Sources of data
Companies prepare financial reports to report to investors and creditors on financial _________ and financial _____________.
performance and strength
What is the basic equation underlying the income statement?
revenue - expenses = net income or net loss
_______ generally present the four key financial statements and footnotes but are not audited.
Interim reports
_________ is the ability to react and adapt to financial adversities and opportunities.
financial flexibility
The statement of operations is commonly called as _________.
income statement / statement of income
In ______, management must highlight any favorable or unfavorable trends and identify significant events and uncertainties that affect the company ’ s liquidity, capital resources, and results of operations.
Management Discussion and Analysis
computation of financial ratios are conducted in step number ___ of the FSA framework.
3
Analysts must also evaluate ______ disclosures regarding the use of alternative accounting methods, estimates, and assumptions.
footnote
Balance sheet (statement of financial position) is also known as statement of financial _________.
condition
(True or False) Independent audit report provides reasonable assurance that the financial statement analysis is fairly presented.
False
GAAP stands for ______________
Generally Accepted Accounting Principles
How often should an independent audit be performed?
once a year
The cash flow statement is a summary of ________ and _________ of cash
sources and uses
This type of opinion states that the financial statements give a “ true and fair view ” (international) or are “ fairly presented ” (international and U.S.) in accordance with applicable accounting standards.
unqualified audit opinion
IFRS stands for _________
International Financial Reporting Standards
Under what step of the FSA framework are most of the formulated questions in step 1 answered?
step 4
statement of changes in owners' equity can also be called as statement of changes in shareholders' equity or statement of ________ __________.
retained earnings
This occurs when, for some reason, the auditors are unable to issue an opinion.
disclaimer of opinion
_______ occurs when the financial statements materially depart from accounting standards and are not fairly presented.
adverse audit opinion
(True or False) Financial statement analysis adheres to more standards than financial reporting.
False