1. Which method of financial statement analysis involves looking at various financial indicators perhaps accounting ratios over a number of accounting periods to see if there is an apparent pattern of improvement or deterioration?

1)	Simple comparison

2)	Ratio analysis

3)	Trend analysis

4)	Comparison with benchmarks

2. Operating efficiency ratios provide insight into how efficiently an organisations managers are managing its assets and liabilities. Such ratios include inventory turnover, debtors turnover and operating cash flow margin.

	1) True
	2) False

3. A common and sensible cash control method is encouraging customers to pay by cash rather than electronic funds transfer (EFT).

	1) True
	2) False

4. A liquidity crisis is characterised by a lack of positive cash flows within an organisation, and a situation where an organisation does not have sufficient liquid assets to meet obligations that need to be paid in the short run.

	1) True
	2) False