Adobe Reader File Edit View Window Help 0100 001.pdf 75% Open True False (25 pts) Shareholders d nd financial info profitability and k wheel bankers demand information primarily to assess cash flows to repay loan interest and principal 2. If a company reports $175.3 ts bala sheet, it port $175.3 million in cash 3. Assets must always equal liabilities plus equity 4. The income statement reports net income which is defined as the company's profit after all expenses and dividends have been paid 5. A statement of cash ows reports on cash flows for operating, investing and financing activities at a point in time 6. An increase in treasury stock would be reflected in the statement of stockholders' equity 7. A "c audit report ditor has prep g oth necessary financial statements and (b) management has expressed its opinion that they are prepared in conformity with GAAP 8. Assets are reported on the balance sheet at their current market value 9. Assets are listed on the balance sheet in order of liquidity and liabilities are listed order of maturity. 0. Preparing financial statements involves o steps: recording transactions during the period adjusting records to ensure all events are properly recorded. When sharehold capital pital a CO company has earned the shareholders' trust and their investments 2. R statem he bal sheet. 3. Ret ypically recorded as e d when cash is received because that is whe e company can measure the revenue objectively 14. Accrual accounting recognizes revenues only when cash is received and expenses only when cash is paid 15. Ratios provide one way to compare companies in the same industry regardless of their size 16. NOPAT is equivalent to income from operating activities 7. If Company A has a higher net operating prof margin (NOPM) than Company B, then Company A's RNOA will be higher 18. Net operating asset turnover (NOAT) measures a company's profitability 19. A current ratio greater than 1.0 is generally desirable for a company 4) 86% Thu 10:25 PM Yunling Li Q E Fill & Sign Comment Tools Sig Export PDF Adobe ExportPDF Convert PDF files to Word or Excel online Select PDF File: 0100 001.pdf 1 file 3.01 MB Convert To: Microsoft Word docx Recognize Text in English (U.S.) Change Convert Create PDF Edit PDF Send Files Store Files