Short Essay Questions 1.Distinguish between backward-looking and forward-looking as it pertains to financial statements. 2.What role do investment services, such as Moody’s and Standard & Poor's,...

Short Essay Questions

1.Distinguish between backward-looking and forward-looking as it pertains to financial statements.

2.What role do investment services, such as Moody’s and Standard & Poor's, play in the assessment of a business environment?

3.Comment on the following news headline: "Van Buren, Inc. Takes a Bath in Current Year."

4.Indicate three reasons why reported book value and true value may differ.

5.What must an analyst learn first prior to assessing a particular business environment?

6.Identify two forms of analyzing financial statements at a particular point in time. Which of these forms is subject to great variation among different analysts?