Accounting Financial statements analysis Question 1. Which of these is not an attribute of an economic moat? A.Low-cost producer. B.Technological expertise. C.Network effect. D.Switching costs. Question 2.Which of the following represents a logical observation? A.Management teams should focus primarily on revenue growth, since revenue growth will always result in increased net income. B.An increase in revenues will typically be accompanied by an increase in cost of goods sold. The goal is to have the revenue increase outpace the increase in cost of goods sold. C.An increase in net income is typically the result of increases in revenues accompanied by greater increases in cost of goods sold and operating expenses. D.Managements' goal should be to develop strategies focused on improving nonoperating returns instead of strategies focused on improving operating income. Question 3.Which of the following is false? A.The keystroke to show a formula is F2 B.The keystroke for fill right is CTRL +R C.The keystroke for create a comment is ALT +R+D D.The keystroke for copy is CTRL+C Question 4.What is the keyboard shortcut needed to split screens and jump from pane to pane? A.ALT + W+S F4 B.ALT + W+S F6 C.ALT + W + F + F F6 D.ALT +W+S CTRL Tab Question 5.The statement of cash flows segregates cash inflows and outflows by: A.Operating and financing activities B.Operating and investing activities C.Financing and investing activities D.Operating, investing and financing activities Question 6.Best practices and "rules of thumb" for spreadsheet use include all but one of the following: A.Convert to negative using the calculation *-1 for all sign changes. B.Place assumptions together on one page. C.Hide rows and columns instead of grouping. D.Always link to the initial source data. Question 7. Which of the following is false? A.The keystroke for grouping columns or rows is ALT +A+G+G B.The keystroke for print is CTRL+P C.The keystroke for formatting cells is CTRL +1 D.The keystroke for undo is CTRL + Y Question 8.Best practices for formatting financial statements include all but one of the following: A.Using CTRL B to bold major line items and their amounts. B.Placing $ signs by all dollar amounts. C.Using CTRL 1 to center across account titles. D.Using ALT +H+6 to indent line items. Question 9.Which of the following assets would be classified as current assets on the balance sheet? A.Cash equivalents, inventory, prepaid expenses. B.Cash, accounts payable, deferred income taxes. C.Inventory, goodwill, deferred revenue. D.Accounts receivable; prepaid expenses; property, plant & equipment. Question 10. Which of the following is false with respect to the Statement of Cash Flows? A.Cash outflows from investing activities typically revolve around spending for capex and the payment of debt. B.Share repurchases and dividend payments will create cash outflows for financing activities. C.Financing activities include fund flows related to stock issuances, debt, share repurchases, and dividend payments. D.Investing activities include expenditures for property, plant and equipment (capex), expenditures for intangible assets, and cash flows from security investment activities. Question 11.The changes that occurred during the current period for retained earnings and treasury Paragraph Styles Question 11.The changes that occurred during the current period for retained earnings and treasury stock will be found in the: A.Statement of Shareholders' Equity B.Income Statement C.Balance Sheet D.Statement of Cash Flows Question 12. What does a balance sheet summarize? A.Financial position at a point in time. B.Profit or loss at a point in time. C.Financing and investing activities for a period. D.Operating results for a period. Question 13.Which of the following is considered the least important item from a Form 10-K for analyzing a business like APPLE? A.Item 6 - Selected Financial Data B.Item 1 - Business C.Item 4 - Mine Safety Disclosures D.Item 1A - Risk Factors E.Item 7 - Management's Discussion & Analysis F.ltem 8 - Financial Statements & Supplementary Data Question 14. Which of the following does not factor in to the calculation of cash flows from operating activities under the indirect method? A. The Bad debt expense associated with the allowance for doubtful accounts. Paragraph Styles Question 14. Which of the following does not factor in to the calculation of cash flows from operating activities under the indirect method? A.The Bad debt expense associated with the allowance for doubtful accounts. B.The proceeds from issuing additional common stock. C.The amortization expense associated with an intangible asset. D.A gain on the sale of a fixed asset. E.A decrease in the current liability income taxes payable. Question 15.What formula can be entered into cell B3 and copied into cells C3:F3 in order to display the trend for revenue growth over time? A.=B2/$B2*100 B:=B2/B$2*100 C:=$B2/B2*100 D.