Ch. 1 (IFSA) Summary

Question 1

Key financial statements that are a primary focus of analysis include the:
- ___
- balance sheet
- cash flow statement
- statement of owners’ equity

Answer 1

income statement

Question 2

Key financial statements that are a primary focus of analysis include the:
- income statement
- ___
- cash flow statement
- statement of owners’ equity

Answer 2

balance sheet

Question 3

Key financial statements that are a primary focus of analysis include the:
- income statement
- balance sheet
- ___
- statement of owners’ equity

Answer 3

cash flow statement

Question 4

Key financial statements that are a primary focus of analysis include the:
- income statement
- balance sheet
- cash flow statement
- ___

Answer 4

statement of owners’ equity

Question 5

Although the income statement and balance sheet provide a measure of a company’s success, ___ are also vital to a company’s long-term success.

Answer 5

cash and cash flow

Question 6

Disclosing the sources and uses of cash in ___ helps creditors, investors, and other statement users evaluate the company’s liquidity, solvency, and financial flexibility.

Answer 6

the cash flow statement

Question 7

Disclosing the sources and uses of cash in the cash flow statement helps creditors, investors, and other statement users evaluate the company’s ___, solvency, and financial flexibility.

Answer 7

liquidity

Question 8

Disclosing the sources and uses of cash in the cash flow statement helps creditors, investors, and other statement users evaluate the company’s liquidity, ___, and financial flexibility.

Answer 8

solvency

Question 9

Disclosing the sources and uses of cash in the cash flow statement helps creditors, investors, and other statement users evaluate the company’s liquidity, solvency, and ___.

Answer 9

financial flexibility

Question 10

___ provides steps that can be followed in any financial statement analysis project, including the following:
- Articulate the purpose and context of the analysis
- Collect input data
- Process data
- Analyze/interpret the processed data
- Develop and communicate conclusions and recommendations
- Follow up

Answer 10

The financial statement analysis framework

Question 11

The financial statement analysis framework provides steps that can be followed in any financial statement analysis project, including the following:
- ___
- Collect input data
- Process data
- Analyze/interpret the processed data
- Develop and communicate conclusions and recommendations
- Follow up

Answer 11

Articulate the purpose and context of the analysis

Question 12

The financial statement analysis framework provides steps that can be followed in any financial statement analysis project, including the following:
- Articulate the purpose and context of the analysis
- ___
- Process data
- Analyze/interpret the processed data
- Develop and communicate conclusions and recommendations
- Follow up

Answer 12

Collect input data

Question 13

The financial statement analysis framework provides steps that can be followed in any financial statement analysis project, including the following:
- Articulate the purpose and context of the analysis
- Collect input data
- ___
- Analyze/interpret the processed data
- Develop and communicate conclusions and recommendations
- Follow up

Answer 13

Process data

Question 14

The financial statement analysis framework provides steps that can be followed in any financial statement analysis project, including the following:
- Articulate the purpose and context of the analysis
- Collect input data
- Process data
- ___
- Develop and communicate conclusions and recommendations
- Follow up

Answer 14

Analyze/interpret the processed data

Question 15

The financial statement analysis framework provides steps that can be followed in any financial statement analysis project, including the following:
- Articulate the purpose and context of the analysis
- Collect input data
- Process data
- Analyze/interpret the processed data
- ___
- Follow up

Answer 15

Develop and communicate conclusions and recommendations

Question 16

The financial statement analysis framework provides steps that can be followed in any financial statement analysis project, including the following:
- Articulate the purpose and context of the analysis
- Collect input data
- Process data
- Analyze/interpret the processed data
- Develop and communicate conclusions and recommendations
- ___

Answer 16

Follow up