财务报表分析期中考试试题.docx

1、财务报表分析期中考试试题Students Random Number : _MSc IN APPLIED FINANCEFinancial Statements Analysis INSTRUCTIONS TO STUDENTS1 The time allowed for this examination paper is 2.5 hours.2 This examination paper contains thirty-four (34) multiple-choice questions and three analytic questions. You are REQUIRED to

2、answer ALL questions. No marks will be deducted for wrong answers.3 Please select the most suitable answer to each question by shading your answer with pencil only in the answer sheet provided. 4 This is a closed-book examination. You are allowed to use a financial calculator.5 There are ten (10) pr

3、inted pages including this instruction sheet. 6 You are required to return the full set of question paper at the end of the examination. Please write your name on the top right hand corner of this instruction sheet. 一、Single Choices （1.5 points for each question, 51 points in total）1. As a general r

4、ule, revenue is normally recognized whenA. It is measurableB. It is measurable and received,C. The measurement process is complete.D. The earnings process is complete and cash receipt is assured.2. If a company recognizes revenue earlier than justified under accrual accounting, which of the followin

5、g best describes the impact on accounts receivable and equity, respectively? Accounts Receivable Equity A. Overstated OverstatedB. Overstated UnderstatedC. Understated OverstatedD. Understated Understated3. If a company uses the completed contract method rather than the percentage-of-completion meth

6、od for a three-year contract, the net income and cash from operations the company recognizes in the first year are:A. will be greater and higher respectively, if the completed-contract method is usedB. will be lower and the same respectively, if the completed-contract method is usedC. will be the sa

7、me for both methodsD. will be lower and lower respectively, if the completed-contract method is used4. For a material item to be classified as an extraordinary item on the income statement, the item must be:A. estimated and probableB. unusual in nature and infrequent in occurrenceC. probable and inf

8、requent in natureD. current and unusual in frequency5. In the statement of Cash Flows, which of the following best describes whether interest paid and dividends paid, respectively, are classified as operating or investing cash flows?Dividends paid Interest paidA. Operating OperatingB. Operating Fina

9、ncingC. Financing OperatingD. Financing Financing 6. Among the following items, which is added to net income for calculation of cash flows from operating activities in the indirect method?A. Increase of inventoryB. Decrease of prepaid expensesC. Decrease of dividend paidD. Increase of accounts recei

10、vable7. The following information was available for the B Inc. for 2006:Net income132Exchanged equity for debt34Increase in inventory42Increase in accounts payable30Retirement of common stock45Depreciation expense25What was B net cash flow from operations?A. 229 B. 145 C. 169 D. 1848. Which of the f

11、ollowing is NOT reported as a noncash transaction on a firms statement of cash flows?A. Exchanged equipment with a book value of $1.7 million for equipment valued at $2.1 million.B. Purchase of treasury stockC. Issued 5,000 shares of preferred stock for land with a fair value of $4.8 millionD. conve

12、rsion of bonds payable into common stock9. A companys current ratio is 0.8. If the company uses cash to retire notes payable that are due within one year, would this transaction most likely Increase or Decrease the current ration and asset turnover ratio, respectively? Current ratio Asset Turnover R

13、atioA. Increase DecreaseB. Increase IncreaseC. Decrease IncreaseD. Decrease Decrease10. The cash conversion cycle measures:A. the number of days cash is tied up in working capitalB. the average collection period of accouts receivableC. the time to convert cash into profitD. none of above11. Common-s

14、ize income statements express a companys accounts relatively to:A. the aggregate economyB. the companys own assets C. the companys salesD. the companys cash collections from customers12. During periods of sustained rising prices, compared with LIFO method, how will the FIFO method affect a companys

15、COGS, net income and income tax liability, respectively?A. increase, increase, increaseB. increase, increase, decreaseC. decrease, decrease, increaseD. decrease, increase, increase13. Selected financial data from Krandall, Inc.s financial statements was as follows (in $): Inventory at Jan. 1374,000L

16、IFO Reserve at Jan. 123,000Inventory at Dec. 31348,400LIFO Reserve at Dec. 3125,000COGS1,900,000Net income 170,000Krandall uses the last in, first out (LIFO) inventory cost flow assumption. The tax rate is 35 percent. What is the Inventory turnover ratio if Krandall used first in, first out (FIFO) i

