Financial statement analysis applies _____ tools to financial statements for decision-making

1. Financial statement analysis applies _____ tools to financial statements for decision-making.

Analytical

2. Financial statement analysis provides information to internal users to improve:

Efficiency and Effectiveness

3. This building block reveals a company's ability to generate future revenues and meet long-term obligations.

Solvency

4. General-purpose financial statements include all of the following except:
   
   -general ledger accounts
   -balance sheet
   -statement of stockholders' equity
   -income statement
   -statement of cash flows
   -notes to the financial statements

General ledger accounts

5. Apple Company compares its first quarter sales revenue for the current year with its previous year's first quarter sales revenue. This is an example of what type of comparison?

Intracompany

6. Comparison of a company's financial condition and performance to a base amount is an example of what type of analysis?

Vertical analysis

7. Horizontal analysis is the review of financial statement data across time and the term horizontal comes from the _____ movement of our eyes as we review comparative financial statements:

left-to-right

8. Compute the dollar change for accounts payable using the following information. Use year 1 as the base year.
   
   Accounts Payable balance on Year 1 is $75,000 and on Year 2 is $65,000.

$(10,000)

9. Compute the percent change for accounts payable using the following information. Use year 1 as the base year.
   
   Accounts Payable balance on Year 1 is $75,000 and on Year 2 is $65,000.

-13.33%

10. A company's sales in year 1 were $300,000, year 2 were $351,000, and year 3 were $400,000. Using year 2 as a base year, the sales percent for year 3 is ___.

113.96%