Question:* A balance sheet typically has:
Answer: • (All of these)
Question:* True or False: The asset turnover ratio measure the firm's efficient use of its liabilities in generating sales income?
Answer: • False
Question:* The SEC usually deals with:
Answer: • public companies
Question:* True or False? There are three basic types of accounting models?
Answer: • True
Question:* True or False? Dividends appear on the income statement.
Answer: • False
Question:* Earnings per share = ?
Answer: • (Net Income - Preferred Stock Dividends) / (Weighted Average of Common Stock Shares Outstanding)
Question:* In 2001, the International Accounting Standards Board (IASB) took over from what prior organization?
Answer: • International Accounting Standards Committee
Question:* Current Dividend Yield = ?
Answer: • (Full Year Dividend) / (Current Share Price)
Question:* A 10Q is a financial report for a company that is given
Answer: • four times a year
Question:* If the price per share of a company is $10 and and its EPS is $1, then what is its PE ratio?
Answer: • 10
Question:* The revenue recognition principle is:
Answer: • when a company will record its revenue
Question:* Which form corresponds to an annual summary?
Answer: • 10k
Question:* Which of the following is a general purpose financial report
Answer: • (All of these)
Question:* Who typically needs to approve a financial statement when they are a SEC filing?
Answer: • accountant
Question:* How do you calculate market capitalization?
Answer: • Number of shares outstanding * share price
Question:* True or False? Charitable organizations that are required to publish financial statements do not produce income statements. Instead they publish statement of activities.
Answer: • True
Question:* True or False? The notes to financial statements are additional information that is added to the beginning of the financial statements
Answer: • False
Question:* Nowadays most financial statements can be found on
Answer: • (All of these)
Question:* True or False? A form 8k is used to notify investors of some meaningful event arising.
Answer: • True
Question:* What does the I stand for in EBITDA?
Answer: • Interest
Question:* The matching principle is:
Answer: • that a company must declare its expenses and revenues together in the same period
Question:* A firm with a low profit margin indicates __________________?
Answer: • a higher risk that a decline in sales will erase profits and result in net loss
Question:* Net profit margin =
Answer: • Net Profit / Revenue
Question:* Revenue - Expenses = what?
Answer: • Net income
Question:* True or false? Operating margin is a good tool when deciding to invest in a company.
Answer: • True
Question:* True or False? The diluted earnings per share is a more reliable way to measure earnings per share.
Answer: • True
Question:* If a firm's payout ratio is greater than 1, the firm is __________?
Answer: • paying more dividends out than they earned
Question:* True or False? Only businesses use financial reports.
Answer: • False
Question:* An example of a financial report is a:
Answer: • 10Q
Question:* What was the purpose of the Sarbanes-Oxley Act of 2002?
Answer: • decrease fraudulent activity of businesses
Question:* Which activity is represented first in the Cash Flow Statements?
Answer: • Operating
Question:* Which is the correct accounting equation?
Answer: • assets - liabilities = net worth
Question:* The cash flow statement details a firm's _________?
Answer: • liquidity
Question:* When are current liabilities due?
Answer: • Within one year
Question:* True of False? Financial statements need to be audited.
Answer: • True
Question:* True or False? A personal financial statement is useful when trying to obtain a loan.
Answer: • True
Question:* Accrual Basis Accounting matches what?
Answer: • Revenues and Expenses
Question:* The full disclosure principle indicates...
Answer: • a company must disclose all pertininant information in regards to the financial statement which would affect an investor's decision
Question:* The general formula for a balance sheet is
Answer: • Assets = Liabilities + Equity
Question:* The Three Parts of the Cash Flow Statements include Operating, Investing and ______?
Answer: • Financing
Question:* If the Net Present Value of a project is postive then __________?
Answer: • the firm should invest in the project
Question:* An example of an SEC filing is a:
Answer: • 10K
Question:* What does the SEC stand for?
Answer: • Security Exchange Commission
Question:* What does it mean if a company has a negative EPS?
Answer: • The company is losing money
Question:* True or False? A cash flow statement shows only the inflows of cash into the company.
Answer: • False
Question:* The balance sheet is also referred to as what?
Answer: • Statement of Financial Position
Question:* Which of the following is an example of a non-current asset?
Answer: • Property
Question:* True or False? Financial reporting is a financial statement that is a proper documentation of the financial activities of a business.
Answer: • True
Question:* True or False? Creditors use financial reports to make decisions on loans.
Answer: • True
Question:* The single step income statement approach totals revenues and subtracts ________?
Answer: • Expenses
Question:* Financial reports are filled out based on the:
Answer: • Generally Accepted Accounting Principles
Question:* Which of the following is a current asset?
Answer: • Accounts Receivable
Question:* The GAAP is comprised of:
Answer: • (All of these)
Question:* If a bond is trading at par, what is its face value?
Answer: • 100
Question:* The balance sheet reports a company's assets, liabilities and what?
Answer: • Ownership Equity
Question:* Financial reports are used to find:
Answer: • (All of these)
Question:* True or False? Financial reports are not important in making investment decisions.
Answer: • False
Question:* True or False? ROA stands for Return on Asset.
Answer: • True
Question:* True or False? The balance sheet is a snapshot of a firm's financial position.
Answer: • True
Question:* What are the three parts of a firm's balance sheet?
Answer: • Assets, Liabilities, Equity
Question:* An item needed for financial reporting is:
Answer: • (All of these)
Question:* The cost principle is:
Answer: • when the cost of something matches the accounting information on the balance sheet
Question:* True or False? Earnings per share do not include taxes for the year.
Answer: • False
Question:* What do you obtain from this expression: (Earnings After Tax / Net Profit After Tax) - Payable Dividends
Answer: • Retained Earnings
Question:* How do you calculate goodwill?
Answer: • total assets - total liabilities
Question:* The financial crisis of 2008 led to more
Answer: • (All of these)
Question:* Operational efficiency is measured by which part of the DuPont ratio?
Answer: • Asset turnover
Question:* Return on Asset = Net income / Sales * ?
Answer: • Sales / Total Assets
Question:* Which of the following are not considered financial reports?
Answer: • 3rd party analysis
Question:* A decrease in non-current assets is _________ net income.
Answer: • added to
Question:* The DuPont Analysis measures breaks down the Return of Equity into how many parts?
Answer: • 5
Question:* The qualitative characteristics of financial statements include Materiality and
Answer: • Faith representation
Question:* True or False? Net operating gains are added to net income when calculating a cash flows operating activity?
Answer: • False
Question:* True or False? The SEC and FASB have similar duties.
Answer: • True
Question:* True or False? Working capital is the money it takes to pay off its current liabilities.
Answer: • False
Question:* True or False? Financial reporting is not needed by small companies listed on the OTC bulletin board.
Answer: • True
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