Introduction to FP&A: Analyzing Fin Statement Investigation

What is the primary financial statement that shows a company’s profitability over a period of time?

• Balance Sheet

• Income Statement

• Cash Flow Statement

• Statement of Retained Earnings

Which financial statement provides information about a company’s assets, liabilities, and equity at a specific point in time?

• Balance Sheet

• Income Statement

• Cash Flow Statement

• Notes to the Financial Statements

A company's revenue can be found on which financial statement?

• Balance Sheet

• Income Statement

• Cash Flow Statement

• None of the above

Where would you find a company’s total cash balance?

• Income Statement

• Balance Sheet

• Cash Flow Statement

• Shareholders’ Equity Statement

What does the operating cash flow section of the cash flow statement represent?

• Cash received from issuing stock

• Cash generated from day-to-day business operations

• Cash used for purchasing equipment or investments

• Cash paid for dividends

If a company has a high current ratio, what does that indicate?

• The company has strong long-term growth potential

• The company is highly leveraged

• The company has strong short-term liquidity

• The company has negative net income

What does a negative net income indicate on an income statement?

• The company is profitable

• The company has more expenses than revenue

• The company has more cash than liabilities

• The company is increasing its total assets

Which financial statement would help an investor determine whether a company is making enough profit to cover its expenses?

• Balance Sheet

• Income Statement

• Cash Flow Statement

• Retained Earnings Statement

A company reports an increase in accounts receivable on its balance sheet. What does this indicate?

• The company has collected more cash from customers

• The company has unpaid bills from suppliers

• The company is owed more money from customers

• The company has reduced its expenses

If a company has a high debt-to-equity ratio, what does that indicate?

• The company relies heavily on borrowed funds

• The company has high revenue growth

• The company has more cash than liabilities

• The company is not profitable