Chapter 1: Overview of Financial Statement Analysis Sample Multiple Choice Questions 1. Which of the following is likely to be the most informative source if you were interested in a company’s business plan or strategy? A) auditor’s letter B) management discussion and analysis C) proxy statement D) Footnotes Answer: B 2. Which of the following would not be considered a source of financing? A) notes receivable B) common stockholders’ equity C) retained earnings
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LOM 5300 Statistical Analysis for Business Decisions Multiple Choice Questions Chapter 1 1. In a questionnaire‚ respondents are asked to mark their gender as male or female. Gender is an example of the a. ordinal scale. b. nominal scale. c. ratio scale. d. interval scale. ANS: b 2. The scale of measurement that is used to rank order the observation for a variable is called the a. ratio scale. b. ordinal scale. c. nominal scale. d. interval scale. ANS: b 3. Some hotels ask their guests to
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considered cheating and will be punished: the student involved will be assigned zero points on this exam. Good luck! Student Name: ……………………………………… Grade: ……… / 20 ______________________________________________________________________________ Exercise 1: Pierce Company reported net income of $200‚000 for the current year. Depreciation recorded on buildings and equipment amounted to $80‚000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year
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otherwise indicated. Choose the most appropriate‚ accurate or correct answer. Answers on questionnaire will not be corrected. At the end of the exam return the questionnaire and answer sheet. DO NOT WRITE ON THE QUESTIONNAIRE. ONE POINT PER QUESTION 1. Which of the following best describes the justification for “Affirmative Action”? a) Women and visible minorities are victims of systemic discrimination which can be overcome by programs designed to increase diversity; b) Women and visible minorities
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Chapter 1 Overview of Financial Statement Analysis REVIEW Financial statement analysis is one important step in business analysis. Business analysis is the process of evaluating a company’s economic prospects and risks. This includes analyzing a company’s business environment‚ its strategies‚ and its financial position and performance. Business analysis is useful in a wide range of business decisions such as investing in equity or debt securities‚ extending credit through short or long term
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Chapter 2 Overview of the Financial System 2.1 Multiple Choice Questions 1) Every financial market has the following characteristic: A) It determines the level of interest rates. B) It allows common stock to be traded. C) It allows loans to be made. D) It channels funds from lenders-savers to borrowers-spenders. Answer: D 2) Financial markets have the basic function of A) bringing together people with funds to lend and people who want to borrow funds. B) assuring that the swings in the business
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CHAPTER 1: An Overview of Financial Markets and Institutions Answers to End-of-Chapter Questions 1. Does it make sense that the typical household is a surplus spending unit (SSU) while the typical business firm is a deficit spending unit (DSU)? Explain. The typical household begins as a SSU‚ has a deficit moments in the period when a home is purchased‚ autos are purchased‚ and tuition payments are made. For the most quarters (the typical flow of funds time unit) the household sector
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CHAPTER 1 Overview of Financial Management & Environment 1-1 Overview of Financial Management Role of financial management Forms of business organization Goals of the corporation Agency relationships 1-2 All Successful Firms Accomplish 2 Goals They identify‚ create‚ & deliver products or services that are highly valued This happens only if the firm provides more value than its competitors (in the form of either lower prices or better products) They sell at prices high enough to cover costs
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spent: 17 minutes‚ 54 seconds Score for selected take: 40% (4/10) Time spent on selected take: 1. Your answer: Multiple Choice 15-1 Cash inflows from operating activities come from a. payment for raw materials. b. gains on the sale of operating equipment. c. collection of sales revenues. d. issuing capital stock. e. issuing bonds. 2. Your answer: Multiple Choice 15-2 Cash outflows from operating activities come from a. collection of sales revenues. b
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MULTIPLE CHOICE 1. The owner’s equity in a business amounted to $56‚000 at the beginning of the year and $100‚000 at the end of the year. The owner had made no additional investments and had withdrawn $19‚000 during the year. The net income for the year amounted to a. $76‚000. b. $67‚000. c. $63‚000. d. $188‚000. ANS: C DIF: Medium OBJ: LO 6-1 MSC: AACSB Analytic 4. Changes in owner’s equity that result from investments or withdrawals of assets by the owner are included in the a. statement
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