Bishop Strachan School

        3A Accounting
        Review Sheet

        Test
        Analyzing Financial Data

        (Reference: text, chapter #13)

        In order to successfully complete the 3A Accounting test on analyzing financial data , the student should be able to perform the following tasks:

      • summarize financial data and effectively illustrate trend analysis in any of the following ways:

        • dollar figures,
        • percentages, and
        • line charts or bar graphs.

      • prepare a:

        • Common-Size Income Statement;
        • Common-Size Balance Sheet;
        • Comparative Income Statement; and a
        • Comparative Balance Sheet.

      • use simple ratios and percentages in order to illustrate specific aspects of a business' financial position, including:

          1. Current Ratio (or Working Capital):


          2. Quick Ratio:


          3. Debt/Equity Percentages:



          4. Rate of Return on Net Sales:


          5. Rate of Return on Owner's Equity:


      • use additional ratios, percentages, and statistics to illustrate specific aspects of a business' financial position, including:

          6. Collection Period:


          7. Inventory Turnover:


          8. Times Interest Earned Ratio:

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