上海对外贸易学院财管中加财务报表分析期中考试(答案见其他word)

Marks:

TRUE/FALSE(1 point for each question, total 20 points)

(Note: Put your answer into the following table correspondingly.)

( ) (1) All of the information needed by professional analysts to give a complete picture of a company is found in the published financial statements.

( ) (2) Suppliers monitor the financial statements of their customers to protect collection of their accounts receivable.

( ) (3) Timeliness is a qualitative characteristic of accounting information that indicates that information should be provided to users before statutory deadlines.

( ) (4) Generally accepted accounting principles are set by the Securities and Exchange Commission.

( ) (5) The ability to raise additional cash by selling assets, issuing stock, or borrowing more is financial flexibility.

( ) (6) To measure earnings under accrual accounting, revenues are recognized when they are received.

( ) (7) The matching principle requires that expenses be recognized in the same period in which the revenues are recognized that were produced by the expenses.

( ) (8) Basic earnings per share is computed by dividing net income by the weighted average number of common shares of stock outstanding.

( ) (9) Liquidity refers to the ability of a company to generate sufficient cash flows to maintain its productive capacity and still meet interest and principal payments on long-term debt.

( ) (10) The change in cash during a period is equal to the net income for the period. ( ) (11) Depreciation is added back to net income to determine cash from operating activities under the indirect method.

( ) (12) Current assets are listed on the balance sheet in descending order of liquidity. ( ) (13) The quick ratio measures the most immediate liquidity of a company.

( ) (14) Activity ratios describe the profitability of a company.

( ) (15) Financial leverage is beneficial when the company earns more than the incremental after-tax cost of debt.

( ) (16) Managers’ ability to freely choose among several alternative reporting methods makes it more difficult for a financial analyst to evaluate the activities and condition of a company.

( ) (17) Asset turnover is defined as sales divided by total assets.

( ) (18) Beginning inventory plus inventory purchases equals cost of goods sold.

( ) (19) Dividends paid by a corporation represent a distribution of earnings to stockholders.

( ) (20) The direct approach and the indirect approach are two alternative methods of presenting cash flows from investing activities.

MULTIPLE CHOICES(1.5 points for each question, total 30 points)

(Note: Put your answer into the following table correspondingly.)

Which of the following is included in other comprehensive income?

A.Unrealized holding gains and losses on trading securities.

B.Unrealized holding gains and losses that result from a debt security being transferred into the

held-to-maturity category from the available-for-sale category.

C.Foreign currency translation adjustments.

D.The difference between the accumulated benefit obligation and the fair value of pension

plan assets.

( ) (2) A decrease in net assets arising from peripheral or incidental transactions is called a(n)

A.capital expenditure.

B.cost.

C.loss.

D.expense.

( ) (3) According to generally accepted accounting principles, revenue should be recognized at the earliest time that

A.the “critical event” has taken place and the proceeds are collected.

B.the “critical event” has taken place and the amount of revenue collected is reasonably

assured.