1. Introduction to financial statements Aa Aa
Match the terms relating to a firm’s financial statements on the left with the descriptions of the terms on the right.
Read each description carefully and type the letter of the description in the Answer colum
4. Statement of cash flows Aa Aa
Under the indirect method, an increase in an asset account (excluding the cash and cash equivalent account) reflects
(or results in) a cash outflowV , and a decrease in a liability or equity account represents and gives ri
3. Income statement M
The income statement, also known as the profit and loss (PSiL) statement, provides a snapshot of the financial performance of a company during a
speCified period of time. It reports a firm's gross income, expenses, net Income, and th
6. Stockholders' equity Aa Aa
Which of the following best describes shareholders' equity?
0 Equity is the initial claim on value of the assets before the firm pays off its liabilities.
‘/ O Equity is the difference between the company's assets and liabili
8. Liquidity ratios Aa Aa
A liquid asset can be converted to cash quickly without significantly impacting the asset’s value. Which of the following assets classes is
generally considered to be the most liquid?
J Q Cash
0 Accounts receivable
10. Debt management ratios Aa Aa
Companies use different sources for financing their assets—internal resources as well as external resources.
Aunt Dottie’s Linen Inc. reported no long-term debt in its most recent balance sheet. A company with no debt on i
Irregular structures have significant physical discontinuities in configuration or in their lateral-forceresisting systems. Irregular features include, but are not limited to,
Vertical Configuration Problems
A soft story is one that shows a significant
decrease in lateral stiffness or strength from
the immediately below. The term is
sometimes restricted to a decrease in
stiffness, and weak story used t
The Nature of Earthquake Hazard
Ground Shaking: The shaking resulting from
an earthquake is not life threatening in itself;
it is the consequential collapse of structures
that is the main cause of death, injury, and
9. Asset management ratios A3
A fundamental concern of asset management ratios is whether the firm is carrying too much or too little of a
If the firm's days sales outstanding is longer than the industry's average, possible explanations
7. Net cash flow Aa Aa
How much cash does the firm actually have?
You are the CFO of ABC Corp. You are looking to hire a financial analyst, and you’ve given an assignment to two
short-listed candidates. You've given the following information to the job ap