1.The 'top down' approach of fundamental analysis looks at the following components (in the correct order):

a.corporate data, economic data, retained earnings

b.retained earnings, corporate data, economic data

c.economic data, industry data, corporate data

d.industry data, economic data, corporate data

2.Assets are the Balance Sheet are either current assets or long-term assets:

a.true

b.false

3.The liquid investment account held by a company would be categorized as _______________ on the Balance Sheet:

a.cash

b.a current asset

c.retained earnings

d.a total asset

4.Share capital is:

a.the difference between assets and liabilities

b.profits that have been earned over the years and not paid as dividends

c.a long-term liability

d.money invested by shareholders

5.In regard to auditing, all is true except:

a.corporate law requires companies to appoint an independent auditor who reports annually to the Board of Directors

b.the audit must adhere to GAAP

c.the auditor will give his or her opinion on the financial status of the company

d.information that cannot be shown in the financial statements can be included in a note to the financial statements