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FIN305 All Chapters Quizes 2018 (Perfect Answer)
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FIN305 Unit 1 Chapter 1-2 Quiz Latest 2018

Question

Question 1

1 out of 1 points

According to SFAC No. 6, assets can be defined by which of the following?

Probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past trans-actions or events.

Probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.

Residual interest on the assets of an entity that remains after deducting its liabilities.

Increases in equity of a particular business enterprise resulting from transfers to the enterprise from other entities of something of value to obtain or increase ownership interests ( or equity) in it.

Question 2

0 out of 1 points

In addition to the company’s principal financial statements, the Form 10- K and shareholder annual reports must include the following:

Information on the market for holders of common stock and related securities, including high and low sales price, frequency and amount of dividends, and number of shares

Five- year summary of selected financial data

Two years of audited balance sheets, three years of audited statements of income and statements of cash flows

Disclosure of the domestic and foreign components of pretax income

All of the above.

Question 3

1 out of 1 points

This item need not be provided with a complete set of financial statements:

Note disclosure of such items as accounting policies

A 20- year summary of operations

Balance sheet

Statement of cash flows

Question 4

1 out of 1 points

Which party has the primary responsibility for the financial statements?

Bookkeeper

Auditor

Management

Cost accountant

Question 5

1 out of 1 points

Which of the following is not an objective of financial reporting?

Financial reporting should provide information that is useful to present and potential investors and creditors and other users in making rational investment, credit, and similar decisions.

Financial reporting should provide information to help present and potential investors and creditors and other users in assessing the amounts, timing, and uncertainty of prospective cash receipts from dividends or interest and the proceeds from the sale, redemption, or maturity of securities or loans.

Financial reporting should provide information about the economic resources of an enterprise, the claims against those resources, and the effects of transactions, events, and circumstances that change the resources and claims against those resources.

Financial accounting is designed to measure directly the value of a business enterprise.

Question 6

1 out of 1 points

From the point of view of analysis, which classification of an audit opinion indicates that the financial statements carry the highest degree of reliability?

Unqualified opinion

Disclaimer of opinion

Qualified opinion

Adverse opinion

Question 7

1 out of 1 points

If assets are $ 40,000 and stockholders’ equity is $ 10,000, how much are liabilities?

$ 30,000

$ 50,000

$ 20,000

$ 60,000

Question 8

1 out of 1 points

Which of the following is a characteristic of information provided by external financial reports?

The information is exact and not subject to change.

The information is frequently the result of reasonable estimates

The information pertains to the economy as a whole.

The information is provided at the least possible cost.

Question 9

1 out of 1 points

Audit opinions cannot be classified as which of the following?

All- purpose

Disclaimer of opinion

Adverse opinion

Qualified opinion

Question 10

1 out of 1 points

According to SFAC No. 6, expenses can be defined by which of the following?

Outflows or other consumption or using up of assets or incurrences of liabilities ( or a combination of both) from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity’s ongoing major or central operations.

Inflows or other enhancements of assets of an entity or settlements of its liabilities ( or a combina-tion of both) from delivering or producing goods, rendering services, or other activities that consti-tute the entity’s ongoing major or central operations.

Increases in equity ( net assets) from peripheral or incidental transactions of an entity and from all other transactions and other events and circumstances affecting the entity during a period, except those that result from revenues or investments.

Decreases in equity ( net assets) from peripheral or incidental transactions of an entity and from all other transactions and other events and circumstances affecting the entity during a period, except those that result from expenses or distributions to owners.