=B2/B2*100 A B C D E F 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 2 Revenues $ 1,000 $ 1,500 $ 2,500 $ 4,500 $ 5,400 3 Revenues I 150 250 450 540 Question 16.What is a common-size balance sheet? A.A statement that expresses each account on the balance sheet as a percentage of total assets. B.A statement that expresses each asset account on the balance sheet as a percentage of total assets and each liability account as a percentage of total liabilities. C.A statement that is common to an industry. D.A statement that expresses each account on the balance sheet as a percentage of net income. Question 17.What combination of shortcuts do you need to go from "Before" to "After" as shown below? Question 17.What combination of shortcuts do you need to go from "Before" to "After" as shown below? A.CTRL + X, then CTRL + V B.CTRL + X, then CTRL + Z C.CTRL + C, then CTRL+X D. CTRL + C, then CTRL + V Before: A B $ 200.00 C A B $200.00 Question 18. Which of the following will appear as a positive amount on a statement of cash flows that was prepared using the indirect method? A. A decrease in accounts payables B. Depreciation expense C. An increase in accounts receivable D. An increase in inventories Question 19.Balance Sheet - which of the following is incorrect? A. We can discuss the balance sheet items in terms of whether they are operating or nonoperating. Question 19.Balance Sheet - which of the following is incorrect? A. We can discuss the balance sheet items in terms of whether they are operating or nonoperating. B. A classified balance sheet highlights the differences between operating and nonoperating categories of assets and liabilities. C.A classified balance sheet highlights current assets, long-term assets, current liabilities, long-term liabilities and owners' equity. D. The balance sheet represents the accounting equation of assets = liabilities + owners' equity. 20.Which of the following is not part of shareholders' equity? A. Common stock B. Equity method investment in other companies C. Accumulated comprehensive income D. Retained earning E. Treasury stock 21. Which of the following is true? A.Use footnotes and comments to explain your work when needed. B.Hiding rows is better than grouping. C.Always merge columns instead of "centering across selection". D.Daisy chaining is an efficient way to link cells. 22.A 10-Q financial filing has all the following characteristics EXCEPT: A.Issued 4 times a year. B. Provides the most up-to-date financial information for the firm. 25.The required financial statements for public traded companies include: Income Statement Statement of Comprehensive Income Balance Sheet Statement of Cash Flows Statement of Shareholders' Equity Statement of Retained Earnings A.125,6 B.13.4,5,6 C.1,2,3,4,5 D.1,3,4,5 26. If you want to copy and paste a formula, but not the formats, to another cell which of the following steps would work? A.CTRL + C, move to cell you want to copy to, CTRL + ALT +V E, ENTER B.CTRL + C, move to cell you want to copy to, CTRL + V C.CTRL + C, move to cell you want to copy to, CTRL + ALT + V V, ENTER D.CTRL + C, move to cell you want to copy to, ENTER 27. Which of the following is not true? A.Private companies intending to go public in an IPO file form S-1. B.Publicly traded companies file quarterly results with the SEC in a form called 10-Q. C.Publicly traded companies file the announcement of a materially significant in a form called 6-K. D.Publicly traded companies file annual results with the SEC in a form called 10-K. Paldyldprl SLVIES 28. Which of the following is NOT a part of Porter's Five Forces? A.Supplier Power B.Buyer Power C.Switching Costs D.Barriers to Entry 29. Which of the following metrics will not be part of a firm's historical income statements as presented in Form 10-K? A.Operating Profit B.Gross Profit C.SG&A D.EBITDA 30.Prices for year-end AAPL stock are listed below. Write the Excel formula that will show average stock price in cell B7. A.=SUM(B2:B6)/6 B.AVERAGE(B2:B6) C=SUM(B2-B6)/6 D.=AVG(B2-B6) E:=AVG(B2:B6) F:=AVERAGE(B2-B6) 31.If you want to find out if the CEO is selling his or her stock or buying more, you should search which public filings? A Date Stock Price 31-Dec-13 $ 68.95 31-Dec-14 $ 104.06 31-Dec-15 $ 100.93 31-Dec-16 $ 113.52 31-Dec-17 $ 168.54 Average 3 4 5 6 7 A.10-Q B.Form 4 C.10-K D.8-K 32.Which of the following statements is incorrect? A.Dividends represent operating expenses which are frequently paid on a quarterly basis. B.A U.S. corporation's revenues are reported on the top line of its income statement, while its earnings are reported on the bottom line (or near the bottom) of the income statement. 32.Which of the following statements is incorrect? A.Dividends represent operating expenses which are frequently paid on a quarterly basis. B.A U.S. corporation's revenues are reported on the top line of its income statement, while its earnings are reported on the bottom line (or near the bottom) of the income statement. C.Capital expenditures or capex are the amounts spent for tangible assets that will be used for more than one year in the operations of a business. Capital expenditures can be thought of as the amounts spent to acquire or improve a company's fixed assets or property, plant & equipment. D.Earnings is the net amount earned after deducting the cost of goods sold, expenses and losses. It is often presented as net earnings or net income. 