Which financial statement presents the results of operations?
Question options:
Balance sheet
Statement of financial position
Income statement
Statement of cash flows
Question 2
5 / 5 points
Which report is NOT required to be filed by public companies to the SEC?
Question options:
Annual reports (Form 10-K)
Financial Reporting Rulings
A prospectus for any new security offering
Quarterly reports (From 10-Q)
Question 3
5 / 5 points
Why does the management discussion and analysis help the analyst?
Question options:
It contains information that cannot be found in the financial data.
It provides predictions of all future financial statement numbers.
It outlines the accounting choices made by the firm.
It explains the market valuation of the firm’s stock.
Question 4
5 / 5 points
What information can be found on a balance sheet?
Question options:
Information to support that assets equal liabilities
The profit or loss for the accounting period
The reasons for changes in the cash account
The financial position on a particular date; i.e. assets, liabilities and shareholders’ equity
Question 5
5 / 5 points
How are revenues and expenses recognized under the accrual basis of accounting?
Question options:
Revenues are recognized when cash is received and expenses are recognized when cash is paid.
Revenues and expenses are recognized equally over a twelve month period.
Revenues and expenses are recognized based on the choices of management.
Revenues are recognized in the accounting period when the sale is made and expenses are recognized in the period in which they relate to the sale of the product.