Which of the following is true about GAAP and financial accounting.

1.GAAP covers financial accounting and Managerial Accounting is a separate set of accounting with different accounting principles.

2.GAAP requires four financial statements and the accompanying notes to the financial statements

3.The Management's Discussion and Analysis is covered by the Auditor's Opinion

4.GAAP has been standardized across the world to provide consistency to users of financial statements

Which of the following is FALSE about managerial accounting?

1. Variance Reports are usually provided monthly, comparing budgets to actuals.

2. Managerial accounting covers operating and capital budgeting

3. Managerial accounting statements are used by managers inside the company and are a part of the Management's Discussion and Analysis (MD&A)

4. Managerial accounting includes the Balanced Scorecard, which includes financial and non-financial metrics'

Which of the following is FALSE about SEC filings?

1. The SEC reporting requirements include the Financial Statements in accordance with GAAP plus some other disclosures from the SEC

2. The 8-K is for events that require timely disclosure, e.g. lawsuits or change in executive management

3. The 10-Q is the required quarterly financial report with summary information

4. The 10-K is required for all corporations, publicly traded or private

Which of the following is NOT true about common size analysis

1. One way to common size a balance sheet is to divide every item by total assets

2. If the common sized income statement shows an increasing expense item (such as salaries or rent), that shows effective management

3. One use of common sizing a balance sheet is to see how the assets of the company were financed.

4. Common sizing of the Income statement is performed by dividing all the numbers by the amount of sales.

If you have the following sales history, what is the best way to present sales growth?

Year	Sales
1	1000
2	900
3	1400
4	1100
5	1600

1. Perform a time value of money calculation, (the Rate function) with present value -1000, future value of 1600, number of periods of 5 and payment of 0.

2. Take the year to year percentage changes in sales, then average them

3. take the growth from year 1 to year 5 and divide it by the number of years, i.e. 1600-1000 =600 increase. 600/1000 = 60% over years or 15% per year

4. take the growth from year 1 to year 5 and divide it by the number of years, i.e. 1600-1000 =600 increase. 600/1000 = 60% over 5 years or 12% per year

5. Perform a time value of money calculation, (the Rate function) with present value -1000, future value of 1600, number of periods of 4 and payment of 0.

Which of the following is NOT one of the steps in the Best Practices in Financial Modeling?

1. Document Key Inputs and Assumptions

2. Have your model audited by your public accountant

3. Perform sensitivity and scenario analysis

4. Include historical data

5. Protect cells and worksheets

6. Defined input area

Which of the following is FALSE about basic statistical measures?

1.The median equals the sum of the data points divided by the number of observations in the sample

2.In finance, the wider the distribution, the lower the risk

3.Each of the choices provided are false

4.The mean is the midpoint of the observations

5.The mean, plus or minus 1 standard deviation, captures 95% of the data.