Questions from Financial Management

Q: Why don't we calculate the total difference in the equity accounts between

Why don't we calculate the total difference in the equity accounts between the beginning and end of the year and consider that difference as a source or use of cash? Why do we similarly exclude the ca...

Q: What are free cash flows? Who is likely to be most

What are free cash flows? Who is likely to be most interested in them? Why?

Q: Outline the thinking behind ratio analysis in brief, general terms (

Outline the thinking behind ratio analysis in brief, general terms (a few lines; don't go into each ratio individually).

Q: The present format for the statement of cash flows is organized according

The present format for the statement of cash flows is organized according to operating activities, investing activities, and financing activities. That format has only been in use since the late 1980...

Q: Financial ratios don't do you much good by themselves. Explain.

Financial ratios don't do you much good by themselves. Explain.

Q: What is the reasoning behind using the current ratio as a measure

What is the reasoning behind using the current ratio as a measure of liquidity?

Q: Separate the following list of assets into real assets and financial assets

Separate the following list of assets into real assets and financial assets. What are the distinguishing characteristics of each type of asset? Delivery Truck Factory Building Corporate Bond Inve...

Q: What is the primary factor that determines the price of securities?

What is the primary factor that determines the price of securities? Can you think of another factor that might significantly affect how investors value the first factor?

Q: Discuss the differences, similarities, and ties between finance and accounting

Discuss the differences, similarities, and ties between finance and accounting.

Q: Discuss the relationship between finance and economics.

Discuss the relationship between finance and economics.