MGT 111 Final: FinalExamReview.doc
Document Summary
Spring, 2008 (be sure to review class notes, text, and articles. ) Understand importance and role of financial information and accounting. Explain the differences between the three major financial statements: balance sheet: financial statement that reports a firm"s financial condition at a specific time. Know the major accounts normally included in balance sheets and income statements. Be able to generate an income statement and a balance sheet, if given a company"s accounts. Explain the importance of budgeting and cash flow analysis, as well as their relationship to making a profit. Understand the role of depreciation and of life and fifo in inventory valuation. Be able to explain personal net worth. 18: know which financial needs must be met with available funds. Distinguish between financing through debt capital and equity capital and list advantages and disadvantages of doing each. Debt financing: debt financing by borrowing money form lending institutions.
