Understanding Corporate Finance exams with correct answers 100%

Understanding Corporate Finance exams with correct answers 100% Financial Statements - Correct Answer information used to assess the financial position and results of operations of corporations GAAP- a collection of rules and procedures which are overseen by authorities like the FASB and SEC - Correct Answer Generally Accepted Accounting Principles FASB - Correct Answer Financial Accounting Standards Board; explicit authority from SEC to monitor accounting standards SEC - Correct Answer Securities and Exchange Commission accounting period - Correct Answer goal of GAAP - financial reports should be prepared periodically an over periods of equal length; must be at least annually; period determined by company conservatism - Correct Answer goal of GAAP - if certain situations lead to different likely profit figures, the firm should use the lowest measurement; firms must anticipate all expenses and not report revenues until realized. Deliberate understatement is forbidden. consistency - Correct Answer goal of GAAP - firms should strive to use consistent accounting methods so that their statements can be compared over time matching - Correct Answer goal of GAAP - in financial statements, companies should include all expenses incurred to realize the revenues that they report understandability - Correct Answer goal of GAAP - information in reports should be written at a level that a reader with reasonable comprehension of business principles can understand reliability - Correct Answer goal of GAAP - information that is provided must be complete and verifiable Required Statements - Correct Answer balance sheet, income sheet, statement of owner's equity, statement of cash flows