FINANCIAL RATIOS

Question 1

FINANCIAL RATIOS

Answer 1

• LIQUIDITY
  -SOLVENCY/STABILITY -PROFITABILITY

Question 2

is a method of comparing and analyzing results of financial performance and financial position from different accounting periods.

Answer 2

Horizontal Analysis

Question 3

A method of analyzing financial results expressing each financial statement account or element as a component of a base. Use for single time period is a

Answer 3

Vertical Analysis

Question 4

Using the horizontal analysis method of financial statement. Compute for a peso change or variance & percentage change of cash account, in 2020 with a balance of P 1,000,000 and P 500,000 in 2019

Answer 4

P 500,000 & 100%

Question 5

The total sales of Helen Quinto Santos Merchandise is 500,000 and her cost of good sold is 150,000 in 2020. Using the vertical analysis of the financial statement, compute how much is the cost of goods sold in every one (1) peso of sales 7

Answer 5

P 0.30

Question 6

is an organizations activities which evaluates financial result from financial statements of entity’s business activities which helps financial users in making economic decisions.

Answer 6

Financial Analysis

Question 7

are mathematical comparisons of one number to another using a simple division problem. It involve the analyzing the various figures stated from financial statements to arrive at a meaningful information about the business performance and financial condition.

Answer 7

Financial Ratios