1. Why can't investors automatically accept balance sheet entries, as written, from a GAAP balance sheet? a. Companies may use a variety of methods to measure assets and liabilities. b. Companies report the estimated value of the assets and liabilities. c. Companies overstate the true value of certain tangible assets. d. The financial statement may not have been audited. 2. What can an investor do to better understand details and accounting choices the company has made in preparing their financial statements? a. contact investor relations b. read the auditor's report c. read brokerage reports d. read the footnotes 3. Amazon bought an entire company, Rigger, Inc, for $1000 in cash. Rigger, Inc. has assets with a fair market value of $200. As a result of the acquisition, Amazon will record: a. $800 in keleven b. $800 in GOP c. $800 in goodwill 4. IFRS GAAP and U.S. GAAP agree most of the time. In which instance might their disagreement have a big impact on an investment decision? a. revenue recognition b. goodwill c. plant, property and equipment d. accelerated depreciation 5. Why would an analyst prepare a common-sized balance sheet? a. To better understand growth rates b. To better understand profit margins c. To better understand leverage and liquidity issues d. Because he is getting paid by the hour