Which of the following statements is TRUE? A. Passive investing accepts the market price as value B. Passive investors forecast future payoffs to discover the value of an investment C. Fundamental investing relies on intuition D. None of the options

Which of the following is a possible reason for the fact that for most companies, the book value of equity is not equal to the market value of equity? A. R&D expenditures and advertising expenditures are always capitalised B. None of the options C. Some intangible assets are not recognised on the statement of financial position D. Financial statements capture future growth opportunities

After reformulating the statement of cash flow for a company, you notice that a company has generated positive cash flows from operations (C), investment (I), and financing (d + F). How will you interpret this situation? A. Positive cash flows from operating, investing, and financing activities is a sign of healthy and mature business B. Positive cash flows from operating, investing, and financing activities suggest that the company is growing very fast and it is a young company C. None of the options D. Positive cash flows from operating, investing, and financing activities suggest that the company is not generating sufficient cash to fund cash investment

What is the appropriate classification of preference dividends on the reformulated income statement? A. Core operating income from sales B. Unusual operating income C. Total net financial expenses D. Operating OCI

What should be the appropriate classification of accrued compensation on the reformulated balance sheet? A. Operating liability B. Financial asset C. Operating asset D. Financial obligation

QUESTION 16 Which of the following items are considered in calculating net transactions with shareholders? There can be more than one correct answer. Please select all the correct answers. A. Operating OCI B. Shares issued C. Dividends paid D. Financing OCI

QUESTION 17 Which of the following are ADVANTAGES of the residual operating income model (ReOI)? There can be more than one correct answer. Please select all the correct answers. A. It does not require forecasting capital structure of the company. B. It does not require forecasting net dividends. C. It can be applied using consensus analyst forecasts. D. It can be applied to companies which do not pay dividends.

QUESTION 18 Which of the following items are usually classified as operating assets on the reformulated statement of financial position? There can be more than one correct answer. Please select all the correct answers. A. Passive investment B. Right-of-use assets C. Inventories D. Financial cash

QUESTION 19 Which of the following items are usually classified as financial obligations on the reformulated statement of financial position? There can be more than one correct answer. Please select all the correct answers. A. Banks overdraft B. Lease obligations C. Employee benefit obligations D. Trade payable

QUESTION 20 In the reformulation of the statement of cash flows for JB Hi-Fi discussed in the class, which of the following is/are TRUE regarding stock-based compensation? There can be more than one correct answer. Please select all the correct answers. A. They were ignored as they are non-cash items and will not affect the cash flows B. They were treated as cash outflow due to investing activities C. They were treated as cash inflow due to financing activities D. They were treated as cash outflow due to operating activities