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5 questions
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  • Q1

    1.It measures the ability of the company to settle its currently maturing obligations.

    solvency

    liquidity

    profitability

    structure 

    30s
    ABM_FABM12- Ig-h-12
  • Q2

    2.An application of the vertical analysis where the accounts of a company is compared to a base account for each year.

    common size SFP

    cash flow 

    statement   of comprehensive income

    statement of financial position

    30s
    ABM_FABM12- Ig-h-12
  • Q3

    It compares the financial position & performance of a company for two periods.

    vertical analysis   

    common size SFP

    financial ratio      

    Horizontal Analysis

    30s
    ABM_FABM12- Ig-h-12
  • Q4

    4. It determines the percentage of profit after adding all income & deducting all expenses.

    Debt to equity ratio 

    net profit margin

            

    gross profit margin

    rate of return on equity          

    30s
    ABM_FABM12- Ig-h-12
  • Q5

    It measures debt in relation to equity

    gross profit margin      

    net profit margin

            

    rate of return on equity  

    Debt to equity ratio                 

    30s
    ABM_FABM12- Ig-h-12

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