Exam (elaborations)
FIN 686 Exam I Questions and Complete Solutions Graded A+
- Course
- Institution
FIN 686 Exam I Questions and Complete Solutions Graded A+
[Show more]
Content preview
FIN 686 Exam IQuestions and
Complete Solutions
Graded A+
Denning [Date] [Course title]
, Which of the following is least likely to be considered a role of financial statement analysis?
1. Assessing the management skill of the company's executives.
2. To make economic decisions.
3. Determining whether to invest in the company's securities. - Answer: Assessing the management
skill of the company's executives.
An analyst who wants to examine a firm's financing transactions during the most recent period is most
likely to evaluate the firm's statement of - Answer: Cash flows
Reading the footnotes to a company's financial statements and the Management Discussion and
Analysis is least likely to help an analyst determine
1. how well the financial statements reflect the company's true performance.
2. the various accruals, adjustments and assumptions that went into the financial statements.
3. the detailed information that underlies the company's accounting system. - Answer: the detailed
information that underlies the company's accounting system.
Alpha company reported the following financial statement information
December 31, 2006:
Assets $70,000
Liabilities $45,000
December 31, 2007:
Assets $82,000
Liabilities $55,000
During 2007:
Stockholder investments $3,000
Net income ?
Dividends $6,000
Calculate Alpha's net income for the year ended December 31, 2007 and the change in stockholders'
equity for the year ended December 31, 2007. - Answer: $5,000 and $2,000 increase
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller YourExamplug. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78600 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now