A preferred shareholder can force a company into bankruptcy if the company does not pay the preferred dividend on a timely basis. A: True B: False

Of the four primary business activities (planning, financing, investing and operating), why do planning activities not result in transactions that are reflected in a company's financial statements?

	A.	Planning activities generally result in forward looking analyses such as budgeting and long range planning which do not lead to current transactions that must be journalized and reflected in financial statements.
	B.	FASB chose not to reflect planning activites in the Statement of Cash Flows.
	C.	Since transactons resulting from planning activities are deferred, they need not be reflected until the trial balance is adjusted for accruals and the allocation of deferrals.
	D.	Planning activities do result in transactions that are reflected in financial statements.

In the weighting of value indications resulting from the application of the Discounted Cash Flow (DCF) method and the guideline company (GCM) method to a subject company, which set of circumstances best describes a situation where a greater weight might be placed on the results of the DCF method?

	A.	If the analyst has more confidence in the forecast and less confidence in the selection of peer company comparables, the value indication resulting from the DCF method will likely receive a greater weight.
	B.	The Income Approach (DCF) and the Market Approach (GCM) are always equally weighted.
	C.	The DCF method is always weighted more since it is a more precise method.
	D.	If all the assumptions used in the DCF method can be verified, then the DCF method value indication will receive a greater weight than the value indication resulting from the Guideline Company Method.