 

FIN305 Unit 2 Chapter 3-4 Quiz Latest 2018

Question

Question 1

1 out of 1 points

________ are normally classified as a current liability on the balance sheet.

Prepaid expenses

Land

Inventories

Accounts payable

Question 2

1 out of 1 points

A quasi-reorganization:

may produce a positive balance in retained earnings

will restate retained earnings to zero.

should appear on the income statement as part of continuing operations

requires the approval of a bankruptcy court

Question 3

1 out of 1 points

If the Investor Company owns 20% of the stock of Investee Company and Investee Company reports profits of $100,000, then Investor Company reports equity income of:

$80,000

$20,000

$40,000

$60,000

Question 4

1 out of 1 points

Which of the following is seldomly a preferred stock characteristic?

voting rights

call ability by the issuer

accumulation of dividends

preference in liquidation

Question 5

1 out of 1 points

Gross profit is the difference between:

net income and operating income

revenues and expenses

sales and cost of goods sold

gross sales and sales discounts

Question 6

1 out of 1 points

Employee Stock Ownership Plans (ESOPs):

will not dilute the proportional ownership of existing shareholders.

may be created for a temporary purpose.

do not produce any tax advantages for plan participants.

may borrow funds from a bank.

Question 7

1 out of 1 points

Which of the following will be disclosed in the reconciliation of retained earnings?

net income / net loss

adjustment for an error of a prior period

dividends

all of the answers are correct

Question 8

1 out of 1 points

Which of the following would be classified as an extraordinary item on the income statement?

loss on disposal of a segment of business

a sale of land

loss on disposal of a segment of business

a loss from a flood in a location that would not be expected to flood

Question 9

1 out of 1 points

________ is considered a tangible asset.

Equipment

A patent

A copyright

Goodwill

Question 10

0 out of 1 points

The following relate to Data Original in 2008. What is the ending inventory?

Purchases                                            $540,000

Beginning Inventory                           80,000

Customer Returns                               10,000

Sales                                                    800,000

Cost of Goods Sold                            490,000

$120,000

$140,000

$210,000

$260,000

FIN305 Unit 3 Chapter 5 Quiz Latest 2018

Question

Question 1

1 out of 1 points

A horizontal analysis compares each amount with its base amount for a selected base year.

True

False

Question 2

1 out of 1 points

Management is a user of financial analysis. Which of the following comments does not represent a fair statement as to the management perspective?

Management is not interested in the view of investors.

Management is interested in liquidity.

Management is interested in the debt position.

Management is interested in the financial structure of the entity.

Question 3

1 out of 1 points

Which service includes over 800 different lines of business?

Annual Statement Studies

Standard & Poor’s Industry Surveys

Almanac of Business and Industrial Financial Ratios

Industry Norms and Key Business Ratios

Question 4

1 out of 1 points

Which service represents a compilation of corporate tax return data?

Annual Statement Studies

Standard & Poor’s Industry Surveys

Almanac of Business and Industrial Financial Ratios

Industry Norms and Key Business Ratios

Question 5

1 out of 1 points

Which of the following statements is incorrect?

Comparison of income statement and balance sheet numbers, in the form of ratios, should not be done.

Ratios are fractions expressed in percent or times per year.

A ratio can be computed from any pair of numbers.

A very long list of meaningful ratios can be derived.

Question 6

1 out of 1 points

Fremont Electronics has income of $ 1,000,000. Columbus Electronics has income of $ 2,000,000. Which of the following statements is a statement?

Selected Answer:

Columbus Electronics is getting a higher return on assets employed.

Columbus Electronics has higher profit margins than does Fremont Electronics.

Fremont Electronics could be more profitable than Columbus Electronics in relation to resources employed.

No comparison can be made between Fremont Electronics and Columbus Electronics.

Question 7

1 out of 1 points

A figure from this year’s statement is compared with a base selected from the current year.

Horizontal common- size statement

Vertical common- size statement

Funds statement

Balance sheet

Question 8

1 out of 1 points

Which of the following is a publication of the federal government for manufacturing, mining, and trade corporations?

Standard & Poor’s Industry Surveys

Almanac of Business and Industrial Financial Ratios

Industry Norms and Key Business Ratios

The Department of Commerce Financial Report

Question 9

1 out of 1 points

Industry ratios should not be considered as absolute norms for a given industry because of all but which of the following?

Many companies have varied product lines.

The financial services may be private independent firms.

The fiscal year- ends of the companies may differ.

Companies within the same industry may differ in their method of operations.

Question 10

1 out of 1 points

Suppose you are comparing two firms in the coal industry. Which type of numbers would be most meaningful for statement analysis?

