FINC-Finical Statement Analysis Exam 1
NOPAT is equivalent to income from operating activities. Select one: True False
False
Highly leveraged firms have higher RNOA than firms with lower leverage. Select one: True False
False
Net operating asset turnover (NOAT) measures a company's profitability. Select one: True False
False
Publicly traded companies are required to provide quarterly financial reports directly to the public. Select one: True False
False
Accounts receivables (net) reported in the current asset section of a company's balance sheet represents the total amount owed by customers within the next year. Select one: True False
False
All companies must file with the SEC a detailed annual report and discussion of their business activities in their Form 10-K. Select one: True False
False
Publicly traded companies must provide to the Securities Exchange Commission annual audited financial statements (10K reports) and quarterly audited financial statements (10Q reports). Select one: True False
False
ROE can be disaggregated into operating and nonoperating returns. Nonoperating return will be positive as long as Spread is positive. Select one: True False
False
Revenue is typically recorded as earned when cash is received because that is when the company can measure the revenue objectively. Select one: True False
False
The financial statement effects for uncollectible accounts occur when the company writes off the account because that is when all the uncertainty is resolved. Select one: True False
False
The income statement reports net income which is defined as the company's profit after all expenses and dividends have been paid. Select one: True False
False
The statement of cash flows has three main sections: cash flows from operating activities, cash flows from investing activities, and cash flows from capital activities. Select one: True False
False
There is a certain order in which a company prepares its financial statements. First, a company prepares its balance sheet. Select one: True False
False
The journal entry for recording sales revenue that has been earned is to debit accounts receivable if cash will be received later, or credit unearned revenue if cash was received in advance. Select one: True False
True
Assets are reported on the balance sheet at their current market value. Select one: True False
False
Bed Bath and Beyond has a return policy which states that the customer "may return a purchase for a refund, merchandise credit, or exchange to any of our stores nationwide or to our returns processing center". The company can report revenue on the full amount as soon as the merchandise is sold. Select one: True False
False
Retained earnings articulate across time which means that last period's retained earnings plus current period net income (or loss) is equal to the current period's retained earnings. Select one: True False
False
The only difference between return on assets (ROA) and return on net operating assets (RNOA) is that the denominator in RNOA is typically smaller than the denominator in ROA because the former is net of operating liabilities. Select one: True False
False
Heller Company offers an unconditional return policy to its customers. During the current period, the company records total sales of $935,000 , with a cost of merchandise to Heller of $374,000 . Based on past experience, Heller Company expects 4% of sales to be returned. How much gross profit will Heller Company recognize for the current period? Select one: a. $538,560 b. $561,000 c. $935,000 d. $388,960 e. $897,600
a. $538,560 ( $935,000 - $374,000 ) x 96% = $538,560
The year-end Year 2 financial statements for Grandier Inc., report net sales of $115,004 million, net operating profit after tax of $4,593 million, net operating assets of $39,502 million. The year-end Year 1 balance sheet reports net operating assets of $41,829 million. The company's year-end Year 2 net operating asset turnover is: Select one: a. 2.83 b. 11.6% c. 2.91 d. 11.3% e. There is not enough information to calculate the ratio.
a. 2.83 Rationale: NOAT = Net sales / Average NOA = $115,004 /[ $39,502 + $41,829 )/2] = 2.83
The year-end financial statements of Time Company reveal average shareholders' equity attributable to controlling interest of $669,826 thousand, net operating profit after tax of $48,032 thousand, net income attributable to the company of $29,068 thousand, and average net operating assets of $283,531 thousand. The company's return on equity (ROE) for the year is: Select one: a. 4.3% b. 16.9% c. There is not enough information to calculate the ratio. d. 7.2% e. 10.3%
a. 4.3% Rationale: ROE = Net income / Average shareholders' equity = $29,068 / $669,826 = 4.3%
In its annual report, Kehl Corporation reported the following (in millions): Total assets$33,936 Total shareholders' equity $12,943 Total liabilities $20,993 What proportion of Kehl Corporation is financed by nonowners? a. 61.9% b. 44.8% c. None of the these are correct. d. 61.7% e. 38.1%
a. 61.9% Nonowner financing for Kehl's assets is provided from liabilities (the shareholders are the owners).$20,993 / $33,936 = 61.9%
In its year-end financial statements, Pillar Inc. reported the following (in millions): 2016 2015 Sales $38,152 $46,541 Cost of goods sold $28,309 $33,211 As a percentage of sales, did Pillar's gross profit increase or decrease during the year? Select one: a. Gross profit decreased from 28.6% to 25.8% b. Gross profit increased from 25.8% to 28.6% c. Gross profit decreased from 74.2% to 71.4% d. Gross profit increased from 71.4% to 74.2% e. There is not enough information to answer the question.
