Financial Statement Analysis-Questions (1)

1103 words 5 pages
BBA 4201: Financial Statement Analysis & Control 1. Describe some of the analytical uses to which financial statement analysis can be put. 2. What are the sources of financial information? 3. Who are the users of financial statements? 4. What are the objectives of financial statements? 5. What are the limitations of financial statement analysis? 6. Discuss the need for comparative analysis. 7. Identify the tools of financial statement analysis. 8. Explain and apply the horizontal analysis. 9. Identify and compute ratios used in applying a firm’s liquidity, profitability and solvency. 10. Why are the information needs of equity investors among the most
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42. Describe the three categories of adjustments which convert net income to cash flow from operating activities. 43. Describe the two methods of determining cash flow from operating activities. 44. Contrast the functions of income statement with that of cash flow from operating activities. 45. Describe the computation of free cash flows. What is the significance of this measure? 46. List some clues which the statement of cash flows can provide to the financial analyst? 47. Discuss the analytical significance of the statement of cash flows and the considerations which enter into the interpretation of the cash from operations measure. 48. What is meant by the term cash flow? Why is the term subject to confusion and mispresentation? 49. What are the cash equivalents and why are they included with cash on a statement of cash flows? 50. What are the three major sections on a statement of cash flows and what are the general rules that determine the transactions that should be included in each section? 51. How did the direct and indirect methods differ in their approach to computing the net cash provided by operating activities? 52. During the current year, a company declared and paid a $90,000 cash dividend and a 10% stock dividend. How will these two items be treated on the current year’s statement of cash flows? 53. A business executive once stated,” Depreciation is one of the biggest sources of cash”-Do you agree that depreciation is a


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