Ivy Software Financial Accounting, Financial Ratios,
Corporate Finance, and Investment Analysis
Comprehensive Resource To Help You Ace 2026-2027
Includes Frequently Tested Questions With ELABORATED
100% Correct COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!!
Current Update!!
1. What are the two main ways to evaluate financial ratios? - ANSWER
Trends over time and comparison to previous year's actuals.
2. What is the Agency Problem? - ANSWER A conflict of interest between
shareholders and corporate management.
3. Who are stakeholders? - ANSWER Non-stockholders who have an
interest in the success of the firm, including customers, employees,
suppliers, local communities, and governments.
4. What are the main responsibilities of a financial manager? - ANSWER
Capital Budgeting, Capital Structure, Working Capital Management.
5. What are the main parts of corporate finance organizational chart? -
ANSWER Treasury and Accounting.
,6. What are the three areas the Statement of Cash Flows breaks out activities
into? - ANSWER Operating Activity, Investment Activity, Financing
Activity.
7. What is Sensitivity Analysis in financial modeling? - ANSWER A
technique where only one variable is changed to determine its impact on
the forecast.
8. What did Congress do to the U.S. federal corporate income tax rate in 2017?
- ANSWER Lowered it to a flat 21%.
9. How is the average tax rate calculated? - ANSWER Total taxes divided by
total taxable income.
10.What are Pro-Forma financial statements? - ANSWER Projections that
typically project asset items, liability items, and income statement items as
percentages of sales.
11.What are Common Sized financial statements? - ANSWER Financial
statements where line items are shown as percentages of a total.
12.What are the three cases for long-term financial forecasts? - ANSWER
Best (optimistic), Normal (most likely), and Worst (pessimistic).
13.What is the primary goal of financial management? - ANSWER To
maximize the current value per share of the outstanding stock.
,14.How does the finance function maximize the value of the firm? - ANSWER
By minimizing costs.
15.What principles do U.S. financial statements follow? - ANSWER
Generally Accepted Accounting Principles (GAAP).
16.What are the best financial statements? - ANSWER Income statement,
Balance Sheet, and Statement of Cash Flows.
17.What is the liability of general partners and sole proprietors? - ANSWER
Unlimited personal liability based on their ownership interest.
18.What is a Corporation in terms of legal status? - ANSWER Treated like a
legal person and subject to double taxation.
19.What is a Limited Liability Corporation (LLC)? - ANSWER A special type
of corporation used mainly by service providers, taxed like a partnership but
provides limited liability.
20.What is the Sarbanes-Oxley Act? - ANSWER Legislation in response to
corporate greed and abuses, which has costly compliance implications.
, 21.What are the six uses for financial statements? - ANSWER Performance
evaluation, Planning, Evaluation by creditors, Evaluation by investors,
Evaluation of competitors, Acquisition analysis.
22.What are two sources of comparative financial statements? - ANSWER
NAICS (North American Industry Classification System) and RMA (Risk
Management Association).
23.What are the Securities Act of 1933 and Securities Exchange Act of 1934? -
ANSWER Key laws regulating the issuance of securities.
24.What is Enterprise Value? - ANSWER Market Value + Market value of
debt - cash.
25.How is Market Cap calculated? - ANSWER Shares multiplied by share
price.
26.What is Earnings Management? - ANSWER Acceleration and/or deferral
of income from one period to the next.
27.What happens to bond prices when market interest rates go down? -
ANSWER Bond prices go up.
28.What is the Time Value of Money? - ANSWER The idea that a dollar
received today is worth more than a dollar promised in the future.
Corporate Finance, and Investment Analysis
Comprehensive Resource To Help You Ace 2026-2027
Includes Frequently Tested Questions With ELABORATED
100% Correct COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!!
Current Update!!
1. What are the two main ways to evaluate financial ratios? - ANSWER
Trends over time and comparison to previous year's actuals.
2. What is the Agency Problem? - ANSWER A conflict of interest between
shareholders and corporate management.
3. Who are stakeholders? - ANSWER Non-stockholders who have an
interest in the success of the firm, including customers, employees,
suppliers, local communities, and governments.
4. What are the main responsibilities of a financial manager? - ANSWER
Capital Budgeting, Capital Structure, Working Capital Management.
5. What are the main parts of corporate finance organizational chart? -
ANSWER Treasury and Accounting.
,6. What are the three areas the Statement of Cash Flows breaks out activities
into? - ANSWER Operating Activity, Investment Activity, Financing
Activity.
7. What is Sensitivity Analysis in financial modeling? - ANSWER A
technique where only one variable is changed to determine its impact on
the forecast.
8. What did Congress do to the U.S. federal corporate income tax rate in 2017?
- ANSWER Lowered it to a flat 21%.
9. How is the average tax rate calculated? - ANSWER Total taxes divided by
total taxable income.
10.What are Pro-Forma financial statements? - ANSWER Projections that
typically project asset items, liability items, and income statement items as
percentages of sales.
11.What are Common Sized financial statements? - ANSWER Financial
statements where line items are shown as percentages of a total.
12.What are the three cases for long-term financial forecasts? - ANSWER
Best (optimistic), Normal (most likely), and Worst (pessimistic).
13.What is the primary goal of financial management? - ANSWER To
maximize the current value per share of the outstanding stock.
,14.How does the finance function maximize the value of the firm? - ANSWER
By minimizing costs.
15.What principles do U.S. financial statements follow? - ANSWER
Generally Accepted Accounting Principles (GAAP).
16.What are the best financial statements? - ANSWER Income statement,
Balance Sheet, and Statement of Cash Flows.
17.What is the liability of general partners and sole proprietors? - ANSWER
Unlimited personal liability based on their ownership interest.
18.What is a Corporation in terms of legal status? - ANSWER Treated like a
legal person and subject to double taxation.
19.What is a Limited Liability Corporation (LLC)? - ANSWER A special type
of corporation used mainly by service providers, taxed like a partnership but
provides limited liability.
20.What is the Sarbanes-Oxley Act? - ANSWER Legislation in response to
corporate greed and abuses, which has costly compliance implications.
, 21.What are the six uses for financial statements? - ANSWER Performance
evaluation, Planning, Evaluation by creditors, Evaluation by investors,
Evaluation of competitors, Acquisition analysis.
22.What are two sources of comparative financial statements? - ANSWER
NAICS (North American Industry Classification System) and RMA (Risk
Management Association).
23.What are the Securities Act of 1933 and Securities Exchange Act of 1934? -
ANSWER Key laws regulating the issuance of securities.
24.What is Enterprise Value? - ANSWER Market Value + Market value of
debt - cash.
25.How is Market Cap calculated? - ANSWER Shares multiplied by share
price.
26.What is Earnings Management? - ANSWER Acceleration and/or deferral
of income from one period to the next.
27.What happens to bond prices when market interest rates go down? -
ANSWER Bond prices go up.
28.What is the Time Value of Money? - ANSWER The idea that a dollar
received today is worth more than a dollar promised in the future.
