Financial statements and analysis - Accounting statements and cash flow

4 important questions on Financial statements and analysis - Accounting statements and cash flow

What a firms owns

The assets

Analyzing a balance sheet:

  • Accounting liquidity
  • debt vs equity
  • value vs cost

Refers to the ease and quickness with which assets can be converted to cash

Accounting liquidity
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When a firm borrows who gets first claim on the cash flow?

The bondholder

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