a. Gross profit decreased from 28.6% to 25.8%
On December 31, Nate Inc. reported the following (in millions): Current Assets: $2,594 Current Liabilities: $2,423 Long-term Liabilities:$3,167 Equity: $696 What amount did the company report as total assets? Select one: a. None of the these are correct.. b. $5,590 million c. $7,488 million d. $3,692 million e. $8,880 million
a. None of the these are correct. Rationale: Total assets = Total liabilities + Equity Total assets = $2,423 + $3,167 + $696 = $6,286 million. This amount is not given in the problem.
Trio Company's December 31, Year 2 financial statements reported the following (in millions). Cash December 31 $2,264 Cash from operating activities $3,008 Cash from investing activities $(1,946) Cash from financing activities $(1,750) What did Trio Company report for cash on its December 31, Year 1 balance sheet? Select one: a. $1,576 million b. $2,952 million c. None of the these are correct. d. $4,562million e. $688 million
b. $2,952 million
The year-end financial statements of Time Company reveal average shareholders' equity attributable to controlling interest of $845,656 thousand, net operating profit after tax of $48,032 thousand, net income attributable to the company of $29,068 thousand, and average net operating assets of $357,958 thousand. The company's return on net operating assets (RNOA) for the year is: Select one: a. There is not enough information to calculate the ratio. b. 13.4% c. 42.3% d. 8.1% e. 5.3%
b. 13.4% Rationale: RNOA = NOPAT / average NOA = $48,032 / $357,958 = 13.4%
Maxwell's annual financial statements show operating profit before interest and tax of $524,425 thousand, net income of $321,202 thousand, provision for income taxes of $91,720 thousand and net nonoperating expense before tax of $110,586 thousand. Assume Maxwell's statutory tax rate for the year is 37%. Maxwell's effective tax rate is: Select one: a. 17.5% b. 22.2% c. 28.6% d. 37.0% e. None of these are correct.
b. 22.2%
The financial statements of Calico Corporation, for the May 31 year-end, included the following information relating to their allowance for doubtful accounts: Balance in allowance at the beginning of the year $360 million, accounts written off during the year of $151 million, balance in allowance at the end of the year $351 million. What did Calico Corporation report as bad debt expense for the year? Select one: a. None of the above b. $200 million c. $142 million d. $160 million e. $209 million
c. $142 million Balance in allowance at the beginning of the year + Bad debt expense - Accounts written off during the year = Balance in allowance at the end of the year. Bad debt expense = $351 million - $360 million + $151 million = $142 million.
During the month of March, Weimar World, a tax-preparation service, had the following transactions.• Billed $396,800 in revenues on credit• Received $131,200 from customers' accounts receivable• Incurred expenses of $155,200 but only paid $70,160 cash for these expenses• Prepaid $25,776 for computer services to be used next month. What was the company's accrual basis net income for the month? Select one: a. $215,824 b. $44,384 c. $241,600 d. None of these are correct e. $326,640
c. $241,600 Rationale: Revenues (earned) $396,800 Expenses (incurred) 155,200 Net income $241,600
The year-end financial statements of Pratt Inc. include the following information in a footnote. (in millions) Year 2 Year 1 Allowance for doubtful accounts $5.8 $7.4 Total accounts and other receivables, net $389.3 $416.2 What are the company's current gross accounts and other receivables at the end of Year 2? Select one: a. $383.5 million b. $389.3 million c. $395.1 million d. None of these are correct. e. $390.9 million
c. $395.1 million $389.30 million + $5.80 million = $395.1 million
Ticketmaster contracts with the producer of Blue Man Group to sell tickets online. Ticketmaster charges each customer a fee of $18 per ticket and receives $44 per ticket from the producer. Ticketmaster does not take control of the ticket inventory. Average ticket price for the event is $210 . How much revenue should Ticketmaster recognize for each Blue Man Group ticket sold? Select one: a. None of these are correct. b. $228 because the $166 is cost of goods sold paid to the Blue Man Group producer c. $62 because both the fee from the customer and the Blue Man Group producer are earned d. $18 because the $44 from the producer is similar to a negative cost of goods sold e. $210 because the $166 is cost of goods sold paid to the Blue Man Group producer
c. $62 because both the fee from the customer and the Blue Man Group producer are earned. Ticketmaster should record $62 revenue each time it sells a ticket. Of that, $18 will be received in cash and $44 will be recorded as receivable from the Blue Man Group producers.