Relative numbers would be most meaningful for both firms, especially for interfirm comparisons.

Relative numbers are not meaningful.

Absolute numbers would be most meaningful.

It is not meaningful to compare two firms.

FIN305 Unit 4 Chapter 6 Quiz Latest 2018

Question

Question 1

10 out of 10 points

Listed below are several ratios:

a. days' sales in receivables

b. accounts receivable turnover

c. accounts receivable turnover in days

d. days' sales in inventory

e. inventory turnover

f. inventory turnover in days

g. operating cycle

h. working capital

i. current ratio

j. acid-test ratio

k. cash ratio

l. sales to working capita

Match the ratio with the formula.

Question

__1. Sales                                                                                            Average Working Capital

__2. Net Sales                                                                                     Average Gross Receivables

__3. Current Assets                                                                            Current Liabilities

__4. Cash Equivalents + Marketable Securities + Net Receivables   Current Liabilities

__5. Gross Receivables                                                                       Net Sales/365

__6. Average Gross Receivables                                                        Net Sales/365

__7. Average Inventory                                                                      Cost of Goods Sold/365

__8. Cash Equivalents + Marketable Securities                                  Current Liabilities

__9. Current Assets                                                                            Current Liabilities

__10. Accounts Receivable  +                                                            Inventory Turnover

            Turnover in Days                                                                    in Days

__11. Cost of Goods Sold                                                                  Average Inventory

__12. Ending Inventory                                                                      Cost of Goods Sold/365

 

FIN305 Unit 5 Chapter 7 Quiz Latest 2018

Question

Question 1

1 out of 1 points

Under the Employee Retirement Income Security Act, a company can be liable for its pension plan up to

30% of its net worth

30% of pension liabilites

30% of liabilities

40% of its net worth

Question 2

1 out of 1 points

All but which of these ratios are considered to be debt ratios?

Times interest earned

Debt Ratio

Fixed charge ratio

Current Ratio

Question 3

5 out of 5 points

Match the five ratios with their formulas.

Question

a. times interest earned

b. fixed charge coverage

c. debt ratio

d. debt/equity ratio

e. debt to tangible net worth

_____1.Total Liabilities Shareholders' Equity - Intangible Assets

_____ 2.Total Liabilities Total Assets Recurring Earnings, Excluding Interest Expense, Tax Expense,

_____ 3.Equity Earnings, and Minority Expense Interest Expense, Including Capitalized Interest Recurring Earnings, Excluding Interest Expense, Tax Expense, Equity Earnings, and Minority Earnings

_____ 4. Interest Portion of Rentals Interest Expense, including Capitalized Interest + Interest Portion of Rentals

_____ 5.Total Liabilities Shareholders' Equity

Question 4

1 out of 1 points

Which of the following ratios can be used as a guide to a firm’s ability to carry debt from an income perspective?

Times interest earned

Debt/equity

Debt to tangible net worth

Debt ratio

Question 5

1 out of 1 points

In computing debt to tangible net worth, which of the following is not subtracted in the denominator?

Patents

Land

Goodwill

Trademarks

Question 6

1 out of 1 points

In computing the debt ratio, which of the following is subtracted in the denominator?

Trademarks

Patents

Marketable Securites

None of the above.

FIN305 Unit 6 Chapter 8-9 Quiz Latest 2018

Question

Question 1

Which of the following ratios gives a perspective on risk in the capital structure ?

Book value per share

Degree of financial leverage

Dividend payout

Price / earnings ratio

Question 2

Which of the following items will be reported on the income statement as part of net income?

Prior period adjustment

Unrealized decline in market value of investments

Foreign currency translation

Gain from selling land

Question 3

Book value per share may not approximate market value per share because

Investments may have a market value substantially above the original cost.

Land may have substantially increased in value.

Market value reflects future potential earning power.

All of the above

Question 4

If a firm’s gross profit has declined substantially, this could be attributed to all but which of the following reasons?

The cost of buying inventory has increased more rapidly than selling prices.

Selling prices have declined due to competition.

Selling prices have increased due to competition.

