FIN304review-examI

FIN304review-examI - Study Guide for Mid-term Exam I...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Study Guide for Mid-term Exam I (FIN304) Please review both the notes (handouts and those discussed in class) and the textbook. The exam should not be difficult for well-prepared students who keep up the reading, have a good grasp of concepts, and practice on the end-of-the-chapter problems. However, it won't be so for those who skipped the basic learning. The exam will include 26 multiple-choice questions * 4 points = 104 points I. Financial statements and cash flows 1. Balance sheet - total assets as the accumulative result of past investments - total liabilities as the sources of funding to support the past investments - net working capital = CA – CL - order on the balance sheet: liquidity of assets and time to maturity of liabilities - book value versus market value 2. Income statement - accounting realization principle for revenue and matching principle for costs - the recognition of both revenues and costs may not coincide with the actual cash flow timing 3. Taxes: marginal taxes and average taxes - Marginal tax rate are relevant in evaluating new investment projects which will bring in additional income to the company 4. Cash flow - lifeblood of an enterprise and the relevant number in most of financial analyses
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/12/2010 for the course FIN finance 30 taught by Professor Wenyutsay during the Spring '10 term at CSU San Marcos.

Page1 / 3

FIN304review-examI - Study Guide for Mid-term Exam I...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online