Financial Management and Planning

Return on Assets

Earnings Per Share

Net Profit Ratio

Return on Investment

development of benchmarks

window dressing

Interpretation of results

All of these

Assets statements

Statement of financial position

Statement of profit and loss

None of these

two cash effects can be netted and presented as one item in the investing activities section

cash inflow and cash outflow should be reported separately in the investing activities section

two cash effects can be netted and presented as one item in the financing activities section

cash inflow and cash outflow should be reported separately in the financing activities section

Chronological financial statements

Ad-hoc financial statements

Historical financial statements

Concurrent financial statement

Ability

Liquidity

Credibility

None

Operating cycle period

Inventory conversion period

Receivable conversion period

None

Income statement/tells how much a firm is making or losing

Income statement/depicts the structure of a firm’s assets and liabilities

Balance sheet/tells how much a firm is making or losing

Statement of cash flows/depicts the structure of a firm’s assets and liabilities

Depreciation expense

An increase in prepaid expenses

Amortization expense

an increase in land

Rs.5 lac

Rs.3 lac

Rs.12 lac

none of the above