33. Which is true when reading financial statements? A.Balance Sheet amounts represent asset, liability and owner equity changes for the reporting period. B.Statement of Shareholders' Equity amounts represent cash balances at the end of the reporting period. C.Statement of Cash Flows amounts represent cash inflows and outflows for the current reporting period. D.Income Statement amounts represent revenue and expense changes from the prior period. 34.Why is the amount for operating income important? A.Operating income provides a basis for assessing the wealth of the firm. B.Operating income includes all operating revenues and expenses, as well as, interest and taxes related to operations. C.This figure provides a basis for assessing the success of a company apart from its financing and investing activities and separate from its tax status. Thic ie the ficuro nended for calculating incomo taun- JE - Normal No Spac... Heading Heading 2 Title Subtitle Subtle Em... Emphasis The Paragraph Styles A.Balance Sheet amounts represent asset, liability and owner equity changes for the reporting period. B.Statement of Shareholders' Equity amounts represent cash balances at the end of the reporting period. C.Statement of Cash Flows amounts represent cash inflows and outflows for the current reporting period. D.Income Statement amounts represent revenue and expense changes from the prior period. 34.Why is the amount for operating income important? A.Operating income provides a basis for assessing the wealth of the firm. B.Operating income includes all operating revenues and expenses, as well as, interest and taxes related to operations. C.This figure provides a basis for assessing the success of a company apart from its financing and investing activities and separate from its tax status. D.This is the figure needed for calculating income taxes. Question 35 What formula can be entered into cell G3 to display the CAGR for revenue for the periods displayed? A.=Rate(G2,0,B3,F3,0) B.Rate(G2,0,B3,-F3,0) C:ECAGR(B3:F3) D: Average(B3:F3) B . C D E F CAGR 4 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 3 Revenues $ 1,000 $ 1,500 $ 2,500 $ 4,500 $ 5,400 Accounting Financial statements analysis Question 1. Which of these is not an attribute of an economic moat? A.Low-cost producer. B.Technological expertise. C.Network effect. D.Switching costs. Question 2.Which of the following represents a logical observation? A.Management teams should focus primarily on revenue growth, since revenue growth will always result in increased net income. B.An increase in revenues will typically be accompanied by an increase in cost of goods sold. The goal is to have the revenue increase outpace the increase in cost of goods sold. C.An increase in net income is typically the result of increases in revenues accompanied by greater increases in cost of goods sold and operating expenses. D.Managements' goal should be to develop strategies focused on improving nonoperating returns instead of strategies focused on improving operating income. Question 3.Which of the following is false? A.The keystroke to show a formula is F2 B.The keystroke for fill right is CTRL +R C.The keystroke for create a comment is ALT +R+D D.The keystroke for copy is CTRL+C Question 4.What is the keyboard shortcut needed to split screens and jump from pane to pane? A.ALT + W+S F4 B.ALT + W+S F6 C.ALT + W + F + F F6 D.ALT +W+S CTRL Tab Question 5.The statement of cash flows segregates cash inflows and outflows by: A.Operating and financing activities B.Operating and investing activities C.Financing and investing activities D.Operating, investing and financing activities Question 6.Best practices and "rules of thumb" for spreadsheet use include all but one of the following: A.Convert to negative using the calculation *-1 for all sign changes. B.Place assumptions together on one page. C.Hide rows and columns instead of grouping. D.Always link to the initial source data. Question 7. Which of the following is false? A.The keystroke for grouping columns or rows is ALT +A+G+G B.The keystroke for print is CTRL+P C.The keystroke for formatting cells is CTRL +1 D.The keystroke for undo is CTRL + Y Question 8.Best practices for formatting financial statements include all but one of the following: A.Using CTRL B to bold major line items and their amounts. B.Placing $ signs by all dollar amounts. C.Using CTRL 1 to center across account titles. D.Using ALT +H+6 to indent line items. Question 9.Which of the following assets would be classified as current assets on the balance sheet? A.Cash equivalents, inventory, prepaid expenses. B.Cash, accounts payable, deferred income