Fin 461 Exam 1 |36 Questions and Answers
Cash Flow Statement - --Liquidity
-Solvency
-Financial Flexibility
-Shows where investors money goes
-Solvency - -Ability to meet long term obligations
-Balance Sheet - --Assets
-Liabilities
-Equity
-Income Statement - --Revenues
-Expenses
-Income
-Statement of Comprehensive Income - -Includes items that impact owners equity but are
not a result of transactions with shareholders
-Statement of Changes in Equity - -Reports changes in the owners investments in the
business over time (ex. paid-in capital, retained earnings)
-Financial Notes - --Explains information in the major financial statements that are vital to
understanding how they are constructed
-Segment reporting gives details by breaking the statements down into sections of the
company
-Managements Discussion and Analysis - --Publicly held companies
-Talks about a variety of issues
-Past results
-Future outlooks
-Auditors Reports - -Auditors look over financial statements to assure no misstating or
errors have occurred
-Unqualified Audit - -Says that the company has given true and fair financial statements
-Qualified Audits - -Says most matters have been dealt with fairly other than a few.
-Adverse Audit - -Says that financial statements doesn't line up with the GAAP
-Disclaimer of Opinion - -Happens when an auditor is unable to issue an opinion
Possibly due to the scope of limitations
Cash Flow Statement - --Liquidity
-Solvency
-Financial Flexibility
-Shows where investors money goes
-Solvency - -Ability to meet long term obligations
-Balance Sheet - --Assets
-Liabilities
-Equity
-Income Statement - --Revenues
-Expenses
-Income
-Statement of Comprehensive Income - -Includes items that impact owners equity but are
not a result of transactions with shareholders
-Statement of Changes in Equity - -Reports changes in the owners investments in the
business over time (ex. paid-in capital, retained earnings)
-Financial Notes - --Explains information in the major financial statements that are vital to
understanding how they are constructed
-Segment reporting gives details by breaking the statements down into sections of the
company
-Managements Discussion and Analysis - --Publicly held companies
-Talks about a variety of issues
-Past results
-Future outlooks
-Auditors Reports - -Auditors look over financial statements to assure no misstating or
errors have occurred
-Unqualified Audit - -Says that the company has given true and fair financial statements
-Qualified Audits - -Says most matters have been dealt with fairly other than a few.
-Adverse Audit - -Says that financial statements doesn't line up with the GAAP
-Disclaimer of Opinion - -Happens when an auditor is unable to issue an opinion
Possibly due to the scope of limitations
