1. What is the purpose of financial statement analysis for both external and internal users?
2. Define variable cost, fixed cost, and mixed cost.
3. Define liabilities and explain the difference between current and long-term liabilities.
4. Explain the difference between short-term and long-term investments. Cite examples of each.
5. Define and discuss the differences between operating, investing and financing activities.
6. When making capital budgeting decisions, companies usually prefer shorter payback periods. Explain why shorter payback periods are desirable.