Quiz Ch 03 – T/F Income Statement and Snapshot Analogy
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: The income statement represents a firm at a certain time.
True or false: The income statement represents a firm at a certain time.
True or false: In the statement of cash flows, interest expense payments are classified as financing activities.
True or false: A high market value of assets implies a high market value of liabilities.
True or false: The market value of shareholders’ equity claim equals the difference between the market values of assets and liabilities.
True or false: A positive net income gives a positive cash flow from operations in that period.
True or false: The allocation of capital equipment costs over their estimated lifespan is a contributing factor to the difference between profits and cash.
True or false: The statement of cash flows provides a summary of the firm’s cash movements, encompassing operational, investment, and financing activities, reflecting both cash inflows and outflows.
True or false: Assets can be classified into either tangible or intangible categories.
True or false: Individuals are subject to personal tax on both dividends and interest payments distributed by companies.
True or false: Expanding inventories results in cash utilization, leading to a reduction in the firm’s net cash balance.