Corporate Finance - Ivy Software (MBA Prepworks):
Questions With Correct Solutions
The information used to assess the financial position and results of
operations of corporations is communicated through _________________
_____________. Right Ans - financial statements
· _______________ statements are compiled in accordance with _____________
____________ ______________ _______________. Right Ans - 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). Right Ans - Financial Accounting Standards
Board; Securities Exchange Commission
Among the more prevalent accounting principles are: (6-ACCMUR) Right
Ans - accounting period
conservatism
consistency
matching
understandability
reliability
Required statements consists of: (4-BISS) Right Ans - 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. Right
Ans - balance sheet
Companies must also report their results of operations for a period via an
_______________ ______________. Right Ans - income statement
, The _______________ ________________ shows all sources of revenues and
expenses incurred for the period in question. Right Ans - income
statement
Income is reported using _______________ accounting, meaning that revenue is
recognized when earned and expenses are realized when incurred.
Right Ans - accrual
A third required statement, the ______________ _________ ___________ _____________
reports investments by stockholders into the firm and distributions
(_______________) paid to those stockholders. Right Ans - 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. Right Ans - statement of cash flows
Financial statements are analyzed to present information more
_______________ than can be gleaned from the statements themselves.
Right Ans - succinctly
The most frequently employed tool for analyzing financial statements is
______________ analysis. Right Ans - ratio
Financial ratios are subdivided into three types: Right Ans - operating
performance ratios
liquidity ratios
financial strength ratios
________________ ______________ _____________ indicate how well a company is
converting its resources into results - sales, income, or the like. Right
Ans - Operating performance ratios
Categories of operating performance ratios include ___________ ratios
(sales/assets) and __________ ratios (net income/sales). Right Ans -
turnover; return
Questions With Correct Solutions
The information used to assess the financial position and results of
operations of corporations is communicated through _________________
_____________. Right Ans - financial statements
· _______________ statements are compiled in accordance with _____________
____________ ______________ _______________. Right Ans - 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). Right Ans - Financial Accounting Standards
Board; Securities Exchange Commission
Among the more prevalent accounting principles are: (6-ACCMUR) Right
Ans - accounting period
conservatism
consistency
matching
understandability
reliability
Required statements consists of: (4-BISS) Right Ans - 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. Right
Ans - balance sheet
Companies must also report their results of operations for a period via an
_______________ ______________. Right Ans - income statement
, The _______________ ________________ shows all sources of revenues and
expenses incurred for the period in question. Right Ans - income
statement
Income is reported using _______________ accounting, meaning that revenue is
recognized when earned and expenses are realized when incurred.
Right Ans - accrual
A third required statement, the ______________ _________ ___________ _____________
reports investments by stockholders into the firm and distributions
(_______________) paid to those stockholders. Right Ans - 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. Right Ans - statement of cash flows
Financial statements are analyzed to present information more
_______________ than can be gleaned from the statements themselves.
Right Ans - succinctly
The most frequently employed tool for analyzing financial statements is
______________ analysis. Right Ans - ratio
Financial ratios are subdivided into three types: Right Ans - operating
performance ratios
liquidity ratios
financial strength ratios
________________ ______________ _____________ indicate how well a company is
converting its resources into results - sales, income, or the like. Right
Ans - Operating performance ratios
Categories of operating performance ratios include ___________ ratios
(sales/assets) and __________ ratios (net income/sales). Right Ans -
turnover; return