Theft is occurring.

Question 5

Which of the following is considered to be a recurring item?

Discontinued operations

Extraordinary items

Cumulative effect of change in accounting principle

Interest expense

Question 6

A firm has a degree of financial leverage of 1.3. If earnings before interest and tax increase by 10%, then net income

Will increase by 13.0%

Will increase by 13.

Will decrease by 13.0%

Will decrease by 13.

Question 7

Earnings based on percent of holdings by outside owners of consolidated subsidiaries are termed

Equity earnings

Earnings of subsidaries

Investment income

Minority earnings

Question 8

Which of the following is not a type of operating asset?

Intangibles

Receivables

Land

Inventory

Question 9

The earnings per share ratio is computed for

Convertible bonds

Common stock

Redeemable preferred

Nonredeemable preferred

Question 10

Increasing financial leverage can be a risky strategy from the viewpoint of stockholders of companies having

Steady and high profits

Low and falling profits

Relatively high and increasing profits.

A low debt/equity ratio and relatively high profits.

FIN305 Unit 7 Chapter 10-11 Quiz Latest 2018

Question

Question 1

Which of the following is not a typical cash flow under operating activities?

Cash inflows from sale of goods or services

Cash inflows from sale of property, plant, and equipment

Cash outflows to employees

Cash outflows to suppliers

Question 2

Which of the following was not given as a reason for acquirers paying too much in an acquisition?

Overbidding

Overuse of conventional financial statements

Overoptimistic appraisal of market potential

Overestimation of synergies

Question 3

Which of the following represents an internal source of cash?

Cash inflows from financing activities

Cash inflows from investing activities

Cash inflows from selling land

Cash inflows from operating activities

Question 4

Management should use the statement of cash flows for which of the following purposes?

Determine the financial position.

Determine cash flow from investing activities.

Determine the balance in accounts payable.

Determine the balance in accounts receivable.

Question 5

Which of the following would not be an example of the use of a multiple when valuing common equity?

Multiperiod discounted earnings models

Price to earnings (PE)

Price to book

Price to operating cash flow

Question 6

Which of the following ratios would best disclose effective management of working capital by a given firm relative to other firms in the same industry?

A high rate of financial leverage relative to the industry average

A high number of days’ sales uncollected relative to the industry average

A high turnover of net working capital relative to the industry average

A high number of days’ sales in inventory relative to the industry average

Question 7

Notes to financial statements are beneficial in meeting the disclosure requirements of financial reporting. The notes should not be used to

Correct an improper presentation in the financial statements.

Describe depreciation methods employed by the company.

Describe principles and methods peculiar to the industry in which the company operates when these principles and methods are predominately followed in that industry.

Disclose the basis of consolidation for consolidated statements.

Question 8

The concept of conservatism is often considered important in accounting. The application of this concept means that in the event some doubt occurs as to how a transaction should be recorded, it should be recorded so as to

Understate income and overstate assets

Overstate income and overstate assets

Understate income and understate assets

Overstate income and understate assets

Question 9

Which of the following could lead to cash flow problems?

Tightening of credit by suppliers

Easing of credit by suppliers

Reduction of inventory

Selling bonds

Question 10

Working capital is defined as

Current assets less current liabilities.

Cash equivalent accounts less current liabilities.

Current assets less notes payable.

Total assets less current liabilities.

Available solutions
  • FIN305 All Chapters Quizes 2018 (Perfect Answer)
    $46.00

    FIN305 Unit 1 Chapter 1-2 Quiz Latest 2018 Question Question 1 1 out of 1 points According to SFAC No. 6, assets can be defined by which of the following? Probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past trans-actions or events. Probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events. Residual interest on the assets of an entity that remains after deducting its liabilities. Increases in equity of a particular business enterprise resulting from transfers to the enterprise from other entities of something of value to obtain or increase ownership interests ( or equity) in it. Question 2 0 out of 1 points In addition to the company’s principal financial statements, the Form 10- K and shareholder

    Submitted on: 12 Mar, 2018 01:48:12 This tutorial has not been purchased yet .