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Kaplanlearn - Quiz Conta

This document contains 10 multiple choice questions related to financial statement analysis and accounting concepts. The questions cover topics such as the role of financial statement analysis, definitions of assets and liabilities, frameworks for financial statement analysis, methods of depreciation, information available on EDGAR, accounting changes, information provided by balance sheets, inventory costing methods, auditor's reports, and components of a balance sheet.

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Russell Leyva
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108 views

Kaplanlearn - Quiz Conta

This document contains 10 multiple choice questions related to financial statement analysis and accounting concepts. The questions cover topics such as the role of financial statement analysis, definitions of assets and liabilities, frameworks for financial statement analysis, methods of depreciation, information available on EDGAR, accounting changes, information provided by balance sheets, inventory costing methods, auditor's reports, and components of a balance sheet.

Uploaded by

Russell Leyva
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Question #1 of 10 Question ID: 1204923

The role of financial statement analysis is most accurately described as:

A) a common requirement for companies that are listed on public exchanges.

the reports and presentations a company uses to show its nancial performance to
B)
investors, creditors, and other interested parties.

the use of information from a company’s nancial statements along with other
C)
information to make economic decisions regarding that company.

Question #2 of 10 Question ID: 1205107

Resources controlled as a result of past transactions that are expected to provide future
benefits are referred to as:

A) assets.

B) equity.

C) liabilities.

Question #3 of 10 Question ID: 1204940

Which of the following is the best description of the financial statement analysis framework?

Gather data, analyze and interpret the data, process the conclusions, assess the
A)
context, report the recommendations, update the analysis.

Gather data, analyze and interpret the data, determine the context, report the
B)
conclusions, update the analysis.

State the objective and context, gather data, process the data, analyze and interpret
C)
the data, report the conclusions or recommendations, update the analysis.
Question #4 of 10 Question ID: 1204970

In its first year of business, Digmore Corporation's balance sheet shows gross fixed assets at
$90 million and accumulated depreciation of $10 million. If the estimated salvage value of these
assets is $10 million, and the original estimated useful life is 8 years, what method of

depreciation did Digmore most likely use?

A) Double-declining-balance.

B) Units of production.

C) Straight Line.

Question #5 of 10 Question ID: 1204938

Which of the following is least likely to be available on EDGAR (Electronic Data Gathering,
Analysis, and Retrieval System)?

A) Corporate press releases.

B) Form 10Q.

C) SEC lings.

Question #6 of 10 Question ID: 1204976

A company changes from an incorrect method of accounting to an acceptable one. Which of the
following statements about this change is most accurate?

A) It is a change in accounting principle and is reported below the line net of taxes.

It is an unusual or infrequent item and is reported in net income from continuing


B)
operations.

It requires restatement of any prior period results that are presented in the current
C)
nancial statements.
Question #7 of 10 Question ID: 1205112

The balance sheet is most likely to provide an analyst with information about a firm's:

A) internal controls.

B) solvency.

C) operating pro tability.

Question #8 of 10 Question ID: 1204968

The first-in-first-out (FIFO) expense recognition method for inventories best describes the
physical flow of goods if customers typically purchase units:

A) selectively from among all units for sale.

B) from the top of a stack.

C) in the same order the units are produced.

Question #9 of 10 Question ID: 1204932

The standard auditor's report is most likely required to:

A) provide an "unquali ed" opinion if material uncertainties exist.

B) provide reasonable assurance that management is reliable.

C) provide reasonable assurance that the nancial statements contain no material errors.

Question #10 of 10 Question ID: 1205108

Two of the elements of a balance sheet are:

A) assets and equity.


B) income and liabilities.

C) equity and cash ows.

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