Ch 6: Analyzing Financial Statements

Study the lessons featured in this chapter to identify various methods for analyzing financial statements. Assess your comprehension of these techniques using the supplemental lesson quizzes and chapter exam.

Analyzing Financial Statements - Chapter Summary and Learning Objectives

Accurately interpreting financial statements and records is a crucial responsibility tasked to accounting professionals. Evaluate some of the various methods used to analyze financial statements in these interactive lessons. As you thoroughly examine each method, you'll be given an opportunity to assess your comprehension through the lesson quizzes and chapter exam. In this chapter, you'll learn about:

• The purpose, categories and issues of financial statement analysis
• Standards used for comparison when analyzing financial statements
• Applying the horizontal and vertical analysis methods
• Assessing rate debt and business credit status

LessonObjective
Financial Statement Analysis: Definition, Purpose, Elements & ExamplesDissect the elements of financial statement analysis and calculate financial ratio.
Standards for Comparison in Financial Statement AnalysisBreak down the four standards in ratio comparison and where to find the data.
Applying Horizontal Analysis MethodsCalculate horizontal analysis and interpret the results using a commonly used financial statement.
Applying Vertical Analysis MethodsAssess the vertical analysis method and measure the results.
Using Financial Analysis to Assess Business Credit StatusIllustrate how financial statement analysis can be used to assess a business's creditworthiness.
Using Financial Analysis to Rate DebtDiagram financial statement components and commonly used ratios to calculate an example scenario.
Issues with Financial Statement AnalysisDebate the issues encountered when analysis financial statement ratios and conclude how you can ensure you're comparing similar ratios.

7 Lessons in Chapter 6: Analyzing Financial Statements
Test your knowledge with a 30-question chapter practice test
Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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