In spring of this year, Parmac Engineering Company signed a $192 million contract with the city of Parkersburg, to construct a new city hall. Parmac expects to construct the building within two years and incur expenses of $144 million. The city of Parkersburg paid $48 million when the contract was signed, $96 million within the next six months, and the final $48 million exactly one year from the signing of the contract. Parmac incurred $58 million in costs during the year and the rest in the following year to complete the contract on time. Using the cost-to-cost method how much revenue should Parmac recognize in the current year? Select one: a. $86 million b. None of these are correct. c. $77 million d. $48 million e. $144 million
c. $77 million
Sales for the year = $997,279, Profit margin =18%, and average Assets during the year = $647,770. Return on Assets (ROA) for the year is: Select one: a. 65.0% b. None of the these are correct. c. 27.7% d. 11.7% e. There is not enough information to calculate ROA.
c. 27.7% ROA = Net Income / Average assets. We are not given Net income, but we do know that profit margin is 18%. Thus we can calculate: Net income as Sales × PM = $997,279 x 18% = $179,510.22ROA = $179,510.22 / $647,770 = 27.7%
How would a purchase $320 of inventory on credit affect the income statement? Select one: a. It would decrease liabilities by $320 . b. It would increase cost of goods sold by $320 . c. None of these are correct. d. It would decrease net income by $320 . e. It would decrease noncash assets by $320 .
c. None of these are correct.
On its year-end balance sheet, Blue Corporation, reported cash of $354 million at year-end. The statement of cash flows reports that cash increased by $92 million during the year and that net cash flow from operating activities was $1,306 million .What was the cash flow from investing activities during the year? Select one: a. $446 million cash outflow b. $1,044 million cash inflow d. $446 million cash inflow e. $1,044 million cash outflow
c. There is not enough information to determine the amount. Rationale: Change in cash during the year = Cash from operations + Cash from investing + Cash from financing.We are only given two of the four amounts.
The Tread Company's December 31 financial statements reported the following (in millions): Sales $30,316 Cost of sales 21,944 Other expenses (excluding cost of sales) 5,804 What did Tread Company report for net income for the year ended December 31? Select one: a. $16,140 million b. $58,064 million c. $8,372 million d. $2,568 million e. $14,176 million
d. $2,568 million Sales - Cost of sales - Other expenses = Net income $30,316 - $21,944 - $5,804 = $2,568
United Company's year-end balance sheet reported the following (in millions): Total Assets $60,137 Total Liabilities 47,228 Contributed Capital 5,360 What was United Company's total liabilities and stockholders' equity at December 31? Select one: a. $54,777 million b. $52,588 million c. $12,909 million d. $60,137 million
d. $60,137 million Assets = Liabilities + Stockholders Equity. Assets = $60,137 so this is the total of liabilities and equity combined.
The year-end financial statements of Synergy Inc. shows average net operating assets (NOA) of $8,450 million, average net nonoperating obligations (NNO) of $(4,033) million, average total liabilities of $9,032 million, and average equity of $12,508 million. The company's financial leverage (FLEV) is: Select one: a. There is not enough information to determine the ratio. b. 0.722 c. 0.676 d. (0.322) e. (0.477)
d. (0.322) Rationale: FLEV = Average NNO / Average equity = $(4,033) / $12,508 = (0.322)
Sales for the year = $324,882, Net Income for the year = $36,610, Income from equity investments = $8,603, and average Equity during the year = $123,650. Return on equity (ROE) for the year is: Select one: a. 2.6% b. 11.3% c. There is not enough information to answer the question. d. 29.6% e. 7.0%
d. 29.6% Return on equity = Net income / Average Equity $36,610 / $123,650 = 29.6%
During the year, Kale Inc. had sales of $14,949 million, Cost of merchandise sold of $9,555 million, and gross profit of $5,393 million. What was net income for the year? Select one: a. $4,239 million b. $14,949 million c. $5,393 million d. There is not enough information to calculate the amount. e. $9,555 million
d. There is not enough information to calculate the amount. Rationale: Sales - Total expenses = Net income. There is no information about total expenses, so we cannot compute net income.
