Credit analysts are likely to consider which of the following in making a rating recommendations?

c. both business risk and financial risk

When screening for potential equity investments based on return on equity, to control risk, an analyst would

most likely to include a criterion that requires:

A. Positive net income

B. Negative net income

C. Negative shareholders equity

One concern when screening for stocks eith low price to earning ratios is that companies with low P/Es may be financially

weak. What criterion might an analyst include to avoid inadvertently selecting weak companies

A. Net income less than zero

B. Debt to total assets ratio below a certain cutoff point

C. Current year sales growth lower than prior year sales growth

when a database eliminates companies that cease to exist because of merger or bankruptcy, this can result in:

A. Look ahead bias

B. Back - testing Bias

C. Survivorship bias

In a comprehensive financial analysis, financial statement should be :

C. Adjusted for deferences in accounting standards, such as international financial reporting standards and US

generally accepted accounting principles.

A. Used as reported without adjustment

B. Adusted for differences in accounting standard, such as

international reporting standards and US and US generally accepted accounting principles

When comparing financial statements prepared under IFRS with those prepared under U.S GAAP, analyst may need

to make adjustments related to:

A. Realized losses

B. unrealized gains and losses for trading securities

C.. unrealized gains and losses for availablefor sales securities

when comparing a US company that uses the last in, first out (LIFO) method of inventory with companies that prepares

their financial statementsunder international financial reporting standards (IFRS), analyst shoulld be aware that according to IFRS, the

LIFO method of inventory:

A. Never Acceptable

B. is always acceptable

C. Is acceptable when applied to finished goods inventory only