Question 1

Given the information provided about Card Sharks, what is the company's 2013 projected cash balance?

Accepted Answer

A)  $53,934 
B)  $49,524 
C)  $21,873 
D)  $50,820 
A)  $53,934 
B)  $49,524 
C)  $21,873 
D)  $50,820

Question 2

Based on the following statement from the text-"to develop forecasts of individual operating assets and liabilities, you must first determine the underlying operating activities that drive them"-explain what those underlying activities are.

Accepted Answer

For assets such as inventory and propert

Question 3

A company that has a cost structure in which its costs grow at a lesser rate than its sale enjoys ___________________________________.

Accepted Answer

The answer of A company that has a cost structure...

Question 4

The formula for forecasting inventory is ____________ /365 X.

Accepted Answer

Cost of go

Question 5

As a firm progresses through the introduction life-cycle stage, what type of flexible account will it be more likely to use to balance the balance sheet?

Accepted Answer

A)  dividends 
B)  growth related assets 
C)  issued equity 
D)  stock buy-backs 
A)  dividends 
B)  growth related assets 
C)  issued equity 
D)  stock buy-backs

Question 6

When projecting ____________________, the analyst should consider economy-wide factors such as the expected rate of general price inflation in the economy.

Accepted Answer

The answer of When projecting ____________________, the analyst should consider...

Question 7

As a firm progresses through the growth life-cycle stage, what type of flexible account will it be more likely to use to balance the balance sheet?

Accepted Answer

A)  issued debt 
B)  paying down of debt 
C)  dividends 
D)  stock buy-backs 
A)  issued debt 
B)  paying down of debt 
C)  dividends 
D)  stock buy-backs

Question 8

Financial statement forecasts rely on additivity within financial statements and articulation across financial statements. Given this information forecasts of future growth in inventory will most likely affect growth in:

Accepted Answer

A)  accounts receivables. 
B)  accounts payable. 
C)  depreciation. 
D)  salary payable. 
A)  accounts receivables. 
B)  accounts payable. 
C)  depreciation. 
D)  salary payable.

Question 9

In developing forecasts of expenses the analyst must take into consideration that expenses can be broken down into ________________________ or ______________________ components.

Accepted Answer

fixed, var

Question 10

Financial ratio, percentage, and trend comparisons can be distorted by all of the following except:

Accepted Answer

A)  aggressive revenue recognition practices. 
B)  the timing of asset purchases. 
C)  accounting for similar economic fundamentals in similar fashion. 
D)  the presence of nonrecurring items among the firms being analyzed. 
A)  aggressive revenue recognition practices. 
B)  the timing of asset purchases. 
C)  accounting for similar economic fundamentals in similar fashion. 
D)  the presence of nonrecurring items among the firms being analyzed.

Question 11

Nichols and Wahlen's 2004 study showed that superior forecasting provides the potential to earn superior security returns. Nichols and Wahlen's findings indicate:

Accepted Answer

A)  that an investor could earn excess returns if the investor could predict accurately the sign of the change in earnings one year ahead. 
B)  that an investor could earn excess returns if the investor could predict accurately the magnitude of the change in earnings one year ahead. 
C)  that an investor could earn excess returns if the investor could predict accurately the sign of the change in cash flows from operations one year ahead. 
D)  that an investor could earn excess returns if the investor could predict accurately the sign of the change in working capital one year ahead. 
A)  that an investor could earn excess returns if the investor could predict accurately the sign of the change in earnings one year ahead. 
B)  that an investor could earn excess returns if the investor could predict accurately the magnitude of the change in earnings one year ahead. 
C)  that an investor could earn excess returns if the investor could predict accurately the sign of the change in cash flows from operations one year ahead. 
D)  that an investor could earn excess returns if the investor could predict accurately the sign of the change in working capital one year ahead.

Given the information provided about Card Sharks, what is the company's 2013 projected cash balance?

Based on the following statement from the text-"to develop forecasts of individual operating assets and liabilities, you must first determine the underlying operating activities that drive them"-explain what those underlying activities are.

A company that has a cost structure in which its costs grow at a lesser rate than its sale enjoys ___________________________________.

The formula for forecasting inventory is ____________ /365 X.

As a firm progresses through the introduction life-cycle stage, what type of flexible account will it be more likely to use to balance the balance sheet?

When projecting ____________________, the analyst should consider economy-wide factors such as the expected rate of general price inflation in the economy.

As a firm progresses through the growth life-cycle stage, what type of flexible account will it be more likely to use to balance the balance sheet?

Financial statement forecasts rely on additivity within financial statements and articulation across financial statements. Given this information forecasts of future growth in inventory will most likely affect growth in:

In developing forecasts of expenses the analyst must take into consideration that expenses can be broken down into __ or components.

Financial ratio, percentage, and trend comparisons can be distorted by all of the following except:

Nichols and Wahlen's 2004 study showed that superior forecasting provides the potential to earn superior security returns. Nichols and Wahlen's findings indicate:

Overview of Financial Reporting, Financial Statement Analysis, and Valuation

Asset and Liability Valuation and Income Recognition

Income Flows Versus Cash Flows: Understanding the Statement of Cash Flows

Profitability Analysis

Risk Analysis

Financing Activities

Investing Activities

Operating Activities

Accounting Quality

Risk-Adjusted Expected Rates of Return and the Dividends Valuation Approach

Valuation: Cash-Flow Based Approaches

Valuation: Earnings-Based Approaches

Valuation: Market-Based Approaches

Filters

Exam 10: Forecasting Financial Statements

Given the information provided about Card Sharks, what is the company's 2013 projected cash balance?

Based on the following statement from the text-"to develop forecasts of individual operating assets and liabilities, you must first determine the underlying operating activities that drive them"-explain what those underlying activities are.

A company that has a cost structure in which its costs grow at a lesser rate than its sale enjoys ___________________________________.

The formula for forecasting inventory is ____________ /365 X.

As a firm progresses through the introduction life-cycle stage, what type of flexible account will it be more likely to use to balance the balance sheet?

When projecting ____________________, the analyst should consider economy-wide factors such as the expected rate of general price inflation in the economy.

As a firm progresses through the growth life-cycle stage, what type of flexible account will it be more likely to use to balance the balance sheet?

Financial statement forecasts rely on additivity within financial statements and articulation across financial statements. Given this information forecasts of future growth in inventory will most likely affect growth in:

In developing forecasts of expenses the analyst must take into consideration that expenses can be broken down into ________________________ or ______________________ components.

Financial ratio, percentage, and trend comparisons can be distorted by all of the following except:

Nichols and Wahlen's 2004 study showed that superior forecasting provides the potential to earn superior security returns. Nichols and Wahlen's findings indicate:

Overview of Financial Reporting, Financial Statement Analysis, and Valuation

Asset and Liability Valuation and Income Recognition

Income Flows Versus Cash Flows: Understanding the Statement of Cash Flows

Profitability Analysis

Risk Analysis

Financing Activities

Investing Activities

Operating Activities

Accounting Quality

Risk-Adjusted Expected Rates of Return and the Dividends Valuation Approach

Valuation: Cash-Flow Based Approaches

Valuation: Earnings-Based Approaches

Valuation: Market-Based Approaches

Filters

In developing forecasts of expenses the analyst must take into consideration that expenses can be broken down into __ or components.