5 Written questions
5 Matching questions
- Income statement
- Percent-of-sales method
- Long-term liabilities
- a a method for expressing each expense item as a percentage of sales.
- b an estimate of a firm's future income and expenses, based on its past performance, its current circumstances, and its future plans.
- c a company's ability to meet its short-term financial obligations.
- d reflects the results of the operations of a firm over a specified period of time.
- e include notes or loans that are repayable beyond one year, including liabilities associated with purchasing real estate, buildings, and equipment.
5 Multiple choice questions
- the equity invested in the business by the owners plus the accumulated earnings retained by the business after paying dividends.
- represents the amount of liquid assets the firm has available.
- provides a firm a sense of how its activities will affect its ability to meet its short-term liabilities and how its finances will evolve over time.
- a report similar to the annual report except that it contains more detailed information about the company's business.
- money owed to it by its customers.
5 True/False questions
Pro forma statement of cash flows → shows the projected flow of cash into and out of the company during a specified period.
Historical financial statements → reflect past performance and are usually prepared on a quarterly and annual basis.
Operating activities → include net income (or loss), depreciation, and changes in current assets and current liabilities other than cash and short-term debt.
Other assets → assets used over a longer time frame, such as real estate, buildings, equipment, and furniture.
Investing activities → include the purchase, sale, or investment in fixed assets, such as real estate, equipment, and buildings.