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The information used to assess the financial position and results of operations of corporations is
communicated through _________________ _____________. correct answers financial
statements
· _______________ statements are compiled in accordance with _____________ ____________
______________ _______________. correct answers 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
answers Financial Accounting Standards Board; Securities Exchange Commission
Among the more prevalent accounting principles are: (6-ACCMUR) correct answers accounting
period
conservatism
consistency
matching
understandability
reliability
Required statements consists of: (4-BISS) correct answers 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 answers balance sheet
Companies must also report their results of operations for a period via an _______________
______________. correct answers income statement
The _______________ ________________ shows all sources of revenues and expenses incurred
for the period in question. correct answers income statement
Income is reported using _______________ accounting, meaning that revenue is recognized
when earned and expenses are realized when incurred. correct answers accrual
A third required statement, the ______________ _________ ___________ _____________
reports investments by stockholders into the firm and distributions (_______________) paid to
those stockholders. correct answers 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
answers statement of cash flows
Financial statements are analyzed to present information more _______________ than can be
gleaned from the statements themselves. correct answers succinctly
The most frequently employed tool for analyzing financial statements is ______________
analysis. correct answers ratio
Financial ratios are subdivided into three types: correct answers operating performance ratios
liquidity ratios
financial strength ratios
________________ ______________ _____________ indicate how well a company is
converting its resources into results - sales, income, or the like. correct answers Operating
performance ratios
Categories of operating performance ratios include ___________ ratios (sales/assets) and
__________ ratios (net income/sales). correct answers turnover; return
________________ ratios present the short-term financial stability of an enterprise, focusing on
current assets and current liabilities. correct answers Liquidity
______________ ______________ ratios indicate the capitalization of a company (long-term
debt and equity). correct answers Financial strength
A company's financial reports can be compared with industry averages or against its own
________________ _______________. correct answers historical performance
Analysts, managers, and investors both internal to and external to a firm have interests in making
______________ _______________. correct answers financial projections
The medium used to look into an organization's financial future is the _____ ________
_____________ _____________. correct answers pro forma financial statement
Historical company-specific ________ ______________ is used as one means of estimating the
future. correct answers trend analysis
Better projections can generally be derived by first studying the environment in which a firm
competes both for _____________ and _____________ factors. correct answers quantitative;
qualitative
________ ________ is what type of products are sold, how stable is the industry, on what basis
do firms compete, etc. correct answers Industry definition
The information used to assess the financial position and results of operations of corporations is
communicated through _________________ _____________. correct answers financial
statements
· _______________ statements are compiled in accordance with _____________ ____________
______________ _______________. correct answers 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
answers Financial Accounting Standards Board; Securities Exchange Commission
Among the more prevalent accounting principles are: (6-ACCMUR) correct answers accounting
period
conservatism
consistency
matching
understandability
reliability
Required statements consists of: (4-BISS) correct answers 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 answers balance sheet
Companies must also report their results of operations for a period via an _______________
______________. correct answers income statement
The _______________ ________________ shows all sources of revenues and expenses incurred
for the period in question. correct answers income statement
Income is reported using _______________ accounting, meaning that revenue is recognized
when earned and expenses are realized when incurred. correct answers accrual
A third required statement, the ______________ _________ ___________ _____________
reports investments by stockholders into the firm and distributions (_______________) paid to
those stockholders. correct answers 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
answers statement of cash flows
Financial statements are analyzed to present information more _______________ than can be
gleaned from the statements themselves. correct answers succinctly
The most frequently employed tool for analyzing financial statements is ______________
analysis. correct answers ratio
Financial ratios are subdivided into three types: correct answers operating performance ratios
liquidity ratios
financial strength ratios
________________ ______________ _____________ indicate how well a company is
converting its resources into results - sales, income, or the like. correct answers Operating
performance ratios
Categories of operating performance ratios include ___________ ratios (sales/assets) and
__________ ratios (net income/sales). correct answers turnover; return
________________ ratios present the short-term financial stability of an enterprise, focusing on
current assets and current liabilities. correct answers Liquidity
______________ ______________ ratios indicate the capitalization of a company (long-term
debt and equity). correct answers Financial strength
A company's financial reports can be compared with industry averages or against its own
________________ _______________. correct answers historical performance
Analysts, managers, and investors both internal to and external to a firm have interests in making
______________ _______________. correct answers financial projections
The medium used to look into an organization's financial future is the _____ ________
_____________ _____________. correct answers pro forma financial statement
Historical company-specific ________ ______________ is used as one means of estimating the
future. correct answers trend analysis
Better projections can generally be derived by first studying the environment in which a firm
competes both for _____________ and _____________ factors. correct answers quantitative;
qualitative
________ ________ is what type of products are sold, how stable is the industry, on what basis
do firms compete, etc. correct answers Industry definition
