Reading 22 . Financial Statement Analysis: An Introduction 试题整理
PRACTICE PROBLEMS
1. Providing information about the performance and financial position of companies so that urs can make economic decisions best describes the role of:
A .auditing.
B.financial reporting.
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C.financial statement analysis.
2. A company's current financial position would best be evaluated using the:
A. balance sheet.
B .income statement.
C .statement of cash flows.
3 .A company's profitability for a period would best be evaluated using the:
A .balance sheet.
B .income statement.
C .statement of cash flows.
4 .Accounting policies, methods, and estimates ud in preparing financial statements are most likely found in the:
A .auditor's report.
B .management commentary.
C .notes to the financial statements.
5 .Information about management and director compensation would least likely be found in the:短信怎么发
A .auditor's report.转介绍营销方案
B .proxy statement.
C. notes to the financial statements.
6 .Information about a company's objectives, strategies, and significant risks would most likely be found in the:
A .auditor's report.
B .management commentary.
C .notes to the financial statements.
考生评语7 . What type of audit opinion is preferred when analyzing financial statements?
A .Qualified.
B .Adver.
C .Unqualified.
8 . Ratios are an input into which step in the financial statement analysis framework?
A .Process data.
B .Collect input data.
C .Analyze/interpret the procesd data.
Reading 22 . Financial Statement Analysis: An Introduction 试题答案整理
Solutions
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SOLUTIONS
1. B is correct. This is the role of financial reporting. The role of financial statement analysis is to evaluate the financial reports.
2. A is correct. The balance sheet portrays the current financial position. The income stat
ement and statement of cash flows prent different aspects of performance.
3. B is correct. Profitability is the performance aspect measured by the income statement. The balance sheet portrays the current financial position. The statement of cash flows prents a different aspect of performance.
4. C is correct. The notes disclo choices in accounting policies, methods, and estimates.
5. A is correct. Information about management and director compensation is not found in the auditor's report. Disclosure of management compensation isrequired in the proxy statement, and some aspects of management compensation are disclod in the notes to the financial statements.
6. B is correct. The are components of management commentary.
7. C is correct. An unqualified opinion is a "clean" opinion and indicates that the Financial statements prent the company's performance and financial position fairly in accordanc
e with a specified t of accounting standards.
8. C is correct. Ratios are an output of the process data step but are an input into the analyze/interpret data step.
Reading 23 . Financial Reporting Mechanics 试题整理
1. Which of the following items would most likely be classified as an operating activity?
A .Issuance of debt.
B .Acquisition of a competitor.
C. Sale of automobiles by an automobile dealer.
2. Which of the following items would most likely be classified as financing activity?
A .Issuance of debt.
B .Payment of income taxes.
C .Investments in the stock of' a supplier.
3. Which of the following elements reprents an economic resource?
销售渠道长度>泰国电影 A. Ast.
B .Liability.
C. Owners' equity.
4 .Which of the following elements reprents a residual claim?
A .Ast.
B .Liability.
C .Owners' equity.
5. An analyst has projected that a company will have asts of €2,000 at year-end and liabilities of €1,200. The analyst's projection of total owners' equity should be clost to:
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A . €800.
B . €2,000.
C. €3,200.
6. An analyst has collected the following information regarding a company in advance of its year-end earnings announcement (in millions):
Estimated net income $ 200
Beginning retained earnings $ 1,400
Estimated distributions to owners $ 100
The analyst's estimate of ending retained earnings {in millions} should be clost to:
A .$1,300.
B. $1,500.
C. $1,700.
7. An analyst has compiled the following information regarding Rubsam, Inc.
