CFIN ///
Chapter
/ ////
2 Exam Questions With Correct Answers
//// //// //// //// ////
Financial ////Statements/Reports ////are ////used ////to: ////- ////verified ////answer(s)-
✔✔used ///
/to ///
/disclose ///
/information ///
/about ///
/the ///
/firm ///
/to ///
/investors, ///
/creditors, ///
/governments, ///
/and ///
/other ///
/interested ///
/parties; ///
/information ///
/about ///
/the ///
/firm ///
/is ///
/used ///
/to ///
/determine ///
/what ///
/has ///
/been ///
/accomplished ///
/in ////the ////past ////and ////forecast ////what ////is ////likely ////to ////be ////accomplished ////in ////the ////future
,Annual ////Report ////- ////verified ////answer(s)-
✔✔a ///
/general ///
/discussion ///
/about ///
/the ///
/firm's ///
/activities ///
/during ///
/the ///
/past ///
/year ///
/as ///
/well ///
/as ////developments ////that ////are ////expected ////to ////be ////implemented ////in ////the ////near ////future
the ///
/financial ///
/statements ///
/of ///
/the ///
/firm ////for ////the ////most ////recent ////years ////(the ////year ////just ////ended ////and ////up ////to ////four ////or ////five
////previous ////years)
Balance ////Sheet ////- ////verified ////answer(s)-
✔✔records ///
/the ///
/financial ///
/position ///
/of ///
/the ///
/firm ///
/at ////
a ///
/particular ///
, /point ///
/in ///
/time ///
/by ///
/showing ///
/the ////assets ////(investments) ////and ////the ////liabilities ////and ////equity ////(financing) ////of ////the ////firm
Balance ////sheet ////components ////- ////verified ////answer(s)-✔✔Cash ////versus ////other ////assets
Liabilities ////versus ////stockholders' ////equity
Preferred ////versus ////common ////stock
Common ////equity ////account
cash ////(Balance ////Sheet) ////- ////verified ////answer(s)-
✔✔on ////the ////assets ////side ////of ////the ////balance ////sheet, ////only ////____ ////represents
actual ///
/funds ///
/that ///
/can ///
/be ///
/invested; ///
/the ///
/other ///
/assets ///
/represent ///
/investments ///
/made ///
/in ///
/the ///
/past ///
/that ///
/are ///
/expected ///
/generate ////(or ////help ////generate) ////funds ////in ////the ////future ////(some ////sooner ////than ////others
— ///
Chapter
/ ////
2 Exam Questions With Correct Answers
//// //// //// //// ////
Financial ////Statements/Reports ////are ////used ////to: ////- ////verified ////answer(s)-
✔✔used ///
/to ///
/disclose ///
/information ///
/about ///
/the ///
/firm ///
/to ///
/investors, ///
/creditors, ///
/governments, ///
/and ///
/other ///
/interested ///
/parties; ///
/information ///
/about ///
/the ///
/firm ///
/is ///
/used ///
/to ///
/determine ///
/what ///
/has ///
/been ///
/accomplished ///
/in ////the ////past ////and ////forecast ////what ////is ////likely ////to ////be ////accomplished ////in ////the ////future
,Annual ////Report ////- ////verified ////answer(s)-
✔✔a ///
/general ///
/discussion ///
/about ///
/the ///
/firm's ///
/activities ///
/during ///
/the ///
/past ///
/year ///
/as ///
/well ///
/as ////developments ////that ////are ////expected ////to ////be ////implemented ////in ////the ////near ////future
the ///
/financial ///
/statements ///
/of ///
/the ///
/firm ////for ////the ////most ////recent ////years ////(the ////year ////just ////ended ////and ////up ////to ////four ////or ////five
////previous ////years)
Balance ////Sheet ////- ////verified ////answer(s)-
✔✔records ///
/the ///
/financial ///
/position ///
/of ///
/the ///
/firm ///
/at ////
a ///
/particular ///
, /point ///
/in ///
/time ///
/by ///
/showing ///
/the ////assets ////(investments) ////and ////the ////liabilities ////and ////equity ////(financing) ////of ////the ////firm
Balance ////sheet ////components ////- ////verified ////answer(s)-✔✔Cash ////versus ////other ////assets
Liabilities ////versus ////stockholders' ////equity
Preferred ////versus ////common ////stock
Common ////equity ////account
cash ////(Balance ////Sheet) ////- ////verified ////answer(s)-
✔✔on ////the ////assets ////side ////of ////the ////balance ////sheet, ////only ////____ ////represents
actual ///
/funds ///
/that ///
/can ///
/be ///
/invested; ///
/the ///
/other ///
/assets ///
/represent ///
/investments ///
/made ///
/in ///
/the ///
/past ///
/that ///
/are ///
/expected ///
/generate ////(or ////help ////generate) ////funds ////in ////the ////future ////(some ////sooner ////than ////others
— ///
