Exam 2: A Further Look at Financial Statements

Net cash provided by operating activities takes into account that a company must invest in capital expenditures just to maintain its current level of operations.

Use the following data to calculate the current ratio.

The current ratio is computed as current liabilities divided by current assets.

All of the following are qualities of useful information except

The going concern assumption assumes that the business

The following information is available for Cooke Corporation for the year 2022: What is the cash and equivalents amount at year-end?

Characteristics associated with relevant accounting information are

Earnings per share is a

If a building is offered for sale at $100,000 and the buyer pays $95,000 cash for it, the buyer would record the building at $100,000.

Which of the following is not considered an asset?

Free cash flow is net cash provided by operating activities less dividends.

Earnings per share measures the net income available on each share of common stock.

In order for accounting information to be relevant, it must

For information to be useful, it must be both relevant and faithfully representative.

Information is _________ if independent measures, using the same methods, obtain similar results.

Cash and supplies are both classified as current assets.

The going concern assumption is that the business will continue in operation long enough to carry out its existing objectives and commitments.

The following information is available for Bradshaw Corporation and Newell Corporation: Based on this information, the earnings per share calculations (rounded to two decimals) suggest

Working capital is calculated by taking

Different companies using the same accounting principles is an application of