Balance Sheet and Question Essay

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Question 1
0 out of 1.2 points

Assets for a particular business might include

Selected Answer:
d.
cash, property, plant, and equipment, and accumulated other comprehensive income.

Question 2
1.2 out of 1.2 points

Which of the following activities reported in the Statement of Cash Flows is not a financing activity?

Selected Answer:
b.
Investing in equity securities of other companies.

Question 3
1.2 out of 1.2 points

What level are inputs for estimating fair values are those inputs include quoted prices for similar assets or liabilities in active or inactive markets, otherobservable information such as yield curves and price indexes, and other observable data such as market-based correlation estimates?

Selected Answer:
b.
Level 2.

Question 4
1.2 out of 1.2 points

If a portfolio manager had to estimate the fair value of privately placed bond issues, which of the following would he/she most likely identify as the level of inputs to determine this?

Selected Answer:
b.
Level 2.

Question 5
1.2 out of 1.2 points

Relevant asset valuations refer to all of the following except:

Selected Answer:
c.
they are always subjective.

Question 6
1.2 out of 1.2 points

All of the following can be used to describe reliability of accounting information except:

Selected Answer:
c.
biased.

Question 7
1.2 out of 1.2 points

The accrual basis of accounting recognizes

Selected Answer:
d.
revenue when all or a substantial portion is performed

Question 8
1.2 out of 1.2 points

The following steps make up the steps in financial statement analysis. 1. Identify the strategies the firm pursues to gain and sustain a competitive advantage. 2. Analyze the current profitability and risk of the firm using information in the financial statements. 3. Value the firm. 4. Identify the economic characteristics and competitive dynamics of the industry in which a particular firm participates. 5. Assess the quality of the firm’s financial statements and, if necessary, adjust them for such desirable characteristics as sustainability or comparability. 6. Prepare forecasted financial statements.

Which of the following is the proper order for these interrelated sequential steps?

Selected Answer:
d.
4,1,5,2,6,3

Question 9
1.2 out of 1.2 points

Which of the following is a question an analyst would ask when assessing the quality of a firm’s financial statements?

Selected Answer:
a.
Do earnings include nonrecurring gains or losses?

Question 10
1.2 out of 1.2 points

The two categories of shareholders' equity usually found on the balance sheet of a corporation are

Selected Answer:
d.
common stock and retained earnings.

Question 11
1.2 out of 1.2 points

Why is the operating activities section of the statement of cash flows often believed to be the most important part of the statement?

Selected Answer:
a.
Because it indicates a company's ability to generate cash from sales to meet current cash payments for goods or services.

Question 12
1.2 out of 1.2 points

The use of acquisition cost as a valuation method is justified on the basis that acquisition cost is:

Selected Answer:
d.
objective

Question 13
0 out of 1.2 points

Permanent tax differences are revenues and expenses

Selected Answer:
d.
that are included in both the tax return and income statement, but in different accounting periods.

Question 14
0 out of 1.2 points

Which form does the balance sheet equation take in the United Kingdom?

Selected Answer:
c.
Noncurrent Assets - Current assets = Noncurrent Liabilities - Current Liabilities + Shareholders’ Equity

Question 15
1.2 out of 1.2 points

Which financial statement for a business would you look at to determine the company's earnings performance during an accounting period?

Selected Answer:
b.
income statement.

Question 16
0 out
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