Practice - Tools of Financial Statement Analysis
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Practice Questions
Test your understanding with targeted questions
Define comparative financial statements.
💡 Hint: Think about what 'comparative' means in finance.
What does a common size statement express for its items?
💡 Hint: Consider how percentages help in comparisons.
3 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What is the primary use of comparative financial statements?
💡 Hint: Consider how the name 'comparative' relates to performance.
True or False: Common size statements show net profit as a percentage of sales.
💡 Hint: Think about how common size statements present data.
2 more questions available
Challenge Problems
Push your limits with advanced challenges
Given the following financial data, prepare a common-sized income statement and highlight the cost of goods sold percentage.
Revenue from Sales: ₹1,00,000; Cost of Goods Sold: ₹60,000; Operating Expenses: ₹25,000.
💡 Hint: Remember to divide by total revenue.
Analyze the following trend data over three years: Year 1 Revenue: ₹500,000, Year 2 Revenue: ₹600,000, Year 3 Revenue: ₹700,000. Calculate the trend percentages for each year with Year 1 as a base.
💡 Hint: Use Year 1 as your denominator for percentages.
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