Copyright

Ch 16: Financial Statement Analysis

About This Chapter

In this chapter, use our engaging lessons to learn more about financial statement analysis. Multiple-choice quizzes in each lesson can help you assess your progress.

Financial Statement Analysis - Chapter Summary and Learning Objectives

Financial statements are undeniably important in the accounting world. Managers must know how to analyze these statements. In this chapter, get an overview of the methods used in financial statement analysis. Read through the brief lessons, developed by talented instructors, to better evaluate the analysis of different financial statements. This chapter also includes quizzes aimed at helping you test your knowledge. The topics in this chapter include:

  • The horizontal method for analyzing statements
  • Using the vertical method for balance sheets and income statements
  • The formulas and ratios for liquidity
  • How to use solvency ratios

Lesson Objective
The Horizontal Method of Analyzing Financial Statements Explain the horizontal method of analyzing and how to use it for different statements.
Using the Vertical Method to Analyze Financial Statements Use the vertical method to analyze for balance sheets and income statements.
Using Liquidity Ratios & Formulas in Financial Analysis Learn the formulas involved with liquidity ratios used to analyze financial statements.
Analyzing Financial Statements using Solvency Ratios Explore the use of solvency ratios to analyze financial statements.

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

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Support