17、nstead of LIFO ? A. 4.927 B. 5.260 C. 4.904 D. 5.08414. The same conditions as in Question 13. What is Inventory turnover ratio under the current cost method?A. 4.927 B. 5.260 C. 5.255 D. 4.93215. The same conditions as in Question 13. If the ROE for Krandall is 4.6%, What is ROE if Krandall used fi

18、rst in, first out (FIFO) instead of LIFO ? A. 4.616% B. 4.581% C. 4.635% D. 4.932%16. During periods of declining prices and stable inventory levels:A. LIFO COGS weighted average COGSFIFO COGS B. LIFO COGS weighted average COGSFIFO COGS C. LIFO COGS=weighted average COGS=FIFO COGSD. weighted average

19、 COGS FIFO COGS17. In a period of rising prices, LIFO liquidation results in: A. higher earnings. B. increase in accounts receivable. C increase in inventory.D. lower earnings.18. JME purchased 400 units of inventory that cost $6.00 each. Later the firm purchased an additional 500 units that cost $7

20、.50 each. JME sold 700 units of inventory for $10.5 each. If JME uses a first in, first out (FIFO) cost flow method, the amount of gross profit appearing on the income statement is: A. $3,600. B. $4,650. C. $7,350. D. $2,700. 19. Compared with firms that expense costs, firms that capitalize costs ca

21、n be expected to report: A. higher asset levels and higher equity levels in the early years of the assets life. B. lower asset levels and higher equity levels in the early years of the assets life. C. higher asset levels and lower equity levels in the early years of the assets life. D. lower asset l

22、evels and lower equity levels in the early years of the assets life. 20. Compared to firms that expense costs, firms that capitalize expenses will have: A. lower income variability. B. lower cash flow from operations. C. higher leverage ratios. D. lower current net income. 21. The capitalization of

23、interest costs during construction:A. decreases net income during the construction phaseB. increases future net incomeC. decrease future depreciation expenseD. increases future depreciation expense 22. Software development costs incurred before and after a product is proven economically feasible are

24、:A. expensed both before and afterB. expensed before and capitalized after C. capitalized both before and afterD. capitalized before and expensed after23. Train, Inc.s cash flow from operations (CFO) in 2004 was $28 million. Train paid $16 million cash to acquire a franchise at the beginning of 2004

25、 that was expensed in 2004. If Train had selected to amortize the cost of the franchise over eight years, 2004 cash flow from operations (CFO) would have been:A. $44 million. B. $42 million. C. $14 million. D. unchanged.24. The same conditions as in Question. Assuming that pretax income of Train, In

26、c. in 2004 is 20 million. If Train had selected to amortize the cost of the franchise over eight years, 2004 pretax income would have been: A. $24million. B. $36million. C. $34 million. D. unchanged.25. Selected financial data from Diso, Inc.s income statement for 2007 was as follows (in $):Interest

27、 expense $ 802Capitalized interest 282 Pretax income 3578 Amortization of capitalized interest 94 Net income 1860Diso, Inc. capitalizes interest expense incurred in its self-constructed assets. The tax rate is 35 percent. If Diso, Inc. had chosen to expense interest costs incurred in its self-constr

28、ucted assets, the net income would have been: A. 1738 B. 2048 C. 1860 D. 179426. The same conditions as in Question 25. What is interest coverage ratio If Diso, Inc. had chosen to expense interest costs incurred in its self-constructed assets?A. 5.46 B. 4.13 C. 3.30 D. 4.2627. Assuming assets are de

29、preciated, the recognition of assets price increase (asset revaluation) would result in: A. higher asset turnover B. higher future depreciation expense C. higher cash flow from operations D. higher future ROA28. With the exception of legal costs, generally accepted accounting principles require that

30、 cost incurred in:Developing Patent Purchased PatentsA. expensed expensedB. capitalized capitalizedC. capitalized expensedD. expensed Capitalized29. The RR Corporation had cash flow from operations of $40million. RR purchased $10 million in equipment and sold $6 million of equipment during the perio

31、d. Cash flows from financing were -$4million. What is RRs free cash flow for the period? A. $46million. B.$30million C. $36million D.$44million30. The RR Corporation had cash flow from operations of $40million. RR purchased $10 million in equipment and sold $6 million of equipment during the period. Cash flows from financing were -$4million. What is RRs free cash flow for the period? A. $36. B.$30. C. $46. D.$44 31. For the year ended December 31, 2007, Cobra Company reported the following financial information: Revenue $50,000 Cost of