Title: Quantitative Analysis
Course: Demo 1

Q: A creditor, such as a bank, would review a company’s cash and other assets that can easily be converted into cash in order to determine its:
- liquidity.
- solvency.
- owner’s equity.
A: liquidity.; solvency.

Q: Which of the following external parties might analyze the company’s financial statements?
- investors
- regulators
- the company’s management team
A: investors; regulators

Q: In conducting financial analysis of the company, external parties often use:
- financial statements
- explanatory notes that accompany the financial statements
- specialized internal reports requested to support the analysis
A: financial statements; explanatory notes that accompany the financial statements

Q: When creditors that are making long-term loans to businesses, they will analyze the ratio of a company’s’ assets to its liabilities, in order to measure the company’s:
- liquidity.
- owner’s equity.
- long-term solvency.
A: long-term solvency.

Q: When a potential investor analyzes a company’s sales in the 4th quarter of 2015 compared to 4th quarter sales in 2014, 2013, and 2012, they are conducting:
- qualitative analysis.
- horizontal analysis.
- vertical analysis.
A: qualitative analysis.; horizontal analysis.

Q: When a regulator analyzes a company’s R&D spending, sales and marketing spending, and general administrative spending as a percentage of total revenue, they are conducting:
- qualitative analysis.
- horizontal analysis.
- vertical analysis.
A: vertical analysis.

Q: When a creditor analyzes a company’s revenue, spending, cash and debt over several years, comparing them to performance in 2008, they are conducting:
- comparative analysis.
- trend analysis.
- historical review.
A: comparative analysis.; trend analysis.