7

Rodrigue's SA reported the following financial statement data for the year ended 2007

Average net operating assets

39,000

Net income

14,000

Cash flow from operating activity

17,300

cash flow from investing activity

-12,400

A. -8%

B. -19.1%

C. 23.3%

8

Cash collected from customers is least likely to differ from sales due to change in:

Inventory

Deffered revenue

Accounts receivable

9

reported revenue is most likely to have been reduced by management's discretionary estimate of:

A. warranty provisions

B. inventory damage and theft

C. interest to be earned on credit sales

10

Zimt AG reports 2007 revenue of L14.3 billion. During 2007, its accounts receivable rose by L0.7 billion, accounts payable

increased by L1.1 billion, and unearned revenue increased by L0.5 billion. Its cash collections from custormers in 2007 were

closest to:

A. L14.1billion

B. L14.58 billion

C. L15.2 billion

11

Cinamon Corp began the year with $12 million in accounts receivable and $31 million in deferred revenue. It ended the year with $15

million in accounts receivable and $27 million included in total revenue wre closest to:

A. $1 million

B. $7 million

C. $12 million

12

Which of the following is least liklely to be likely to be a warning sign of low -qualify revenue?

A. large decrease in deferred revenue

B. large increase in accounts receivable

C. A large increase in the allowance for doubtful accounts

13

An unexpectedly large reduction in the unearning revenue account is most likely a sign that the company:

A. accelerated revenue recognition

B. Overstated revenue in prior periods

C. Adopted more conservative revenue recognition practices

14

Canelle SA reported 2007 revenue of L137 million. In accounts receivable balance began the year at L11 million and

ended the year at L16 million. At year end, L2 million of receivables had been securitized. Canelle's cash collections

from customers(in L millions) in 2007 were closest to:

A. L130

B. L132

C. L134