ADRIAN JOSE POLO GOMEZ

WORKSHOP # 2

A. Mark with an (X) if the statement is True or False.

No. STATEMENT TRUE FALSE

1 The balance sheet provides information to understand the financial position
X
and performance of the company.
2 Profit figures on the income statement are important because they show
investors the past performance of the company through its assets, liabilities
X
and equity.

3 The Cash Flow Statement presents inflow and outflow of the cash in three
main activities (Operating, Investing and Financing). X

4 The Statement of Equity gives the stakeholders an idea if the company has
enough funds to pay for its expenses and purchases. X

5 The manager needs outdated, imprecise and general information of the

business to make good decisions and establish proper policies. X

6 These statements enable the shareholders to understand how the company

has been performing and allow them to understand the dividend payout
X
ratio and forecast the future dividends.

7 Creditors and Lenders use essential metrics in the financial statements of a

company and compare them with those of other companies of the same X
industry to decide if they want to continue with the commercial relationship.
8 Employees consult some financial information of the company in order to
X
understand their wage and ask for a better salary.
9 The government uses companies’ financial statements to assess the
X
performance of the economy in its different sectors.
10 Before applying for further loans, the company shouldn’t analysis its current
X
business loans and credit cards.