F03 Lesson 1 Exam SCORE 100 PERCENT

Question 1 5 / 5 points
Which of the following is an external source of liquidity?
Question options:

Sales of services

Repurchase of stock

Borrowing

Sales of products
Question 2 5 / 5 points
Which agency requires the filing of Form 10-Ks, Form 10-Qs and Form 8-Ks?
Question options:

FASB

IASB

SEC

GAAP
Question 3 5 / 5 points
What information can be found on a balance sheet?
Question options:

Information to support that assets equal liabilities

The profit or loss for the accounting period

The reasons for changes in the cash account

The financial position on a particular date; i.e. assets, liabilities and shareholders' equity
Question 4 5 / 5 points
What item is NOT included in the notes to the financial statements?
Question options:

Details about inventory and property, plant and equipment

Information about major acquisitions or divestitutures

The management discussion and analysis

A summary of the firm's accounting policies
Question 5 5 / 5 points
What organization has the authority to register, inspect, and discipline auditors of all publicly owned companies?
Question options:

Public Company Accounting Oversight Board

SOX

Congress

FASB
Question 6 5 / 5 points
What information would NOT be found in a firm's annual report?
Question options:

Notes to the financial statements.

Financial Reporting Rulings.

Auditor's report.

High and low stock prices.
Question 7 5 / 5 points
What type of audit report indicates that the financial statements have been presented fairly?
Question options:

An unqualified report

A disclaimer of opinion

A qualified report

An adverse opinion
Question 8 5 / 5 points
In what industry would it be expected that companies would spend a significant amount on research and development activities?
Question options:

Pharmaceutical

Clothes retailer

Groceries

Wholesale distributor of computer parts
Question 9 5 / 5 points
What information can be found on an income statement?
Question options:

The financing and investing activities during an accounting period

Cash inflows and cash outflows

A reconciliation of the beginning and ending balances of all revenue accounts

Revenues, expenditures, net profit or loss and net profit or loss per share
Question 10 5 / 5 points
Which report is NOT required to be filed by public companies to the SEC?
Question options:

Annual reports (Form 10-K)

Financial Reporting Rulings

A prospectus for any new security offering

Quarterly reports (From 10-Q)
Question 11 5 / 5 points
What type of audit report indicates that the financial statements have NOT been presented fairly?
Question options:

A disclaimer of opinion

An unqualified report

A qualified report

An adverse opinion
Question 12 5 / 5 points
Which financial statement presents the results of operations?
Question options:

Balance sheet

Statement of financial position

Income statement

Statement of cash flows
Question 13 5 / 5 points
What information can be found on a statement of stockholders' equity?
Question options:

A reconciliation of the cash account and the retained earnings account.

A reconciliation of the beginning and ending balances of all accounts that appears in the stockholders' equity section of the balance sheet.

A reconciliation of the operating, investing and financing activities of a firm.

A reconciliation of net profit or loss and the cash account.
Question 14 5 / 5 points
Which of the following is an internal source of liquidity?
Question options:

Borrowing

Sales of stock

Gifts and donations

Sales of products or services
Question 15 5 / 5 points
Which financial statement provides information about operating, financing and investing activities?
Question options:

Statement of financial position

Statement of cash flows

Statement of stockholders' equity

Income statement
Question 16 5 / 5 points
Which of the following items is a discretionary expenditure?
Question options:

Union wages

Factory building to produce inventory

Advertising

Taxes
Question 17 5 / 5 points
All of the following items should be discussed in the management discussion and analysis EXCEPT for:
Question options:

anticipated changes in the mix and cost of financing resources.

the market value of all assets.

the internal and external sources of liquidity.

unusual or infrequent transactions that affect income from continuing operations.
Question 18 5 / 5 points
The globalization of business activity has resulted in which of the following?
Question options:

Increased corruption and unethical behavior

A uniform set of accounting rules in all countries

The FASB and IASB working jointly on a project to converge accounting standards

The requirement that U.S. firms use international accounting rules as of 2006
Question 19 5 / 5 points
What basic financial statements can be found in a corporate annual report?
Question options:

Balance sheet, income statement, statement of shareholders' equity, and statement of cash flows

Balance sheet, auditor's report and income statement

Earnings statement and statement of retained earnings

Statement of cash flows and five-year summary of key financial data
Question 20 5 / 5 points
What is an unqualified audit report?
Question options:

A report stating that the auditors are not qualified to report on a firm.

A report that states the financial statements are in violation of GAAP.

A report that states that departures from GAAP exist in the firm's financial statements.

A report that states the financial statements are presented fairly, in all material respects, and are in conformity with GAAP.

     

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