The Cash Flow Statement
In regard to the Cash Flow Statement, assume we want to break down Yahoo! Finance’s cost of revenue into its two major components, cost of goods sold (COGS) and depreciation. To do so, we would need to look at __________ for the depreciation amount.
Question options:
the Statement of Cash Flow
both the Income Statement and the Statement of Cash Flow
both the Balance Sheet and the Statement of Cash Flow
the Income Statement
Question 2
5 / 5 points
Which of the following statements is false?
Question options:
Financial data on the Internet or via company annual reports provide a wealth of knowledge about the operations of the firm.
Knowing the relationship of the primary financial statements and how to utilize the data in each are important tools for all financial managers.
Although the annual report of a company is printed and mailed to owners and the SEC, much of the financial statement information is available at various financial websites.
EDGAR stands for Electronic Data Gathering Analysis and Retribution.
Question 3
5 / 5 points
Notes to the financial statements help explain many of the details necessary to gain a more complete picture of the firm’s performance. Some of the items often disclosed in the financial notes include which of the following?
Question options:
How a specific item was computed
Additional information on a company’s financial condition
Methods used to prepare the financial statements
All of the above items are often included.
Question 4
5 / 5 points
The purpose of studying financial statements is:
Question options:
to mechanically build portfolio analysis.
to understand those portions of the statements that have relevance for financial decision making.
to primarily investigate all portions of the statements that have relevance for dividend policy.
to mechanically learn how to read and understand footnotes.
Question 5
5 / 5 points
The annual report of a company is:
Question options:
printed and mailed to owners and the SEC.
not available online.
not mailed to owners but only to the SEC.
always available online in more detail.
Question 6
5 / 5 points
Which of the following statements is true?
Question options:
The finance manager uses the framework of the income statement to find <br /> the operating income of the company (an accounting measure), which is <br /> also the true cash flow from operations.