Module 10

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The main financial statements needed are the _____, the income statement and the cash flow statement.
1. balance sheet
2. cash receipt
3. check book
4. invoice
_________________ are a vital and integral part of a report: do NOT fail to read them.
1. Dictionaries
2. Footnotes
3. Salaries
4. Receipts
Owners' ____________________ is the net worth of the company.
1. liability
2. competition
3. equity
4. asset
_________________ are the financial obligations a company owes to other entities.
1. Liabilities
2. Invoices
3. Assets
4. Expenses
If a company lacks enough cash to pay its bills, it __________________________________.
1. gets the money in the middle of May
2. can be forced into bankruptcy and liquidation
3. can be paid either physically or electronically
4. must exceed its periodic cash outflows
The cash flow statement shows that a company ________________________________.
1. risks manipulation through creative accounting
2. can be forced into liquidation
3. has cash or it does not
4. fails to generate cash
When reading footnotes it is important to _________________________________.
1. include statements correcting errors
2. determine when revenue was earned
3. analyze the company's accounting methods
4. disclose additional information
There are ______________________ for ensuring footnotes are clear and readable.
1. short shrifts to major issues
2. legal and technical jargon
3. things concealed from investors
4. no standards
The prospectus is a ___________________ and so must meet legal transparency standards.
1. detailed document
2. valuable market share
3. legal and technical jargon
4. legal declaration
Because the information in a prospectus is just projections the actual outcomes are _____________.
1. unbelievable
2. suspicious
3. certain
4. uncertain

Module 10

Post test