5 Written questions
5 Matching questions
- Financial ratios
- Statement of cash flows
- Percent-of-sales method
- Debt-to-equity ratio
- a the strength and vigor of the firm's overall financial posture.
- b depict relationships between items on a firm's financial statements, used to discern whether a firm is meeting its financial objectives and how it stacks up against its industry peers.
- c calculated by dividing its long-term debt by its shareholders' equity, if it gets too high, it may have trouble meeting its obligations and securing the level of financing needed to fuel its growth.
- d a method for expressing each expense item as a percentage of sales.
- e summarizes the changes in a firm's cash position for a specified period of time and details why the change occurred.
5 Multiple choice questions
- assets used over a longer time frame, such as real estate, buildings, equipment, and furniture.
- a written report that quantitatively describes a firm's financial health.
- shows the projected flow of cash into and out of the company during a specified period.
- includes all the direct costs associated with producing or delivering a product or service, including the material costs and direct labor.
- include notes or loans that are repayable beyond one year, including liabilities associated with purchasing real estate, buildings, and equipment.
5 True/False questions
Budgets → an estimate of a firm's future income and expenses, based on its past performance, its current circumstances, and its future plans.
Break-even point → a snapshot of the company's assets, liabilities, and owner's equity at a specific point in time.
Historical financial statements → projections for future periods based on forecasts and are typically completed for two to three years in the future.
10-K → itemized forecasts of a company's income, expenses, and capital needs and are also an important tool for financial planning and control.
Pro forma income statement → firm forecasts its future income and expenses.