Match each of the following terms (1 - 9) with the phrase below (A - J) that mos
ID: 2589934 • Letter: M
Question
Match each of the following terms (1 - 9) with the phrase below (A - J) that most closely describes it. Each answer may be used only once. First one completed as an example. Answer # Item name H 1. Statement of Cash Flows 2. Financial leverage 3. Gross margin 4. Horizontal analysis 5. Income statement 6. Investing activity for PP&E 7. Balance sheet 8. Operating income 9. Vertical analysis A. Determines the amount and % change for each line item of financial statements from one year to the next B. Activities that impact long-term assets C. A report that explains the GAAP rules used to prepare the Financial Statements. D. Using debt to increase returns to stockholders E. Sales less cost of goods sold F. Contains assets, liabilities, and stockholders’ equity at the end of the period G. Reports the revenues and expenses for the period H. Reports the sources and uses of cash and cash equivalents I. Analysis of financial statements based on a percentage of total assets or net sales J. Indicates the income generated by the ongoing activities of the business
Explanation / Answer
1 Statement of Cash Flows H Reports the sources and uses of cash and cash equivalents 2 Financial leverage D Using debt to increase returns to stockholders 3 Gross margin E Sales less cost of goods sold 4 Horizontal analysis A Determines the amount and % change for each line item of financial statements from one year to the next 5 Income statement G Reports the revenues and expenses for the period 6 Investing activity for PP&E B Activities that impact long-term assets 7 Balance sheet F Contains assets, liabilities, and stockholders’ equity at the end of the period 8 Operating income J Indicates the income generated by the ongoing activities of the business 9 Vertical analysis I Analysis of financial statements based on a percentage of total assets or net sales