1. A Company regularly misses their earnings forecast and overperforms. Analysts perceive the estimates as: a. Reliable as they regularly outperform b. Unreliable because they consistently miss their estimates C. Are given a premium because they regularly beat estimates d. Reliable because they beat out their competitors 2. What information can be gained from sources such as Industry Norms and Key Business Ratios, Annual Statement Studies, Analyst's Handbook, and Industry Surveys? a. The general economic condition b. Forecasts of earnings C. Elaboration's of financial statement disclosures d. A company's relative position within its industry. 3. How is it possible for a firm to be profitable and still go bankrupt? a. Earnings have increased more rapidly than sales b. The firm has positive net income but has failed to generate cash from operations. C. Net income has been adjusted for inflation d. Sales have not improved even though credit policies have been eased 4. Which of the following could lead to cash flow problems? a. Obsolete inventory, accounts receivable of inferior quality, easing of credit by suppliers b. Slow-moving inventory, accounts receivable of inferior quality, tightening of credit by suppliers C. Obsolete inventory, increasing notes payable, easing of credit by suppliers d. Obsolete inventory, improved quality of accounts receivable, easing of credit by suppliers. 5. Company estimates can be found in many of the financial statement categories. Estimates include: a. Loan loss reserves b. Discontinued operations C. Interest Expense d. All of the Above e. None of the Above