Finance Applications and Theory 5th Edition Cornett Solutions

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ett


Finance,g5eg(Cornett)
Chapterg2 ReviewinggFinancialgStatements

1) Whichgfinancialgstatementgreportsgagfirm'sgassets,gliabilities,gandgequitygatgagparticulargpointg
ingtime?
A) balancegsheet
B) incomegstatement
C) statementgofgretainedgearnings
D) statementgofgcashgflows

Answer:g AgDifficulty
:g1gEasygTopic:g Bala
ncegsheetgBloom's:g g
Understand
AACSB:g ReflectivegThinkinggAccessi
bility:g KeyboardgNavigation
LearninggGoal:g 02-
01gRecallgthegmajorgfinancialgstatementsgthatgfirmsgmustgpreparegandgprovide.

2) Whichgfinancialgstatementgshowsgthegtotalgrevenuesgthatgagfirmgearnsgandgthegtotalgexpensesgt
hegfirmgincursgtoggenerategthosegrevenuesgovergagspecificgperiodgofgtime–generallygonegyear?
A) balancegsheet
B) incomegstatement
C) statementgofgretainedgearnings
D) statementgofgcashgflows

Answer:g BgDifficult
y:g1gEasy
Topic:g IncomegstatementgBlo
om's:g UnderstandgAACSB:g
ReflectivegThinking
Accessibility:g g KeyboardgNavigation
LearninggGoal:g 02-
01gRecallgthegmajorgfinancialgstatementsgthatgfirmsgmustgpreparegandgprovide.




1
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HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcG
raw-HillgEducation.
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ett


3) Whichgfinancialgstatementgreportsgthegamountsgofgcashgthatgthegfirmggeneratedgandgdistribut
edgduringgagparticulargtimegperiod?
A) balancegsheet
B) incomegstatement
C) statementgofgretainedgearnings
D) statementgofgcashgflows

Answer:g DgDifficult
y:g1gEasy
Topic:g StatementgofgcashgflowsgBloo
m's:g Understand
AACSB:g ReflectivegThinkinggAccessi
bility:g KeyboardgNavigation
LearninggGoal:g 02-
01gRecallgthegmajorgfinancialgstatementsgthatgfirmsgmustgpreparegandgprovide.

4) Whichgfinancialgstatementgreconcilesgnetgincomegearnedgduringgaggivengperiodgandganygca
shgdividendsgpaidgwithingthatgperiodgusinggthegchangegingretainedgearningsgbetweengthegbegin
ninggandgendgofgthegperiod?
A) balancegsheet
B) incomegstatement
C) statementgofgretainedgearnings
D) statementgofgcashgflows

Answer:g CgDifficult
y:g1gEasy
Topic:g Statementgofgretainedgearningsg
Bloom's:g Understand
AACSB:g ReflectivegThinkinggAccessi
bility:g KeyboardgNavigation
LearninggGoal:g 02-
01gRecallgthegmajorgfinancialgstatementsgthatgfirmsgmustgpreparegandgprovide.




2
Copyrightg2020g©gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcG
raw-HillgEducation.
mynursytest.store

,DOWNLOADgTHEgTestgBankgforgFinancegApplicationsgandgTheoryg5thgEditiongCorn
ett


5) Ongwhichgofgthegfourgmajorgfinancialgstatementsgwouldgyougfindgthegcommongstockgandgpaid-
ingsurplus?
A) balancegsheet
B) incomegstatement
C) statementgofgcashgflows
D) statementgofgretainedgearnings

Answer:g AgDifficulty
:g1gEasygTopic:g Bala
ncegsheetgBloom's:g g
Understand
AACSB:g ReflectivegThinkinggAccessi
bility:g KeyboardgNavigation
LearninggGoal:g 02-
01gRecallgthegmajorgfinancialgstatementsgthatgfirmsgmustgpreparegandgprovide.

6) Ongwhichgofgthegfourgmajorgfinancialgstatementsgwouldgyougfindgthegincreaseginginventory?
A) balancegsheet
B) incomegstatement
C) statementgofgcashgflows
D) statementgofgretainedgearnings

Answer:g CgDifficult
y:g1gEasy
Topic:g StatementgofgcashgflowsgBloo
m's:g Understand
AACSB:g ReflectivegThinkinggAccessi
bility:g KeyboardgNavigation
LearninggGoal:g 02-
01gRecallgthegmajorgfinancialgstatementsgthatgfirmsgmustgpreparegandgprovide.

7) Ongwhichgofgthegfourgmajorgfinancialgstatementsgwouldgyougfindgnetgplantgandgequipment?
A) balancegsheet
B) incomegstatement
C) statementgofgcashgflows
D) statementgofgretainedgearnings

Answer:g AgDifficulty
:g1gEasygTopic:g Bala
ncegsheetgBloom's:g g
Understand
AACSB:g ReflectivegThinkinggAccessi
bility:g KeyboardgNavigation
LearninggGoal:g 02-
01gRecallgthegmajorgfinancialgstatementsgthatgfirmsgmustgpreparegandgprovide.


3
Copyrightg2020g©gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcG
raw-HillgEducation.
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ett


8) Financialgstatementsgofgpubliclygtradedgfirmsgcangbegfoundgingagnumbergofgplaces.gWhichgofgt
hegfollowinggisgNOTgangoptiongforgfindinggpubliclygtradedgfirms'gfinancialgstatements?
A) Facebook
B) agfirm'sgwebsite
C) SecuritiesgandgExchangegCommission'sg(SEC)gwebsite
D) websitesgsuchgasgfinance.yahoo.com

Answer:g AgDifficult
y:g1gEasy
Topic:g FinancialgstatementsgB
loom's:g Rememberg AACSB:
g ReflectivegThinking
Accessibility:g g KeyboardgNavigation
LearninggGoal:g 02-
01gRecallgthegmajorgfinancialgstatementsgthatgfirmsgmustgpreparegandgprovide.

9) WhichgofgthegfollowinggchangesgaregtruegofgthegTaxgCutgandgJobsgActg(TCJA)gofg2017?
A) Businessesgaregallowedgtogimmediatelygdeductg100%gofgthegcostgofgeligiblegpropertygingt
hegyeargitgisgplacedgintogservicegthroughg2022.
B) Allowablegbonusgdepreciationsgwillgphasegdowngovergfourgyears.
C) BothgAgandgBgaregtrue.
D) Nonegofgthegabovegaregtrue.

Answer:g CgDifficult
y:g1gEasy
Topic:g FinancialgstatementsgB
loom's:g Rememberg AACSB:
g ReflectivegThinking
Accessibility:g g KeyboardgNavigation
LearninggGoal:g 02-
01gRecallgthegmajorgfinancialgstatementsgthatgfirmsgmustgpreparegandgprovide.




4
Copyrightg2020g©gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcG
raw-HillgEducation.
mynursytest.store