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True or False

1. The Income Statement is a financial summary of the company's operating results for a specific period of time, while the Balance Sheet is a statement that summarizes the financial position of a company at a given time in time.

2. Earnings per share are the result of dividing available earnings for common stockholders by the number of common shares authorized.

3. The statement of cash flows provides insight into the company's assets and liabilities and reconciles them with changes in cash and marketable securities over a period of time.

4. In the Statement of Cash Flows, financial flows are cash flows that result from debt and equity transactions, including incurrence and repayment of debt, cash inflows from the sale of shares and outflows Of cash for repurchase of shares or payment of cash dividends.

5. In the Statement of Cash Flows, cash operations are cash flows directly related to the purchase and sale of fixed assets

6. An increase in the company's cash balance is a source of cash flow.

7. The analysis of the ratios merely directs the analysis to potential areas to be considered, but does not provide conclusive evidence on the existence of a problem.

8. The liquidity of a company refers to the overall financial solvency of the company.

9. The future value is the value of a future amount at the present time or time, you are applying compound interest over a specific period of time.

10. Everything stays the same, the higher the interest rate, the higher the future value.

Financial Management, Finance

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