Financial Statement Analysis Exam 1 with correct answers.

Financial Statement Analysis Exam 1 with |\ |\ |\ |\ |\ |\




correct answers |\




The Balance Sheet heading will specify what? - CORRECT
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ANSWERS ✔✔Point In Time |\ |\ |\




Which of the following is a category or element of the balance
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sheet? - CORRECT ANSWERS ✔✔Liabilities
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Which of the following is an asset account? - CORRECT ANSWERS
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✔✔Prepaid Advertising
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Which of the following is a contra asset? - CORRECT ANSWERS
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✔✔Accumulated Depreciation |\




What is the normal balance for an Asset Account? - CORRECT
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ANSWERS ✔✔Debt |\




What is the normal balance for Liability Accounts? - CORRECT
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ANSWERS ✔✔Credit |\




What is the normal balance for contra asset accounts? -
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CORRECT ANSWERS ✔✔Credit |\ |\

, What are assets? - CORRECT ANSWERS ✔✔Resources that a
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company owns or controls. |\ |\ |\




What is the difference between a company's assets and its equity
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equal to? - CORRECT ANSWERS ✔✔Liabilities
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Where do companies report assets, liabilities, and equity to? -
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CORRECT ANSWERS ✔✔Balance Sheet |\ |\ |\




Where are sales, cost of goods sold, and net income found on? -
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CORRECT ANSWERS ✔✔Income Statement
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Changes in contributed capital during the period are explained on
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what? - CORRECT ANSWERS ✔✔Statement of Shareholder's
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Equity


What reports cash from financing activities? - CORRECT
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ANSWERS ✔✔Statement of Cash Flows |\ |\ |\ |\




What is the 4 step process? - CORRECT ANSWERS ✔✔-
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Understanding the business environment and accounting info. |\ |\ |\ |\ |\ |\ |\


Where does this firm operate?
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-Adjusting an assessing financial info and accounting info. Where
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is the firm currently?
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-Forecasting financial information. Where is the firm going?
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-Using information for valuation. What is the firm worth?
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