Author: Anonymous

Graphical analysis of the balance sheet can be useful in assessing sources of financing.

A business’s record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is known as a(n):

The direct method of reporting operating cash flows:

The higher a company’s debt ratio, the lower the risk of a company not being able to meet its obligations.

General standards of comparisons, developed from experience, include the 2:1 level for the current ratio and 1:1 level for the acid-test ratio.

The percent change of a comparative financial statement item is computed by subtracting the analysis period amount from the base period amount, dividing the result by the base period amount and multiplying that result by 100.

Financial reporting includes not only general purpose financial statements, but also information from SEC filings, press releases, shareholders’ meetings, forecasts, management letters, auditor’s reports, and Webcasts.

The higher a company’s debt ratio, the lower the risk of a company not being able to meet its obligations.

Decreases in equity that represent costs of providing products or services to customers, used to earn revenues are called:

Dividends always decrease equity.