Which of the following is/are true about the balance sheet and income statement?
I). The income statement reflects a summary of activity that occurs over some period of time while the balance sheet is a snapshot taken at a single point in time.
II). Both represent a summary of activity that occurs over some period of time.
III). The two, combined, give a reasonable estimate of the firm's cash flows.

Credit investors may use the financial information to make economic decisions, including:
I). Determining the creditworthiness of a company.
II). Assigning a debt rating to a bond issue.
III). Valuating a stock for making an investment recommendation to others.
IV). Examining compliance with debt covenants or other contractual arrangements.

An important distinction between the direct method and the indirect method of preparing a statement of cash flows is that:

A firm should accept a project if _________, according to the NPV rule.

For random variable X from a binomial random variable with parameters N and p, we can approximate a probability such as P(X 2) with a normal distribution provided _______.