Financial Management: Core Concepts, Third Edition

Prepping for Exams

1. The purpose of studying financial statements is           .

   1. to mechanically build portfolio analysis

   2. to understand those portions of the statements that have relevance for financial decision making

   3. to primarily investigate all portions of the statements that have relevance for dividend policy

   4. to mechanically learn how to read and understand notes

2. Understanding the sources and uses of cash in the recent past will enable a manager to            the cash flow for a potential project of the firm.

   1. determine with perfect precision

   2. forecast with perfect precision

   3. predict more accurately

   4. know today

3. It is important to remember that the fundamental            of accounting is the debit and credit recording activity in ...