financial statement can be used to compare a company's income from one year to another?

Income statement Signup and view all the answers

What is one way financial statements can be read to better understand changes over time?

By comparing the income statements Signup and view all the answers

What is one way financial statements can be read to compare a company's performance to its competitors?

Comparing financial ratios Signup and view all the answers

Which of the following is NOT a way to read financial statements?

Assessing customer satisfaction Signup and view all the answers

Why is it important to compare financial statements to prior periods?

To understand changes over time Signup and view all the answers

Which of the following is NOT a type of financial statement?

Profit and loss statement Signup and view all the answers

Financial Statements Quiz

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Questions and Answers

Which of the following is a reason why financial statements are read by comparing the results to competitors or other industry participants?

What type of financial statement reports a company's income for a specific period of time?

How can financial statements be read to better understand changes over time?

How can financial statements be read to determine a company's health?

Which financial statement can be used to compare a company's income from one year to another?

What is one way financial statements can be read to better understand changes over time?

What is one way financial statements can be read to compare a company's performance to its competitors?

Which of the following is NOT a way to read financial statements?

Why is it important to compare financial statements to prior periods?

Which of the following is NOT a type of financial statement?

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