Financial Statement Analysis-Questions (1)
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BBA 4201: Financial Statement Analysis & Control 1. Describe some of the analytical uses to which financial statement analysis can be put. 2. What are the sources of financial information? 3. Who are the users of financial statements? 4. What are the objectives of financial statements? 5. What are the limitations of financial statement analysis? 6. Discuss the need for comparative analysis. 7. Identify the tools of financial statement analysis. 8. Explain and apply the horizontal analysis. 9. Identify and compute ratios used in applying a firm’s liquidity, profitability and solvency. 10. Why are the information needs of equity investors among the most demanding of all users of financial statement? 11. Differentiate between systematic risk and unsystematic risk and discuss the various components of latter. 12. Discuss the Capital Asset Pricing Model (CAPM) and explain how it deals with the problem of securities valuation of the market. 13. Explain how the Efficient Market Hypothesis (EMH) deals with the reaction of the market prices to the financial and other data. 14. Explain the concept of the trade-off between risk and return as well as its significance to portfolio construction. 15. Discuss the implications that the CAPM and EMH present for financial statement analysis. 16. What uses can the management of an enterprise make of financial statement analysis? 17. What is financial statement analysis? 18. Describe the major foundations of financial statement analysis discipline. 19. Why are financial statements important to the decision making process in financial analysis? 20. Discuss the relative importance of financial statement analysis in the total decisions report. 21. How useful is a comparative financial analysis? How do you make useful comparison? 22. Give four broad categories of analysis tools. 23. Is the
BBA 4201: Financial Statement Analysis & Control 1. Describe some of the analytical uses to which financial statement analysis can be put. 2. What are the sources of financial information? 3. Who are the users of financial statements? 4. What are the objectives of financial statements? 5. What are the limitations of financial statement analysis? 6. Discuss the need for comparative analysis. 7. Identify the tools of financial statement analysis. 8. Explain and apply the horizontal analysis. 9. Identify and compute ratios used in applying a firm’s liquidity, profitability and solvency. 10. Why are the information needs of equity investors among the most demanding of all users of financial statement? 11. Differentiate between systematic risk and unsystematic risk and discuss the various components of latter. 12. Discuss the Capital Asset Pricing Model (CAPM) and explain how it deals with the problem of securities valuation of the market. 13. Explain how the Efficient Market Hypothesis (EMH) deals with the reaction of the market prices to the financial and other data. 14. Explain the concept of the trade-off between risk and return as well as its significance to portfolio construction. 15. Discuss the implications that the CAPM and EMH present for financial statement analysis. 16. What uses can the management of an enterprise make of financial statement analysis? 17. What is financial statement analysis? 18. Describe the major foundations of financial statement analysis discipline. 19. Why are financial statements important to the decision making process in financial analysis? 20. Discuss the relative importance of financial statement analysis in the total decisions report. 21. How useful is a comparative financial analysis? How do you make useful comparison? 22. Give four broad categories of analysis tools. 23. Is the