HSM 340 WEEK 2 Quiz 1. Question : A statement that reports inflows and outflows of cash during the accounting period in the categories of operations, investing, and financing, is called a(an): Question 2. Two major methods of asset valuation are: Question 3._____ is the most important financial metric to review to determine long-term financial viability. Question 4. What should be a firm’s primary long-term financial objective? Question 5 What are the major reasons for accrual accounting? Question 6. What is an audit (in the context of financial accounting)? Question 7 The HC method, which uses unadjusted historical costs, does not take into account depreciation expenses, purchasing power, and unrealized gains in replacement value. Despite these weaknesses as a financial reporting method, the HC method is used more frequently for accounting purposes than other methods, such as the HC-GPL, CV, and CV-GPL methods. Why is this so? Question 8. List and describe the three categories of net assets.
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