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Posts tagged as “financial statements”

Analysis of Financial Statements

Analysis of Financial Statements 1. The income statement measures the flow of funds into (i.e. revenue) and out of (i.e. expenses) the firm over a certain time period. It is always based on accounting data. a. True b. False ANSWER: True 2. The balance sheet is a financial statement measuring the flow of funds into and out of various accounts over time while the income statement measures the progress of the firm at a point in time. a. True b. False ANSWER: False 3. An increase in an asset account is a source of cash, whereas an increase in a…