Exam 5: Financial Statements Analysis Reading Between the Lines

Peaches Corp.has current assets worth $90,000 and current liabilities worth $75,000.Current assets include inventory of $10,000.Calculate the net working capital of the company.

Which of the following is a difference between personal financial statements and business financial statements?

Since 2002,the FASB and the International Accounting Standards Board (IASB)have been working to merge U.S.GAAP with international financial reporting standards (IFRS).Which of the following terms is used to describe this process?

Which of the following is true of the cost principle?

Which of the following is an accounting choice that violates GAAP?

Which of the following is Altman's conventional Z-score model for publicly traded manufacturing firms?

Operational freedom and reporting freedom are held in check by the principle of materiality.

Amounts shown on financial statements reflect current values.

Give examples and explain techniques of cash flow manipulations which may not constitute GAAP violations.

Which of the following is a difference between internal comparison and external comparison with regard to financial statement analysis?

Which of the following is the correct formula for calculating sustainable growth rate?

Which of the following is a profitability ratio?

Which of the following is a limitation of computer-assisted audit tools?

Which of the following does a discrepancy in cash flow reconciliation indicate?

Which of the following is true of reviewed financial statements?

Which of the following best defines the term earnings management?

Which of the following is a difference between audits and compilations?

Which of the following the correct formula for calculating acid test ratio?

List the common disclosures that are to accompany a personal financial statement.

List and explain the three basic financial statements.