Exclusive Test Bank –
Corporate Finance Foundations, 10th
Edition by Ross (FIN 10)
Chapter 02
Financial Statements, Taxes, and Cash Flow
Multiple Choice Questions
1. Which one of the following is the financial statement that shows the accounting
value of a firm's equity as of a particular date?
A. income statement
,B. creditor's statement
C. balance sheet
D. statement of cash flows
E. dividend statement
,2. Net working capital is defined as:
A. total liabilities minus shareholders' equity.
B. current liabilities minus shareholders' equity.
C. fixed assets minus long-term liabilities.
D. total assets minus total liabilities.
E. current assets minus current liabilities.
, 3. The common set of standards and procedures by which audited financial
statements are prepared is known as the:
A. matching principle.
B. cash flow identity.
C. Generally Accepted Accounting Principles.
D. Financial Accounting Reporting Principles.
E. Standard Accounting Value Guidelines.
4. Which one of the following is the financial statement that summarizes a firm's
revenue and expenses over a period of time?
A. income statement
B. balance sheet
C. statement of cash flows
D. tax reconciliation statement
E. market value report
Corporate Finance Foundations, 10th
Edition by Ross (FIN 10)
Chapter 02
Financial Statements, Taxes, and Cash Flow
Multiple Choice Questions
1. Which one of the following is the financial statement that shows the accounting
value of a firm's equity as of a particular date?
A. income statement
,B. creditor's statement
C. balance sheet
D. statement of cash flows
E. dividend statement
,2. Net working capital is defined as:
A. total liabilities minus shareholders' equity.
B. current liabilities minus shareholders' equity.
C. fixed assets minus long-term liabilities.
D. total assets minus total liabilities.
E. current assets minus current liabilities.
, 3. The common set of standards and procedures by which audited financial
statements are prepared is known as the:
A. matching principle.
B. cash flow identity.
C. Generally Accepted Accounting Principles.
D. Financial Accounting Reporting Principles.
E. Standard Accounting Value Guidelines.
4. Which one of the following is the financial statement that summarizes a firm's
revenue and expenses over a period of time?
A. income statement
B. balance sheet
C. statement of cash flows
D. tax reconciliation statement
E. market value report