At year end, ABC Auto had current assets of $4,335 million and current liabilities of $3,318 million. The firm's net working capital is: Select one: a. $4,335 million b. ($1,017) million c. $7,653 million d. None of these are correct. e. $1,017 million
e. $1,017 million Net working capital = Current assets - Current liabilities. Net working capital = $4,335 - $3,318 = $1,017 million.
Balance Inc. reports a net loss for the year of $(54) million, retained earnings at the end of the year of $21,902 million, and dividends during the year of $1,442 million.What was the company's retained earnings balance at the start of the year? Select one: a. $20,406 million b. $20,514 million c. $21,956 million d. There is not enough information to calculate the amount. e. $23,398 million
e. $23,398 million Rationale: Retained earnings, Ending = Retained earnings, Beg. + Net Income - Dividends$21,902 = Retained earnings, beg. + $(54) - $1,442.Retained earnings at the start of the year were $23,398 million
On September 30, Star Corporation reported, in its annual report, the following (in millions): Year 2 Year 1 Total expenses $46,242.5 $41,008.5 Operating income 10,429.8 9,002.5 Net earnings 7,047.3 6,898.3 What amount of revenues did Star Corporation report for the year ended September 30, Year 2 (in millions)? Select one: a. None of the these are correct. b. $49,625.0 c. $56,672.3 d. $46,391.5 e. $53,289.8
e. $53,289.8
Return on Assets (ROA) = (Net Income / Sales) × Asset Turnover Select one: True False
True
McKinnon Enterprises owns a professional ice hockey team, the Rockford Penguins. The company sells season tickets for its upcoming season and receives $1,056,000 cash. The season starts January 1, with five home games occurring monthly over the next six months. How much revenue will McKinnon Enterprises recognize from its season ticket sales through the end of April? Select one: a. $352,000 b. None of these are correct. c. $528,000 d. $1,056,000 e. $704,000
e. $704,000 Deferred revenue recognized:( $1,056,000 / 6 months) x 4 months = $704,000
The year-end balance sheet of Time Company shows net operating profit margin (NOPM) of 3.1%, net operating asset turnover (NOAT) of 4.41, return on equity of 3.5%, and adjusted return on assets of 2.2%. What is the company's nonoperating return? Select one: a. None of these are correct. b. 1.3% c. -10.6% d. -12.3% e. -10.2%
e. -10.2% Rationale: ROE = RNOA + Nonoperating return = 3.5% - ( 3.1% x 4.41 ) = -10.2%
Selected ratios follow for Barron Inc. for the year ended December 31 (in millions). What is the company's return on equity (ROE) for the year? RNOA: 43.6% PM: 11.6% NOPM: 11.4% AT: 1.51 FL: 1.72 Select one: a. 17.5% b. None of these are correct. c. 13.1% d. 29.6% e. 30.1%
e. 30.1% Rationale: ROE = PM × AT × FL = 11.6% x 1.51 x 1.72 = 30.1%
The income statement of Pratt Inc. reports net sales of $3,749.9 million for the current year. The balance sheet reports accounts receivable, net of $535.3 million at December 31 of the current year and $572.2 million at December 31 of the previous year. The days sales outstanding in the current year are: Select one: a. 7 days b. 52 days c. 7 days d. None of these are correct. e. 54 days
e. 54 days [365 x (( $535.3 + $572.2 )/2]/ $3,749.9 = 54 days
The year-end balance sheet of Fine Foods Inc. reports operating assets of $4,391 million, operating liabilities of $1,653 million, and total liabilities of $2,494 million. Fine Food's average net operating assets are: Select one: a. $1,897 million b. $2,738 million c. $4,391 million d. $6,044 million e. There is not enough information to calculate the amount.
e. There is not enough information to calculate the amount.
