财务报表分析与运用习题.docx
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财务报表分析与运用习题
MultipleChoicesExercisesforFSA.
1.Asageneralrule,revenueisnormallyrecognizedwhen
A.itismeasurable.
B.itismeasurableandreceived.
C.theearningsprocessiscompletedandcashreceiptisassured.
D.Themeasurementprocessiscomplete.
2.Ifacompanyrecognizesrevenueearlierthanjustifiedunderaccrualaccounting,whichofthefollowingbestdescribestheimpactonaccountsreceivableandinventory,respectively?
AccountsReceivableInventory
A.overstatedoversated
B.overstatedunderstated
C.understatedoverstated
D.understatedunderstated
3.ThefollowingareSamplesofunusualorinfrequentitemsEXCEPT:
A.Gainsorlossesfromdisposalofaportionofabusinesssegment.
B.Lossesresultingfromforeigngovernmentexpropriationofassets.
C.Provisionsforenvironmentalremediation.
D.Impairments,write-offs,write-downs,andrestructuringcosts.
4.Whenacompanydiscontinuesanddisposesofanoperation,theactionisconsidered:
A.anextraordinaryitem.
B.apriorperiodadjustment.
C.acumulativeeffectofachangeinanaccountingprinciple.
D.separatelyandshownnetoftaxesontheincomestatement.
5.Whichoneofthefollowingisachangeinanaccountingprinciples?
A.AchangefromFIFOtoLIFO.
B.Recordingapriorperiodadjustment.
C.Achangeintheestimatedservicelifeofmachinery.
D.Recordingdepreciationexpenseforthefirsttimeonmachinerypurchasedfiveyearsago.
6.AllofthefollowingaregeneralcategoriesofnonrecurringitemsEXCEPT:
A.unusualorinfrequentitems.
B.discontinuedoperations.
C.capitalizationofleases.
D.accountingchanges.
7.Afirmdiscoveredthatithadusedanincorrectaccountingprinciplesin1996.Onthefirm’s1997financialstatements,thisfirmshouldreporttheimpactofthiserroras:
A.anextraordinaryitem.
B.Anonrecurringitem.
C.Partofcostofgoodssold.
D.Apriorperiodadjustment.
8.Thecompletedcontractmethodshouldbeusedwhen
A.Thereisareasonableestimateofthecoststobeincurred.
B.Thereisacontractprice.
C.Collectibilityofthecontractpriceisuncertain.
D.Thereisareasonableestimateoftherevenues.
9.Usingthepercentage-of-completionmethodinaccountingforlong-termprojects,acompanycanincreasereportedearningsby:
A.acceleratingrecognitionofprojectexpenditures.
B.delayingrecognitionofprojectexpenditures.
C.switchingtocompletedcontractaccounting
D.overestimatingthetotalcostoftheproject.
10.Whichofthefollowingwouldbeanexampleofmanagementattemptingtomanipulateincome?
A.achangefromastraight-linetoanaccelerateddepreciationinordertoincreaseincome.
B.recognizinglossesinbadyearsandrecognizinggainsingoodyears.
C.additionallossesaretakeninbadyears
D.againfromthecondemnationofpropertybythecityisshowninincomefromcontinuingoperations,whilealossonthesaleofequipmentisshownafterincomefromcontinuingoperations.
11.Whenaccountingformerchandisingbusinesses,grossmarginequalsthedifferencebetween:
A.netsalesandcostofgoodssold.
B.netsalesandoperatingexpenses.
C.grosssalesandthesumofreturnsandallowances.
D.netsalesandthesumofcostofgoodssoldandoperatingexpenses.
11.Whichofthefollowingwouldnotcontributetothedifferencebetweengrosssalesandnetsales?
A.cashrefundsforreturnedproducts.
B.Discountsfromlistedpricesfordelayedshipping.
C.Allowanceoffsellingpricesfordefectiveproducts
D.Salesmadeoncreditratherthanforimmediatepayment.
12.Amongthefollowingitems,whichisaddedtonetincomeforcalculationofcashflowsfromoperatingactivitiesintheindirectmethod?
A.decreaseofinventory.
B.Increaseofprepaidexpenses.
C.Decreaseofaccountspayable.
D.Increaseofaccountsreceivable.
13.IntheStatementofCashFlows,whichofthefollowingbestdescribeswhetherinterestreceivedandinterestpaid,respectively,areclassifiedasoperatingorinvestingcashflow?
InterestReceivedInterestpaid
A.OperatingOperating
B.OperatingInvesting
C.InvestingOperating
D.InvestingInvesting
14.FASBistryingtodoprojectsrelatedtointernationalconvergencewith:
A.IASB
B.SEC
C.IOSCO
D.FederalReserveBoard
15.Whichofthefollowingisnotconsideredanasset?
A.Inventory
B.Trademarks
C.Retainedearnings.
D.Accountsreceivable.
16.Ifacompany’sendinginventoryisunderstatedby$3,000andbeginninginventoryisoverstatedby$5,000,thecompany’soperatingincomewillmostlikelybe:
A.overstatedby$2,000.
B.overstatedby$8,000
C.understatedby$2,000
D.understatedby$8,000
17.Depreciationdiffersfromothertypesofexpensesinthatdepreciation:
A.canbemeasuredmoreprecisely.
B.Doesnotrequireanimmediatecashoutlay.
C.Isnotdeductibleifitwouldresultinanetloss.
D.Canbeavoidedifthecompanyacquiresusedassets.
