Ch 1 (IFSA) Introduction to Financial Statement Analysis

Question 1

In arriving at investment decisions or recommendations, analysts need to evaluate the ___, financial position, and value of the company issuing the securities.

Answer 1

performance

Question 2

In arriving at investment decisions or recommendations, analysts need to evaluate the performance, ___, and value of the company issuing the securities.

Answer 2

financial position

Question 3

In arriving at investment decisions or recommendations, analysts need to evaluate the performance, financial position, and ___ of the company issuing the securities.

Answer 3

value

Question 4

The ability to meet short-term obligations is generally referred to as ___

Answer 4

liquidity

Question 5

___ is generally referred to as liquidity

Answer 5

The ability to meet short-term obligations

Question 6

The ability to meet long-term obligations is generally referred to as ___.

Answer 6

solvency

Question 7

___ is generally referred to as solvency.

Answer 7

The ability to meet long-term obligations

Question 8

___ is the ability to react and adapt to financial adversities and opportunities.

Answer 8

Financial flexibility

Question 9

Financial flexibility is ___.

Answer 9

the ability to react and adapt to financial adversities and opportunities