FIN3403 Chapter 3

Which one of the following standardizes items on the income statement and balance sheet relative to their values as of a chosen point in time?

Common-base year statement

Which one of the following is a source of cash

Decrease in invetory

The formula which breaks down the return on equity into three component parts is referred to as which one of the following?

Du Pont identity

Relationships determined from a firms financial information and used for comparison purposes are known as:

Financial Ratios

A common-size income statement is an accounting statement that expresses all of a firms expenses as a percentage of:

Sales

The U.S. government coding system that classifies a firm by the natures of its business operations is known as the:

Standard Industrial Classification code.

The sources and uses of cash over a stated period of time are reflected on the:

Statement of cash flows

Activities of a firm which require the spending of cash are known as:

Uses of cash

which one of the following is a source of cash

acquisition of debt

which one of the following is a use of cash

decrease in common stock

Which one of the following is a source of cash?

increase in accounts payable