Question 1

In the statement of cash flows, purchases of plant assets are considered to be investing activities.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements is INCORRECT?

Accepted Answer

A) Different companies tailor the EVA® computations to meet their own needs. 
B) It can be argued that the stock market is inefficient because stock prices cannot reflect all publicly accessible data. 
C) Market efficiency has implications for management action and for investor decisions. 
D) Investors seek to manage risk, diversify investments, and minimize transaction costs. 
A) Different companies tailor the EVA® computations to meet their own needs. 
B) It can be argued that the stock market is inefficient because stock prices cannot reflect all publicly accessible data. 
C) Market efficiency has implications for management action and for investor decisions. 
D) Investors seek to manage risk, diversify investments, and minimize transaction costs.

Question 3

A type of analysis that indicates the direction a business is taking is:

Accepted Answer

A) benchmarking. 
B) economic value added analysis. 
C) vertical analysis. 
D) trend percentages. 
A) benchmarking. 
B) economic value added analysis. 
C) vertical analysis. 
D) trend percentages.

Question 4

If a company has sales of $250 in 2017 and $225 in 2018, the percentage decrease from 2017 to 2018 is 10%.

Accepted Answer

A) True 
 B)False

Question 5

A company reports the following information from the statement of cash flows:   Which line item provides a signal that the company may have cash flow problems?

Accepted Answer

A) net cash provided by operating activities 
B) net income 
C) net cash provided by investing activities 
D) net cash used by financing activities 
A) net cash provided by operating activities 
B) net income 
C) net cash provided by investing activities 
D) net cash used by financing activities

Question 6

Bryanwood Company reports the following data:   Based on the above information, what can be said about the company's business strategy?

Accepted Answer

A) The company has lost control of operating expenses. 
B) The company has reduced cost of goods sold. 
C) The company has successfully undertaken some cost-cutting measures for operating expenses. 
D) The company has fewer sales in 2017 than 2016. 
A) The company has lost control of operating expenses. 
B) The company has reduced cost of goods sold. 
C) The company has successfully undertaken some cost-cutting measures for operating expenses. 
D) The company has fewer sales in 2017 than 2016.

Question 7

Wilhelm Company's gross profit percentages for the past 3 years are:   Based on the above data, what can be said about the Wilhelm Company?

Accepted Answer

A) The sales volume is decreasing. 
B) The company is decreasing the income tax expense. 
C) The company is controlling operating expenses. 
D) The company is controlling cost of goods sold. 
A) The sales volume is decreasing. 
B) The company is decreasing the income tax expense. 
C) The company is controlling operating expenses. 
D) The company is controlling cost of goods sold.

In the statement of cash flows, purchases of plant assets are considered to be investing activities.

Which of the following statements is INCORRECT?

A type of analysis that indicates the direction a business is taking is:

If a company has sales of $250 in 2017 and $225 in 2018, the percentage decrease from 2017 to 2018 is 10%.

A company reports the following information from the statement of cash flows: Which line item provides a signal that the company may have cash flow problems?

Bryanwood Company reports the following data: Based on the above information, what can be said about the company's business strategy?

Wilhelm Company's gross profit percentages for the past 3 years are: Based on the above data, what can be said about the Wilhelm Company?

The Financial Statements

Transaction Analysis

Accrual Accounting Income

Internal Control Cash

Short-Term Investments Receivables

Inventory Cost of Goods Sold

Plant Assets, Natural Resources, Intangibles

Long-Term Investments the Time Value of Money

Liabilities

Stockholders Equity

Evaluating Performance: Earnings Quality, the Income Statement, Statement of Comprehensive Income

The Statement of Cash Flows

Filters

Exam 13: Financial Statement Analysis

In the statement of cash flows, purchases of plant assets are considered to be investing activities.

Which of the following statements is INCORRECT?

A type of analysis that indicates the direction a business is taking is:

If a company has sales of $250 in 2017 and $225 in 2018, the percentage decrease from 2017 to 2018 is 10%.

A company reports the following information from the statement of cash flows: Which line item provides a signal that the company may have cash flow problems?

Bryanwood Company reports the following data: Based on the above information, what can be said about the company's business strategy?

Wilhelm Company's gross profit percentages for the past 3 years are: Based on the above data, what can be said about the Wilhelm Company?

The Financial Statements

Transaction Analysis

Accrual Accounting Income

Internal Control Cash

Short-Term Investments Receivables

Inventory Cost of Goods Sold

Plant Assets, Natural Resources, Intangibles

Long-Term Investments the Time Value of Money

Liabilities

Stockholders Equity

Evaluating Performance: Earnings Quality, the Income Statement, Statement of Comprehensive Income

The Statement of Cash Flows

Filters