Indicate whether each of the following statements about financial statement analysis is true or false.________ a) Ratio analysis may involve studying relationships between an item reported on the balance sheet and another reported on the income statement.________ b) Comparing sales in Year 2 with sales for Year 1 is a form of vertical analysis.________ c) Comparing net income in Year 2 with sales for Year 2 is a form of horizontal analysis.________ d) Liquidity ratios measure a company's ability to generate cash flows in the short term.________ e) Working capital is calculated by using the following formula: current assets ? current liabilities.
What will be an ideal response?
a) T b) F c) F d) T e) T
a) Ratio analysis may involve studying relationships between an item reported on the balance sheet and another reported on the income statement.
b) Comparing sales in Year 2 with sales for Year 1 is a form of horizontal analysis.
c) Comparing net income in Year 2 with sales for Year 2 is a form of vertical analysis.
d) Liquidity ratios measure a company's ability to generate cash flows in the short term.
e) Working capital is calculated by using the following formula: current assets ? current liabilities.
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The expertise or skills acquired by a project team member through experience, education, or association; it is also awareness or familiarity of a situation gained by experience derived from information, which in turn is derived from data
This description best defines A) knowledge. B) awareness. C) expertise. D) conceptualization.
JT purchases 1,000 shares of stock at $29 per share in January 2006. He sells the 1,000 shares in
January 2012 for $32 per share. What is his internal rate of return? A) 6.15% B) 5.61% C) 5.19% D) 1.65%
The ________ needs to make certain that the project team activities stay synchronized and that progress is being made
A) partners B) users C) PMO D) change management team
Which one of the following statements is correct?
A) If an acquisition is made with cash, then the cost of that acquisition is dependent upon the acquisition gains. B) Acquisitions made by exchanging shares of stock are normally taxable transactions. C) Shareholders of the acquired firm must immediately realize capital gains/losses in a cash acquisition. D) Shareholders of the acquired firm are generally indifferent between a cash or a stock transaction. E) Acquisitions based on legitimate business purposes are not taxable transactions regardless of the means of financing used.