Test Bank
Analysis For Financial Management
By Higgins,
13th Edition
,Table Of Content
Part One
Assessing The Financial Health Of The Firm
1 Interpreting Financial Statements
2 Evaluating Financial Performance
Part Two
Planning Future Financial Performance
3 Financial Forecasting
4 Managing Growth
Part Three
Financing Operations
5 Financial Instruments And Markets
6 The Financing Decision
Part Four
Evaluating Investment Opportunities
7 Discounted Cash Flow Techniques
8 Risk Analysis In Investment Decisions
9 Business Valuation And Corporate Restructuring
,Test Bank For Analysis For Financial Management 13th Edition Robert
Higgins, Jennifer Koski, Todd Mitton
Student Name:
Answers Are Located At The End Of Each Chapter
True/False - Write 'T' If The Statement Is True And 'F' If The Statement Is False.
1) Current Liabilities Are Defined As Liabilities With A Maturity Of Less Than One Year.
⊚ True
⊚ False
2) A Decline In The Net Property, Plant, And Equipment Account Between Year-End 2020
And Year-End 2021 Is A Clear Indication That Fixed Assets Were Sold During 2021.
⊚ True
⊚ False
3) When Reporting Financial Performance For Tax Purposes, U.S. Companies Prefer
To Use Accelerated Depreciation Methods Over The Straight-Line Method.
⊚ True
⊚ False
4) Accounting Rules Require U.S. Companies To Depreciate Research And Development
(R&D) Expenditures Using The Straight-Line Method.
⊚ True
⊚ False
5) You Can Construct A Sources And Uses Statement For 2021 If You Have A
Company’s Year- End Balance Sheets For 2021 And 2022.
⊚ True
⊚ False
6) A Reduction In Long-Term Debt Is A Use Of Cash.
⊚ True
⊚ False
, 7) The Accrual Principle Requires That Revenue Not Be Recognized Until Payment From
A Sale Is Received.
⊚ True
⊚ False
8) An Increase In Cash And Cash Equivalents Should Appear As A Use Of Cash On The
Sources And Uses Statement.
⊚ True
⊚ False
9) A Cash Flow Statement Places Each Source Or Use Of Cash Into One Of
Three Broad Categories: Operating Activities, Investing Activities, Or Financing
Activities.
⊚ True
⊚ False
10) The Cost Of Equity Is Usually Reported On The Income Statement Right Below
Interest Expense.
⊚ True
⊚ False
11) The United States Was One Of The First Countries To Adopt International
Financial Reporting Standards.
⊚ True
⊚ False
Multiple Choice - Choose The One Alternative That Best Completes The Statement Or
Answers The Question.
12) Which Of The Following Statements Concerning A Firm’s Cash Flows And Profits Is False?
Analysis For Financial Management
By Higgins,
13th Edition
,Table Of Content
Part One
Assessing The Financial Health Of The Firm
1 Interpreting Financial Statements
2 Evaluating Financial Performance
Part Two
Planning Future Financial Performance
3 Financial Forecasting
4 Managing Growth
Part Three
Financing Operations
5 Financial Instruments And Markets
6 The Financing Decision
Part Four
Evaluating Investment Opportunities
7 Discounted Cash Flow Techniques
8 Risk Analysis In Investment Decisions
9 Business Valuation And Corporate Restructuring
,Test Bank For Analysis For Financial Management 13th Edition Robert
Higgins, Jennifer Koski, Todd Mitton
Student Name:
Answers Are Located At The End Of Each Chapter
True/False - Write 'T' If The Statement Is True And 'F' If The Statement Is False.
1) Current Liabilities Are Defined As Liabilities With A Maturity Of Less Than One Year.
⊚ True
⊚ False
2) A Decline In The Net Property, Plant, And Equipment Account Between Year-End 2020
And Year-End 2021 Is A Clear Indication That Fixed Assets Were Sold During 2021.
⊚ True
⊚ False
3) When Reporting Financial Performance For Tax Purposes, U.S. Companies Prefer
To Use Accelerated Depreciation Methods Over The Straight-Line Method.
⊚ True
⊚ False
4) Accounting Rules Require U.S. Companies To Depreciate Research And Development
(R&D) Expenditures Using The Straight-Line Method.
⊚ True
⊚ False
5) You Can Construct A Sources And Uses Statement For 2021 If You Have A
Company’s Year- End Balance Sheets For 2021 And 2022.
⊚ True
⊚ False
6) A Reduction In Long-Term Debt Is A Use Of Cash.
⊚ True
⊚ False
, 7) The Accrual Principle Requires That Revenue Not Be Recognized Until Payment From
A Sale Is Received.
⊚ True
⊚ False
8) An Increase In Cash And Cash Equivalents Should Appear As A Use Of Cash On The
Sources And Uses Statement.
⊚ True
⊚ False
9) A Cash Flow Statement Places Each Source Or Use Of Cash Into One Of
Three Broad Categories: Operating Activities, Investing Activities, Or Financing
Activities.
⊚ True
⊚ False
10) The Cost Of Equity Is Usually Reported On The Income Statement Right Below
Interest Expense.
⊚ True
⊚ False
11) The United States Was One Of The First Countries To Adopt International
Financial Reporting Standards.
⊚ True
⊚ False
Multiple Choice - Choose The One Alternative That Best Completes The Statement Or
Answers The Question.
12) Which Of The Following Statements Concerning A Firm’s Cash Flows And Profits Is False?
