Technical Analysis Differs from Fundamental Analysis in That Technical Analysis

question 51

Multiple Choice

Technical analysis differs from fundamental analysis in that technical analysis:

• A) is aimed at the market, while fundamental analysis is aimed at individual stocks.
• B) is based on published market data and focuses on internal factors.
• C) focuses on the long-term trends of production.
• D) does not consider price and volume.

Understand the 5 Cs of credit and their importance in credit decisions.

Identify different types of credit and distinguish between open-end and closed-end credit.

Understand the principles and calculations involved in determining credit limits and debt-to-income ratios.

Recognize federal laws and consumer rights related to credit reporting and fair credit practices.

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Definitions:

Indirect Approach

A method used in cash flow statements where net income is adjusted for non-cash transactions, deferred revenues, and expenses to calculate cash flow from operating activities.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, reflecting a company's investment strategy.

Financing Activities

Activities that result in changes in the size and composition of the contributed equity and borrowings of the entity, including issuing debt, equity transactions, and paying dividends.

Direct Approach

A method of preparing the statement of cash flows where major categories of gross cash receipts and payments are reported.