What types of information not found in financial statements

Assignment Help Financial Accounting

Reference no: EM132550423

Problem 1: What item is probably the least useful when analyzing financial statements?

Option 1: Management discussion and analysis

Option 2: The notes to the financial statements

Option 3: The statement of cash flows

Option 4: Public relations materials

Problem 2: What types of information CANNOT be found in the financial statements?

Option 1: Details about officer and employee retirement, pension, and stock option plans

Option 2: Pending legal proceedings

Option 3: Reputation of the firm, morale of employees and prestige in the community

Option 4: Disclosures about segments of an enterprise

Problem 3: Using __________ during a period of inflation would result in net income being overstated relative to the LIFO method.

Option 1: LIFO

Option 2: FIFO

Option 3: gross sales

Option 4: net sales

Problem 4: __________ is (are) short-term obligations that arise from credit extended by suppliers for the purchase of goods and services.

Option 1: Accounts receivable

Option 2: Accounts payable

Option 3: Equity

Option 4: Cash

Problem 5: Which of the following statements about a common-size balance sheet is true?

Option 1: Each item on a common-size balance sheet is expressed as a percentage of sales.

Option 2: The common-size balance sheet reveals the composition of expenses relative to revenues.

Option 3: The common-size balance sheet reveals the capital and debt structure of the firm.

Option 4: Each item on a common-size balance sheet is expressed as a percentage of net income.

Problem 6: Which of the items below would be analyzed separate from operating profit?

Option 1: Salaries, interest expense, and equity losses

Option 2: Equity earnings, discontinued operations, and interest income

Option 3: Research and development, dividend income, and interest expense

Option 4: Advertising, cost of goods sold, and selling and administrative expenses

Problem 7: Per FASB rules, firms may use the __________ method or the __________ method to calculate and present cash flow from operating activities.

Option 1: direct; indirect

Option 2: before tax; after tax

Option 3: operational; financial

Option 4: accounting; financial

Problem 8: Reading the "Commitments and Contingencies" note to financial statements is important when assessing the quality of the:

Option 1: balance sheet.

Option 2: income summary.

Option 3: statement of owner's equity.

Option 4: double contingency statement.

Problem 9: The following categories of ratios are used in financial statement analysis: iquidity, Operating efficiency (also referred to as Activity), Leverage, Profitability, and Market measures. Classify the following ratios according to these categories.

Option 1: Earnings per share - operating efficiency; fixed asset turnover - liquidity

Option 2: Earnings per share - leverage; fixed asset turnover - profitability

Option 3: Earnings per share - market measures; fixed asset turnover - operating efficiency

Option 4: Earnings per share - market measures; fixed asset turnover - profitability

Problem 10: The average collection period of accounts receivable is the:

Option 1: average number of days required to convert receivables into write offs/bad debts.

Option 2: average number of days required to convert receivables into cash.

Option 3: total number of days required to convert receivables into write offs/bad debts.

Option 4: total number of days required to convert receivables into cash.

Reference no: EM132550423

Questions Cloud

How much revenue would scott recognize : On September 1, Scott Company receives 16 months of rent in advance, $42,560. How much revenue would Scott recognize from this amount

How relevant are the new skills in the profession : Based on the course content, discuss the new skills you acquired from this class? How relevant are the new skills in your profession?

Accomodating monetary policy on the balance of payments : Analyse the impact of the Reserve Bank's accomodating monetary policy on the balance of payments accounts, holding all other variables constant.

Disruptions caused by corona virus : With reference to the above statement, discuss how Fijian government, New Zealand Government and Solomon Island Government have counteracted

What types of information not found in financial statements : What item is probably the least useful when analyzing financial statements? What types of information CANNOT be found in the financial statements?

Calculate the intrinsic value using the multistage model : Assume that over the next three years dividends will grow as follows, 5% next year, Calculate the intrinsic value using the multistage model

How much should you be willing to pay for the stock : How much should you be willing to pay for the stock if you feel that the 7 percent growth rate can be maintained indefinitely and you require 16 percent return

What is the intended effect of the monetary policy action : What is the intended effect of the monetary policy action on the banking system?

Influence species richness in ecosystem : Which are more closely related to crocodiles: birds or lizards? Explain. What are the three key factors that influence species richness in an ecosystem?

User Account

All Pages