18.Whichofthefollowingaccuratelydescribestheeffectsofapurchaseoftreasurystockonacompany’sassetsandstockholders’equity?
AssetsStockholders’Equity
A.DecreasedDecreased
B.DecreasedUnchanged
C.UnchangedDecreased
D.UnchangedUnchanged
19.Acompany’sassetsandstockholders’equityaremostlikelytobereducedby:
A.stocksplits.
B.Cashdividends.
C.Stockdividends.
D.Reversestocksplits.
20.Netincomeequals:
A.sales-costofgoodssold.
B.Incomebeforeoperation-incometaxes.
C.Grossmargin-operationexpenses.
D.Incomefromoperations+/-otherrevenueandexpenses.
21.Ifthebeginninginventoryis$15,000,theendinginventoryis$18,000,andtheCOGSis$20,000.Sotheinventoryturnoveris:
A.100%
B.110%
C.121%
D.124%
22.acorporationwantstoincreaseitscurrentratiofromthepresentlevelofbeforeitendsitsfiscalyear.Theactionhavingthedesiredeffectis:
A.delayingthenextpayroll.
B.Writingdownimpairedassets.
C.Payingcurrentpayablesfromcash.
D.Sellingcurrentmarketablesecuritiesforcashattheirbookvalue.
23.Afirm’smostrecentquarterlystatementshowsacurrentratiogreaterthanone.Justbeforethecloseofthestatement,thecompanypaidlargeamountstocreditors.Thefeeofthepaymentswasto:
A.decreasenetworkingcapital.
B.Increasenetworkingcapital.
C.Increasethecurrentratio.
D.Decreasethecurrentratio.
24.AllofthefollowingratiosincludenetincomeintheircomputationEXCEPT:
A.assetturnover.
B.Profitmargin.
C.Returnonequity.
D.Returnonassets.
25.Whichoneofthefollowingwouldbestexplainasituationwheretheratioof“netincometototalequity〞forafirmishigherthantheindustryaverage,whiletheratioof“netincometototalassets〞islowerthantheindustryaverage?
A.netprofitmarginishigherthantheindustryaverage.
B.Debtratioishigherthantheindustryaverage
C.Assetturnoverishigherthantheindustryaverage
D.Equitymultipliermustbelowerthantheindustryaverage
26.Amajoruseofcommon-sizefinancialstatementsis:
A.valueacompany.
B.Compareacompanytotheaggregateeconomy.
C.Comparetwocompaniesofdifferentsize.
D.Noneoftheabove.
mon-sizefinancialstatementsexpressacompany’saccountsrelativeto:
A.theaggregateeconomy
B.thecompany’sownassetsandsales.
C.Thecompany’spastratios.
D.Noeoftheabove
28.Internalliquidityorsolvencyratiosindicatetheabilityofthefirmto:
A.meetfutureshorttermfinancialobligations.
B.Meetfuturelongtermfinancialobligations.
C.Settlecurrentdebtwithfixedassets.
D.Settlefutureshorttermdebtwithfixedassets.
29.Whichofthefollowingcompanieswouldhaveacompletecapitalstructure?
A.acompanywithcommonstockoutstandingandnon-convertiblepreferredstockoutstanding
B.acompanywithcommonstockoutstandingandstockoptionsoutstanding.
C.acompanywithcommonstockoutstandingandconvertiblebondsoutstanding
D.bothBandC.
30.Potentialcommonstockcanbedescribedas:
A.commonstockinform.
B.Notcommonstockinformbutwithvotingpowersofcommonstock.
C.Stockthathasthepotentialtobecommonstock.
D.Notcommonstockinformbutenablingholderstoobtaincommonstockuponexerciseorconversion.
31.IncalculatingtheweightedaveragenumberofsharesoutstandingforEPS,asubsequenteventthatistreatedasifitoccurredatthebeginningoftheearliestperiodisthe:
A.purchaseoftreasurystock.
B.Saleofconvertiblebonds
C.Declarationandissuanceofastocksplit
D.Saleofcommonstock.
32.Theweightedaveragenumberofcommonsharesoutstandingduringtheperiodshouldberetroactivelyrestatedfor:
A.stockdividends
B.stocksplits
C.bothAandB
D.neitherAnorB
33.WhencomparingendinginventoriesusingtheFIFOandLIFOmethodsofvaluation,fromabalancesheetperspective
A.inventoriesbasedonLIFOarepreferabletothosepresentedunderFIFOascarryingvaluesmostcloselyreflectcurrentcost.
B.inventoriesbasedonFIFOarepreferabletothosepresentedunderLIFOascarryingvaluesdonotreflectcurrentcost
C.inventoriesbasedonLIFOarepreferabletothosepresentedunderFIFOascarryingvaluesdonotreflectcurrentcost
D.inventoriesbasedonFIFOarepreferabletothosepresentedunderLIFOascarryingvaluesmostcloselyreflectcurrentcost
34.Whichoneofthefollowingstatementsaboutstraight-linedepreciationisTRUE?
Straight-linedepreciation:
A.resultsinadecreasingreturnonequityovertheasset’slife.
B.Introducesabuilt-inincreaseinreturnoninvestmentovertheasset’slife.
C.Recognizestheincreasingrateofobsolescenceofanassetwiththepassageoftime.
D.Resultsinhighertotaltaxpaymentsoverthelifeofanassetthanaccelerateddepreciation.
35.Amachineispurchasedfor$3,000,andhasanestimatedusefullifeoffiveyears.Itssalvagevalueise