Where Would You Tell Someone to Find the Information Needed

question 111

Multiple Choice

Where would you tell someone to find the information needed to compute the cash flow adequacy ratio?

• A) the balance sheet only
• B) the statement of cash flows and the notes to the statements
• C) the statement of cash flows only
• D) the income statement only

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Definitions:

Dividend Payout Ratio

A financial ratio that shows what portion of a company's earnings is distributed to shareholders in the form of dividends.

Debt-Equity Ratio

A ratio that delineates how company assets are proportionally funded through equity and debt.

Plug Figure

A number inserted into a financial calculation or model to make the numbers balance, often representing missing or estimated data.

Financial Plan

A comprehensive overview of an individual's current financial situation, goals, and strategies to achieve those goals.