Corporate Finance - Ivy Software UPDATED
ACTUAL Questions and CORRECT
Answers
The information used to assess the financial position and results of operations of corporations is
communicated through _________________ _____________. - CORRECT ANSWER -
financial statements
· _______________ statements are compiled in accordance with _____________ ____________
______________ _______________. - CORRECT ANSWER - Financial statements;
generally accepted accounting principles
GAAP is a collection of rules and procedures which are overseen by authorities such as the
_________________ __________________ ____________________ __________________
(FASB) and the _______________ _________________ _________________ (SEC). -
CORRECT ANSWER - Financial Accounting Standards Board; Securities Exchange
Commission
Among the more prevalent accounting principles are: (6-ACCMUR) - CORRECT
ANSWER - accounting period
conservatism
consistency
matching
understandability
reliability
Required statements consists of: (4-BISS) - CORRECT ANSWER - balance sheet
income statement
statement of owner's equity
statement of cash flows
, Public companies are required to periodically issue a _______________ ______________, or
statement of financial position, describing at a point in time the assets, liabilities, and owners'
equity of the enterprise. - CORRECT ANSWER - balance sheet
Companies must also report their results of operations for a period via an _______________
______________. - CORRECT ANSWER - income statement
The _______________ ________________ shows all sources of revenues and expenses incurred
for the period in question. - CORRECT ANSWER - income statement
Income is reported using _______________ accounting, meaning that revenue is recognized
when earned and expenses are realized when incurred. - CORRECT ANSWER - accrual
A third required statement, the ______________ _________ ___________ _____________
reports investments by stockholders into the firm and distributions (_______________) paid to
those stockholders. - CORRECT ANSWER - statement of owner's equity; dividends
A ______________ _____ ____________ __________ reveals a company's sources and uses of
cash and generally is used to isolate the changes in balance sheets from period to period. -
CORRECT ANSWER - statement of cash flows
Financial statements are analyzed to present information more _______________ than can be
gleaned from the statements themselves. - CORRECT ANSWER - succinctly
The most frequently employed tool for analyzing financial statements is ______________
analysis. - CORRECT ANSWER - ratio
Financial ratios are subdivided into three types: - CORRECT ANSWER - operating
performance ratios
liquidity ratios
financial strength ratios
ACTUAL Questions and CORRECT
Answers
The information used to assess the financial position and results of operations of corporations is
communicated through _________________ _____________. - CORRECT ANSWER -
financial statements
· _______________ statements are compiled in accordance with _____________ ____________
______________ _______________. - CORRECT ANSWER - Financial statements;
generally accepted accounting principles
GAAP is a collection of rules and procedures which are overseen by authorities such as the
_________________ __________________ ____________________ __________________
(FASB) and the _______________ _________________ _________________ (SEC). -
CORRECT ANSWER - Financial Accounting Standards Board; Securities Exchange
Commission
Among the more prevalent accounting principles are: (6-ACCMUR) - CORRECT
ANSWER - accounting period
conservatism
consistency
matching
understandability
reliability
Required statements consists of: (4-BISS) - CORRECT ANSWER - balance sheet
income statement
statement of owner's equity
statement of cash flows
, Public companies are required to periodically issue a _______________ ______________, or
statement of financial position, describing at a point in time the assets, liabilities, and owners'
equity of the enterprise. - CORRECT ANSWER - balance sheet
Companies must also report their results of operations for a period via an _______________
______________. - CORRECT ANSWER - income statement
The _______________ ________________ shows all sources of revenues and expenses incurred
for the period in question. - CORRECT ANSWER - income statement
Income is reported using _______________ accounting, meaning that revenue is recognized
when earned and expenses are realized when incurred. - CORRECT ANSWER - accrual
A third required statement, the ______________ _________ ___________ _____________
reports investments by stockholders into the firm and distributions (_______________) paid to
those stockholders. - CORRECT ANSWER - statement of owner's equity; dividends
A ______________ _____ ____________ __________ reveals a company's sources and uses of
cash and generally is used to isolate the changes in balance sheets from period to period. -
CORRECT ANSWER - statement of cash flows
Financial statements are analyzed to present information more _______________ than can be
gleaned from the statements themselves. - CORRECT ANSWER - succinctly
The most frequently employed tool for analyzing financial statements is ______________
analysis. - CORRECT ANSWER - ratio
Financial ratios are subdivided into three types: - CORRECT ANSWER - operating
performance ratios
liquidity ratios
financial strength ratios
