Author Question: There are four primary financial statements that are used to measure the performance of a firm. ... (Read 90 times)

hbsimmons88 · **on:** Jul 10, 2018

There are four primary financial statements that are used to measure the performance of a firm. Which of the choices below are included among these four?

A) The balance statement and income statement
B) The income sheet and statement of retained earnings
C) The statement of cash flows and statement of balance
D) The balance sheet and statement of cash flows

Question 2

A blue chip stock is best understood as a stock

A)

with a high dividend rate.
B)

that delivers what investors expect dividends and/or growth.
C)

with a low capitalization.
D)

with preferences; that is, it's actually a company's preferred stock.

Jossy · **Reply #1 on:** Jul 10, 2018

Answer to Question 1

Answer: D
Explanation: D) There are four primary financial statements that are used to measure the performance of a firm: the income statement, the balance sheet, the statement of retained earnings, and the statement of cash flows (also known as sources and uses of cash). Together, these four financial statements contain much of the essential historical information about the performance and management choices of a firm.

Answer to Question 2

B