Topic 2

Question 1

financial institutions

Answer 1

can a company pay back the loan in the future

Question 2

shareholder

Answer 2

is the company able to generate sufficient return or added value

Question 3

supplier:

Answer 3

can the company pay the delivered goods on time

Question 4

customer

Answer 4

is their supplier a good company and will it contnue to to exist in the future

Question 5

Staff

Answer 5

trade union, the certified accountant, auditor, the government

Question 6

Financial analysis is not based on one ration

Answer 6

Financial analysis is not based on one ration
a ration whose value is judged unusually high or low

Question 7

compare amounts between different periods

Answer 7

= horizontal analysis

Question 8

vertical analysis

Answer 8

technique that examines the proportions of each line item in the income statement relative to a base figure to evaluate a company’s financial statements

Question 9

Structure percentage

Answer 9

amount assets/liabilities divided by total assets/ liabilities TIMES 100

Question 10

liquidity

Answer 10

the ability to pay back the short term liabilities

Question 11

4 important assets to keep in mind

Answer 11

stock and orders in progress
receivables <1 YR
current investments
cash