5 Written questions
5 Matching questions
- Income statement
- Break-even point
- Financing activities
- a reflects the results of the operations of a firm over a specified period of time.
- b the strength and vigor of the firm's overall financial posture.
- c point where total revenue received equals total costs associated with the output or sale of the product.
- d include cash raised during the period by borrowing money or selling stock and/or cash used during the period by paying dividends, buying back outstanding stock, or buying back outstanding bonds.
- e a report similar to the annual report except that it contains more detailed information about the company's business.
5 Multiple choice questions
- 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.
- the equity invested in the business by the owners plus the accumulated earnings retained by the business after paying dividends.
- 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.
- consist of total sales minus allowances for returned goods and discounts.
- a written report that quantitatively describes a firm's financial health.
5 True/False questions
Long-term liabilities → include obligations that are payable within a year, including accounts payable, accrued expenses, and the current portion of long-term debt.
Budgets → a report similar to the annual report except that it contains more detailed information about the company's business.
Forecasts → an estimate of a firm's future income and expenses, based on its past performance, its current circumstances, and its future plans.
Accounts receivable → money owed to it by its customers.
Current assets → include cash plus items that are readily convertible to cash, such as accounts receivable, marketable securities, and inventories.