Robert Dennis invested $20,000 cash in the capital stock of the newly formed
Purchased equipment on account for $15,000.
Received $30,000 from customers for services rendered.
Received a bill for construction supplies used i
1. Which of the following is not part of the framework for evaluating investment rewards
a. Agency theory.
b. Portfolio theory.
c. Capital asset pricing model.
d. Efficient market hypothesis.
2. The primary governmental regulator of financial st
Class 1 Handout
Chapters 1 and 2
1. The background of financial statement analysis
2. PEST (see also PEST, SLEPT, STEP & PESTLE) analysis is a common technique
for analyzing the general external environment of an organization in terms of
the political, ec
The Balance Sheet
Assets are economic resources that provide-a future benefit for a business. Most firms use
the following asset accounts:
Cash. Cash means money and any medium of exchange including bank account
balances, paper cur
Balance sheet leverage ratios-405 - Ratios of a firms use of financial leverage or debt capital to either the firms total capital or
equity. Since the needed info for computing these ratios is found in the balance sheet we refer to them as balance sheet l