Chapter 2 Introduction to Financial Statement Analysis Exam Questions & Answers (Grade A+).docx

Chapter 2: Introduction to Financial
Statement Analysis Exam Questions &
Answers (Grade A+)
Financial Statements (List of 3) -
correct answer ✅Balance Sheet
Income Statement
Cash Flow Statement


GAAP -
correct answer ✅Generally Accepted Accounting Principles


IFRS -
correct answer ✅International Financial Reporting Standards


Balance Sheet (Alt Name) -
correct answer ✅Statement of Financial Position (Alt Name)


Assets (Def'n) -
correct answer ✅Money and other valuables belonging to an
individual or business

, Chapter 2: Introduction to Financial
Statement Analysis Exam Questions &
Answers (Grade A+)
Current Assets (Def'n) -
correct answer ✅Cash and other assets expected to be
exchanged for cash or consumed within a year


Long Term Assets (Def'n) -
correct answer ✅Assets that are expected to be used in business
operations for longer than one year


Current Liabilities (Def'n) -
correct answer ✅Liabilities due within a short time, usually within
a year


Long Term Liabilities (Def'n) -
correct answer ✅Obligations that a company expects to pay after
one year


Stockholders' Equity (Def'n) -
correct answer ✅The owners' claim to assets. BV of Equity


Assets (Eq'n) -
correct answer ✅Liabilities + Stockholders' Equity