| 1. |
What is meant by the term operating cycle? |
| 2. |
Define current assets. What basis is used for ordering individual items within the current assets section? |
| 3. |
Distinguish between long-term investments and property, plant, and equipment. |
| 4. |
How do current liabilities differ from long-term liabilities? |
| 5. |
Identify the two parts of stockholders’ equity in a corporation and indicate the purpose of each. |
| 6. |
(a) Julia Alter believes that the analysis of financial statements is directed at two characteristics of a company: liquidity and profitability. Is Julia correct? Explain. |
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(b)Are short-term creditors, long-term creditors, and stockholders primarily interested in the same characteristics of a company? Explain. |