taxes. C.Inventory, goodwill, deferred revenue. D.Accounts receivable; prepaid expenses; property, plant & equipment. Question 10. Which of the following is false with respect to the Statement of Cash Flows? A.Cash outflows from investing activities typically revolve around spending for capex and the payment of debt. B.Share repurchases and dividend payments will create cash outflows for financing activities. C.Financing activities include fund flows related to stock issuances, debt, share repurchases, and dividend payments. D.Investing activities include expenditures for property, plant and equipment (capex), expenditures for intangible assets, and cash flows from security investment activities. Question 11.The changes that occurred during the current period for retained earnings and treasury Paragraph Styles Question 11.The changes that occurred during the current period for retained earnings and treasury stock will be found in the: A.Statement of Shareholders' Equity B.Income Statement C.Balance Sheet D.Statement of Cash Flows Question 12. What does a balance sheet summarize? A.Financial position at a point in time. B.Profit or loss at a point in time. C.Financing and investing activities for a period. D.Operating results for a period. Question 13.Which of the following is considered the least important item from a Form 10-K for analyzing a business like APPLE? A.Item 6 - Selected Financial Data B.Item 1 - Business C.Item 4 - Mine Safety Disclosures D.Item 1A - Risk Factors E.Item 7 - Management's Discussion & Analysis F.ltem 8 - Financial Statements & Supplementary Data Question 14. Which of the following does not factor in to the calculation of cash flows from operating activities under the indirect method? A. The Bad debt expense associated with the allowance for doubtful accounts. Paragraph Styles Question 14. Which of the following does not factor in to the calculation of cash flows from operating activities under the indirect method? A.The Bad debt expense associated with the allowance for doubtful accounts. B.The proceeds from issuing additional common stock. C.The amortization expense associated with an intangible asset. D.A gain on the sale of a fixed asset. E.A decrease in the current liability income taxes payable. Question 15.What formula can be entered into cell B3 and copied into cells C3:F3 in order to display the trend for revenue growth over time? A.=B2/$B2*100 B:=B2/B$2*100 C:=$B2/B2*100 D.=B2/B2*100 A B C D E F 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 2 Revenues $ 1,000 $ 1,500 $ 2,500 $ 4,500 $ 5,400 3 Revenues I 150 250 450 540 Question 16.What is a common-size balance sheet? A.A statement that expresses each account on the balance sheet as a percentage of total assets. B.A statement that expresses each asset account on the balance sheet as a percentage of total assets and each liability account as a percentage of total liabilities. C.A statement that is common to an industry. D.A statement that expresses each account on the balance sheet as a percentage of net income. Question 17.What combination of shortcuts do you need to go from "Before" to "After" as shown below? Question 17.What combination of shortcuts do you need to go from "Before" to "After" as shown below? A.CTRL + X, then CTRL + V B.CTRL + X, then CTRL + Z C.CTRL + C, then CTRL+X D. CTRL + C, then CTRL + V Before: A B $ 200.00 C A B $200.00 Question 18. Which of the following will appear as a positive amount on a statement of cash flows that was prepared using the indirect method? A. A decrease in accounts payables B. Depreciation expense C. An increase in accounts receivable D. An increase in inventories Question 19.Balance Sheet - which of the following is incorrect? A. We can discuss the balance sheet items in terms of whether they are operating or nonoperating. Question 19.Balance Sheet - which of the following is incorrect? A. We can discuss the balance sheet items in terms of whether they are operating or nonoperating. B. A classified balance sheet highlights the differences between operating and nonoperating categories of assets and liabilities. C.A classified balance sheet highlights current assets, long-term assets, current liabilities, long-term liabilities and owners' equity. D. The balance sheet represents the accounting equation of assets = liabilities + owners' equity. 20.Which of the following is not part of shareholders' equity? A. Common stock B. Equity method investment in other companies C. Accumulated comprehensive income D. Retained earning E. Treasury stock 21. Which of the following is true? A.Use footnotes and comments to explain your work when needed. B.Hiding rows is better than grouping. C.Always merge columns instead of "centering across selection". D.Daisy chaining is an efficient way to link cells. 