The year-end financial statements of Rally Company for the current year, report total revenues of $19,829 million, accounts receivable of $1,399 million at the current year-end, and $1,318 million for the prior year-end. The company's accounts receivable turnover for the year is: Select one: a. 15.0 times b. 14.2 times c. 14.6 times d. 15.4 times e. None of these are correct.
c. 14.6 times Receivables turnover = Sales / Average AR = $19,829 /[( $1,399 + $1,318 ) / 2] = 14.6
A balance sheet shows a company's position over a period of time, whereas an income statement, statement of stockholders' equity, and statement of cash flows show its position at a point in time. Select one: True False
False
Which of the following are not one of the five forces that determine a company's competitive intensity? (Select as many as apply.) Select one or more: A. Bargaining power of suppliers B. Ability to obtain financing C. Threat of substitution D. Threat of entry E. Threat of regulatory intervention
B. Ability to obtain financing E. Threat of regulatory intervention
Which of the following statements are correct (Select all that apply): Select one or more: A. A balance sheet reports on investing and financing activities. B. An income statement reports on financing activities. C. The statement of equity reports on changes in the accounts that make up equity. D. The statement of cash flows reports on cash flows from operating, investing, and financing activities over a period of time. E. A balance sheet reports on a company's assets and liabilities over a period of time.
A. A balance sheet reports on investing and financing activities. C. The statement of equity reports on changes in the accounts that make up equity. D. The statement of cash flows reports on cash flows from operating, investing, and financing activities over a period of time.
A seller, acting as an agent for another company by selling the company's goods on consignment, recognizes the gross amount of the sale as revenue. Select one: True False
False
The overarching purpose of credit risk analysis is to: Select one: A. Quantify potential credit losses B. Identify credit opportunities C. Determine a company's optimal capital structure D. Provide information to banks about credit losses
A. Quantify potential credit losses
When considering the results of an Altman Z-Score analysis a score of 3.85 would suggest? Select one: A. The company is healthy and there is a low bankruptcy potential in the short-term B. The company is exposed to some risk of bankruptcy C. The company is healthy and there is a low bankruptcy potential in both the short and long-term D. The company is in financial distress and there is a high probability of bankruptcy in the short term future
A. The company is healthy and there is a low bankruptcy potential in the short-term
Which of the following is not one of Porter's five forces that determine a company's competitive intensity? Select one: A. Supplier power B. Ability to obtain financing C. Threat of entry D. Threat of substitution
B. Ability to obtain financing
Thomas Company receives information that requires the company to increase its expectations of uncollectible accounts receivable. Which of the following does not occur on the company's financial statements? Select one: A. Bad debt expense is increased B. Accounts receivables (gross) is reduced C. Net income is reduced D. The allowance account is increased E. None of the above
B. Accounts receivables (gross) is reduced
A company's return on assets (ROA) can be disaggregated to reveal which of the following (select all that apply): Select one or more: A. Sales growth B. Asset turnover C. Profit margin D. Asset growth E. Financial leverage
B. Asset turnover C. Profit margin
The variable EBIT divided by Total Assets in the Altman Z-Score measures which of the following concepts? Select one: A. Current level of efficiency B. Current level of profitability C. Current level of liquidity D. Current level of leverage
B. Current level of profitability
Covenants represent: Select one: A. The maximum that a creditor will allow a customer to owe at any point in time B. Terms and conditions set forth in a lending agreement to reduce the probability of nonpayment C. Promises the company makes to the creditor D. The property that a company pledges to guarantee repayment
B. Terms and conditions set forth in a lending agreement to reduce the probability of nonpayment
A credit limit is: Select one: A. The property that a company pledges to guarantee repayment B. A company's total debt C. The maximum that a creditor will allow a customer to owe at any point in time D. The maximum that a company can borrow
C. The maximum that a creditor will allow a customer to owe at any point in time
Identify which of the following items would be reported in the balance sheet. a. Cash b. Sales c. Long-term debt d. Wage expense e. Wages payable f. Retained earnings g. Net income h. Inventory i. Cost of goods sold Items reported in the balance sheet would include: Select one: A. c, e, f, h, and i B. b, e, f, h, and i C. a, c, e, f, and h D. c, d, e, h, and i E. a, b, c, e, and i
C. a, c, e, f, and h
The DuPont analysis disaggregates return on equity into profitability, productivity and leverage components. Select one: True False
True
Which of the following concepts is not captured by one of the variables in Altman's Z-Score? Select one: A. Current level of liquidity B. Current level of profitability C. Current level of efficiency D. Current level of net operating assets
D. Current level of net operating assets Rationale: Current level of profitability is captured by EBIT / Total Assets, and Retained Earnings / Total Assets Current level of liquidity is captured by Working Capital / Total Assets and Current level of efficiency is captured by Sales / Total Assets.
