Fundamentals of Engineering Economics 3rd Edition by Chan Park

Exercise 1

Definitional problems: Listed are eight terms that relate to financial statements:
1. Balance-sheet statement
2. Income statement
3. Cash-flow statement
4. Operating activities
5. Investment activities
6. Financing activities
7. Treasury account
8. Capital account
Choose the term from the list that most appropriately completes each of the following statements:
As an outside investor, you would view a firm's _________ as the most important financial report for gauging the quality of earnings.
Retained earnings as reported in the _________ represent income earned by the firm in past years that has not been paid out as dividends.
The _________ is designed to show how a firm's operations have affected its cash position by providing actual net cash flows into or out of the firm during some specified period.
Typically, a firm's cash flow statement is categorized into three activities: _________, _________ , and __________.
When you issue stock, the money raised beyond the par value is shown in the _________ in the balance-sheet statement.