专业英语课后习题含答案.docVIP

专业英语课后习题答案 【篇一：专业英语课后答案】 ?what are the three basic questions of corporate finance? a. investment decision (capital budgeting): what long-term investment strategy should a firm adopt? b.financing decision (capital structure): how much cash must be raised for therequired investments? c. short-term finance decision (working capital): how much short-term cash flow does company need to pay its bills. ? list three reasons why value creation is difficult. value creation is difficult because it is not easy to observe cash flows directly. the reasons are: a. cash flows are sometimes difficult to identify. b. the timing of cash flows is difficult to determine. c. cash flows are uncertain and therefore risky. concept questions - chapter 2 ? what is the balance-sheet equation? assets = liabilities + stockholders equity ? what three things should be kept in mind when looking at a balance sheet? accounting liquidity, debt vs. equity, and value vs. cost. ? what is the income statement equation? revenue - expenses = income ?what are the three things to keep in mind when looking at an income statement? generally accepted accounting principles (gaap), noncash items, and time and costs. ? what are noncash expenses? noncash expenses are items included as expenses but which do not directly affect cash flow. the most important one is depreciation. ? what is net working capital? it is the difference between current assets and current liabilities. ?what is the change in net working capital? to determine changes in net working capital you subtract uses of net working capital from sources of net working capital. ? how is cash flow different from changes in net working capital? the difference between cash flow and changes in new working capital is that some transactions affect cash flow and not net working capital. the acquisition of inventories with cash is a good example of a change in working capital requirements. ? what is the difference between operating cash flow and tota