Financial statement analysis enables managers to see their firm as outsiders see it, to ascertain compliance with credit restrictions, to compare their firm with similar firms, and to identify potential strengths and weaknesses.
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Q1: Financial statement analysis is the process of
Q2: Financial statement analysis involves comparing financial statements
Q4: Because it relates elements from the income
Q5: Alternative accounting procedures such as methods of
Q6: Inflation or deflation does not affect comparisons
Q7: Because the income statement shows aggregated amounts
Q8: In vertical common size analysis, the dollar
Q9: In order to determine the meaning of
Q10: Vertical and horizontal analyses are limited in
Q11: Vertical analysis helps to identify significant changes
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