22.A 10-Q financial filing has all the following characteristics EXCEPT: A.Issued 4 times a year. B. Provides the most up-to-date financial information for the firm. 25.The required financial statements for public traded companies include: Income Statement Statement of Comprehensive Income Balance Sheet Statement of Cash Flows Statement of Shareholders' Equity Statement of Retained Earnings A.125,6 B.13.4,5,6 C.1,2,3,4,5 D.1,3,4,5 26. If you want to copy and paste a formula, but not the formats, to another cell which of the following steps would work? A.CTRL + C, move to cell you want to copy to, CTRL + ALT +V E, ENTER B.CTRL + C, move to cell you want to copy to, CTRL + V C.CTRL + C, move to cell you want to copy to, CTRL + ALT + V V, ENTER D.CTRL + C, move to cell you want to copy to, ENTER 27. Which of the following is not true? A.Private companies intending to go public in an IPO file form S-1. B.Publicly traded companies file quarterly results with the SEC in a form called 10-Q. C.Publicly traded companies file the announcement of a materially significant in a form called 6-K. D.Publicly traded companies file annual results with the SEC in a form called 10-K. Paldyldprl SLVIES 28. Which of the following is NOT a part of Porter's Five Forces? A.Supplier Power B.Buyer Power C.Switching Costs D.Barriers to Entry 29. Which of the following metrics will not be part of a firm's historical income statements as presented in Form 10-K? A.Operating Profit B.Gross Profit C.SG&A D.EBITDA 30.Prices for year-end AAPL stock are listed below. Write the Excel formula that will show average stock price in cell B7. A.=SUM(B2:B6)/6 B.AVERAGE(B2:B6) C=SUM(B2-B6)/6 D.=AVG(B2-B6) E:=AVG(B2:B6) F:=AVERAGE(B2-B6) 31.If you want to find out if the CEO is selling his or her stock or buying more, you should search which public filings? A Date Stock Price 31-Dec-13 $ 68.95 31-Dec-14 $ 104.06 31-Dec-15 $ 100.93 31-Dec-16 $ 113.52 31-Dec-17 $ 168.54 Average 3 4 5 6 7 A.10-Q B.Form 4 C.10-K D.8-K 32.Which of the following statements is incorrect? A.Dividends represent operating expenses which are frequently paid on a quarterly basis. B.A U.S. corporation's revenues are reported on the top line of its income statement, while its earnings are reported on the bottom line (or near the bottom) of the income statement. 32.Which of the following statements is incorrect? A.Dividends represent operating expenses which are frequently paid on a quarterly basis. B.A U.S. corporation's revenues are reported on the top line of its income statement, while its earnings are reported on the bottom line (or near the bottom) of the income statement. C.Capital expenditures or capex are the amounts spent for tangible assets that will be used for more than one year in the operations of a business. Capital expenditures can be thought of as the amounts spent to acquire or improve a company's fixed assets or property, plant & equipment. D.Earnings is the net amount earned after deducting the cost of goods sold, expenses and losses. It is often presented as net earnings or net income. 33. Which is true when reading financial statements? A.Balance Sheet amounts represent asset, liability and owner equity changes for the reporting period. B.Statement of Shareholders' Equity amounts represent cash balances at the end of the reporting period. C.Statement of Cash Flows amounts represent cash inflows and outflows for the current reporting period. D.Income Statement amounts represent revenue and expense changes from the prior period. 34.Why is the amount for operating income important? A.Operating income provides a basis for assessing the wealth of the firm. B.Operating income includes all operating revenues and expenses, as well as, interest and taxes related to operations. C.This figure provides a basis for assessing the success of a company apart from its financing and investing activities and separate from its tax status. Thic ie the ficuro nended for calculating incomo taun- JE - Normal No Spac... Heading Heading 2 Title Subtitle Subtle Em... Emphasis The Paragraph Styles A.Balance Sheet amounts represent asset, liability and owner equity changes for the reporting period. B.Statement of Shareholders' Equity amounts represent cash balances at the end of the reporting period. C.Statement of Cash Flows amounts represent cash inflows and outflows for the current reporting period. D.Income Statement amounts represent revenue and expense changes from the prior period. 34.Why is the amount for operating income important? A.Operating income provides a basis for assessing the wealth of the firm. B.Operating income includes all operating revenues and expenses, as well as, interest and taxes related to operations. C.This figure provides a basis for assessing the success of a company apart from its financing and investing activities and separate from its tax status. D.This is the figure needed for calculating income taxes. Question 35 What formula can be entered into cell G3 to display the CAGR for revenue for the periods displayed? A.=Rate(G2,0,B3,F3,0) B.Rate(G2,0,B3,-F3,0) C:ECAGR(B3:F3) D: Average(B3:F3) B . C D E F CAGR 4 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 3 Revenues $ 1,000 $ 1,500 $ 2,500 $ 4,500 $ 5,400