FSA FINAL EXAM | Questions with 100% Correct Answers | Updated & Verified

FSA FINAL EXAM | Questions with 100% Correct Answers | Updated & Verified list the 4 main financial statements, if you could only have one statement to analyze, which one would you choose and why? - 1. income statement 2. Balance Sheet 3. Cash Flow 4. Statement of Retained Earnings Cash flow - companies now on cash What is the difference between cash and accrual accounting? include financial statements as examples of each in your answer. - cash is cash. accrual assigns costs to a production of an accounting period whether or not the cash flow actually occurs. ex I/S - accrual, CF- cash current assets - inventories, prepaid expenses, change in accounts receivable income statement - cost of goods sold, interest expense, impairment charges, dividends paid cash flow from operations - change in AR, impairment charges Shareholders' Equity - repurchases of common stock, dividends paid, treasury stock goodwill, accumulated depreciation, purchases of capital equipment, impairment charges - long term assets current liabilities - accounts payable cash flow from investing - purchases of investment securities, proceeds from business disposition, purchases of capital equipment cash flow from financing activities - treasury stock, dividends paid, repurchases of common stock what is meant by book value? is it an accurate measurement? why or why not? - assets- liabilities or net worth. no because assets on the balance sheet are not always carried at fair market value