Commercial paper is issued with maturities that do not exceed 270 days because: Select one: A. Usually the collateral consists of short-term assets B. Companies use it to fund working capital needs C. Companies do not want to pay high interest rates D. It exempts the borrowing from SEC regulation
D. It exempts the borrowing from SEC regulation
An example of a situation in which company needs credit for investing activities is: Select one: A. Start-up operating losses B. Seasonal sales patterns C. Refinancing of debt D. Mergers and acquisitions
D. Mergers and acquisitions
When using Altman's Z-Score a Type I error occurs when: Select one: A. The company's Z-score indicates the company is healthy, and the company stays healthy. B. The company's Z-score indicates the company will go bankrupt, and the company stays bankrupt. C. The company's Z-score indicates the company will go bankrupt, and the company stays healthy. D. The company's Z-score indicates the company is healthy, and the company goes bankrupt.
D. The company's Z-score indicates the company is healthy, and the company goes bankrupt.
When using Altman's Z-Score, a Type II error occurs when: Select one: A. The company's Z-score indicates the company will go bankrupt, and the company stays bankrupt B. The company's Z-score indicates the company is healthy, and the company stays healthy C. The company's Z-score indicates the company is healthy, and the company goes bankrupt D. The company's Z-score indicates the company will go bankrupt, and the company stays healthy
D. The company's Z-score indicates the company will go bankrupt, and the company stays healthy
ROE is computed as: Select one: A. Net income attributable to controlling interest / Average equity attributable to controlling interest B. Net income attributable to controlling interest / Net sales C. [RNOA + (FLEV × Spread)] x NCI ratio D. A and B E. A and C
E. A and C
Which of the following are relevant in an analysis of a company's business environment? (Select as many as apply) Select one or more: A. Financing B. Labor C. Buyers D. Governance E. All of the above
E. All of the above
How would a purchase of inventory on credit affect the income statement? Select one: A. It would increase liabilities B. It would decrease retained earnings C. It would increase assets D. Both A and C, above E. None of the above
E. None of the above
Which of the following groups would likely not be interested in the financial statements of a large public company such as Procter & Gamble? Select one: A. Shareholders B. Employees C. Competitors D. Taxing agencies
E. None of the above
Which of the following is included as a component of stockholders' equity? Select one: A. Buildings B. Accounts payable C. Dividends D. Prepaid property taxes E. Retained earnings
E. Retained earnings
A "clean" audit report asserts - among other things - that a) the auditor has prepared all necessary financial statements and b) management has expressed its opinion that they are prepared in conformity with GAAP. Select one: True False
False
A current ratio greater than 1.0 is generally desirable for a company. Select one: True False
True
According to GAAP revenue recognition criteria, in order for revenue to be recognized on the income statement, it must be earned and realized (realizable). Select one: True False
True
All else being equal, higher financial leverage will decrease a company's debt rating and increase the interest rate it must pay. Select one: True False
True
All else equal, when investors consider a firm's return on equity (ROE) they consider less risky a firm that earns proportionately more of that return from operating activities as opposed to nonoperating activities. Select one: True False
True
An increase in common stock would be reflected in the statement of stockholders' equity. Select one: True False
True
Companies that engage in long-term sales contracts such as construction projects often use the cost-to-cost method to recognize revenue. This means that revenue is recognized in proportion to the project's completion. Select one: True False
True
In order to report accounts receivable, net, companies estimate the amount they do not expect to collect from their credit customers. Select one: True False
True
Increasing a company's net operating asset turnover (NOAT) increases both RNOA and ROE. Select one: True False
True
Liabilities and equities are both claims against the assets of a company. Select one: True False
True
Overestimating the allowance for uncollectible accounts receivable can shift income from the current period into one or more future periods. Select one: True False
True
Revenue from a foreign subsidiary will be smaller in U.S. dollars when the dollar strengthens relative to the foreign currency. Select one: True False
True
Revenues from discontinued operations of a company are reported separately from revenues from continuing operations in the income statement. Select one: True False
True
Solvency ratios measure a company's ability to meet its debt obligations. Select one: True False
True
