Exam (elaborations)
FIN 586 Exam 1 HW & QUIZ Questions and Complete Solutions Graded A+
- Course
- Institution
FIN 586 Exam 1 HW & QUIZ Questions and Complete Solutions Graded A+
[Show more]
Content preview
FIN 586 Exam 1HW & QUIZ
Questions and
Complete Solutions
Graded A+
Denning [Date] [Course title]
, A firm engages in a new type of financial transaction that has a material effect on its earnings. An analyst
should most likely be suspicious of the new transaction if: - Answer: management has not explained its
business purpose
An accounting entry that updates the historical cost of an asset to current market levels is best
described as - Answer: a valuation adjustment
A furniture store acquires a set of chairs for $750 cash and sells them for $1000 cash. These transactions
are most likely to affect which accounts? - Answer: Purchase: Assets only
Sale: Assets, revenues, expenses, owners' equity
Which of the following is an analyst least likely to rely on as objective information to include in a
company analysis? - Answer: corporate press releases
Information about a company's financial position at a point in time is most likely found in the: - Answer:
balance sheet
The step in the financial statement analysis framework that includes making any appropriate
adjustments to the financial statements and calculating ratios is best described as: - Answer: processing
the data
Which of the following is least likely to be considered a role of financial statement analysis? - Answer:
Assessing the management skill of the company's executives
Which of the following statement analysis and reporting is least accurate? - Answer: Financial
statement analysis focuses on the way companies show their financial performance to investors by
preparing and presenting financial statements
Which of the following is a company least likely required to present according to International
Accounting Standard (IAS) No. 1? - Answer: Disclosures of material events
Two underlying assumptions of financial statements, according to the IASB conceptual framework, are: -
Answer: Going concern and accrual accounting
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