12. A line item on the Statement of Cash Flows shows a loan amount of -$2,000. What does this mean?
- The company is receiving a loan for the amount of $2,000.
- The company is paying off a loan for the amount of $2,000.
Financial Statements Assessment
13. If operating expenses in 2020 (recent year) were $55,000 and in 2019 (older year) they were $36,000, what would the percent change be? Hint: remember the formula: (($recent year - $older year) / $older year) x 100 = 𝚫% (enter your answer as a whole number without punctuation, round if needed)
53
14. Where are Short-term Investments found on the Balance Sheet?
- Current Assets
- Noncurrent Liabilities
- Current Liabilities
- Noncurrent Assets
15. Which section of the Statement of Cash Flow would you look to find cash flows related to inventory?
- Operating Activities
- Net Cash
- Financing Activities
- Investing Activities
16. Long-term Debt Securities issued by the company are called:
- Owner’s Draw
- Common Stock
- Guaranteed Payments
- Bonds Payable
17. The following are aspects of the income statement except:
- Stakeholders Equity
- SG&A
- Net Profit
- Gross Revenue
18. The Net Income on the Cash Flow Statement should match the bottom line on the _________, and the Cash at end of the period should match Cash on the _________.
- Profit and Loss, Statement of Equity
- Sales Report, Balance Sheet
- Balance Sheet, Profit and Loss
- Income Statement, Balance Sheet
Shuffle Q/A 2
19. True or False: Horizontal Analysis Results can be listed as percentages and dollar amounts as long as one or the other is consistently used.
- True
- False
20. A line item on the Statement of Cash Flows shows a loan amount of -$4,000. What does this mean?
- The company is paying off a loan amount of $4,000
- The company is receiving a loan amount of $4,000