The Three Most Common Tools of Financial Analysis Are

question 116

Multiple Choice

The three most common tools of financial analysis are:

• A)Financial reporting,ratio analysis,vertical analysis.
• B)Ratio analysis,horizontal analysis,financial reporting.
• C)Horizontal analysis,vertical analysis,ratio analysis.
• D)Trend analysis,financial reporting,ratio analysis.
• E)Vertical analysis,political analysis,horizontal analysis.

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Definitions:

Book Value

The company's net asset value as shown on the balance sheet, determined by subtracting intangible assets and liabilities from total assets.

Net Loss

The result when a company's total expenses exceed its total revenues during a specific period, indicating a negative profit.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, without having full control over it, typically implicated by ownership of 20% to 50% of voting shares.

Book Value

The net value of a company's assets as recorded on the balance sheet, calculated by assets minus liabilities, often used to assess if a company's stock is under or overvalued.