2020文档课后习题财报_h

1、cfa frm cpa 最新资料加微信大号x00-jmy 小号cfawk1 CFAtitute. For candidate use only. Not for distributioPractice Problems39 PRACTICE PROBLEMSProviding information about the performance and financial position of compa- nies so that users can make economic decisions best describes the role of:A auditing.B financi

2、al reporting.C financial statement analysis.Which of the following best describes the role of financial statement analysis?A To provide information about a companys performanceB To provide information about a companys changes in financial position12To form expectations about a companys future perfor

3、mance and financial positionThe role of financial statement analysis is best described as:A providing information useful for making investment decisions.B evaluating a company for the purpose of making economic decisions.C using financial reports prepared by analysts to make economic decisions. A co

4、mpanys financial position would best be evaluated using the:A balance sheet.B income statement.C statement of cash flows.A companys profitability for a period would best be evaluated using the:A balance sheet.B income statement.C statement of cash flows.The financial statement that presents a shareh

5、olders residual claim on assets is the:A balance sheet.B income statement.C cash flow statement.A companys profitability over a period of time is best evaluated using the:A balance sheet.B income statement.C cash flow statement.The income statement is best used to evaluate a companys:A financial pos

6、ition.B sources of cash flow.C financial results from business activities.Accounting policies, methods, and estimates used in preparing financial state- ments are most likely to be found in the:A auditors report.B management commentary.C notes to the financial statements.C3456789 2017 CFAtitute. All

7、 rights reserved.cfa frm cpa 最新资料加微信大号：x00-jmy 小号 cfawk1cfa frm cpa 最新资料加微信大号x00-jmy 小号cfawk1 CFAtitute. For candidate use only. Not for distributioReading 19 Introduction to Financial Statement Analysis40Information about management and director compensation are least likely to be found in the:A au

8、ditors report.B proxy statement.C notes to the financial statements.Information about a companys objectives, strategies, and significant risks aremost likely to be found in the:A auditors report.B management commentary.C notes to the financial statements.Which of the following best describes why the

9、 notes that accompany the finan- cial statements are required? The notes:101112Apermit flexibilitytatement preparation.B standardize financial reporting across companies.C provide information necessary to understand the financial statements.What type of audit opinion is preferred when analyzing fina

10、ncial statements?A Qualified.B Adverse.C Unqualified.An auditor determines that a companys financial statements are prepared in accordance with applicable accounting standards except with respect to inven- tory reporting. This exception is most likely to result in an audit opinion that is:A adverse.

11、B qualified.C unqualified.An independent audit report is most likely to provide:131415A absolute assurance about the accuracy of the financial statements.B reasonable assurance that the financial statements are fairly presented.a qualified opinion with respect to the transparency of the financial st

12、atements.Interim financial reports released by a company are most likely to be:Amonthly.C16unaudited.BCunqualified.Which of the following sources of information used by analysts is found outside a companys annual report?A Auditors reportB Peer company analysisC Managements discussion and analysisRat

13、ios are an input into which step in the financial statement analysis framework?AProcess data.1718Collect input data.BCAnalyze/interpret the processed data.cfa frmcpa 最新资料加微信大号：x00-jmy 小号 cfawk1cfa frm cpa 最新资料加微信大号x00-jmy 小号cfawk1 CFAtitute. For candidate use only. Not for distributioPractice Proble

14、ms4119 Which phase in the financial statement analysis framework is most likely to involve producing updated reports and recommendations?Follow-upABAnalyze/interpret the processed dataDevelop and communicate conclusions and recommendationsCcfa frm cpa 最新资料加微信大号：x00-jmy 小号cfawk1cfa frm cpa 最新资料加微信大号x

15、00-jmy 小号cfawk1 CFAtitute. For candidate use only. Not for distributioReading 19 Introduction to Financial Statement Analysis42 SOLUTIONSB is correct. This is the role of financial reporting. The role of financial state- ment analysis is to evaluate the financial reports.C is correct. In general, an

16、alysts seek to examine the past and current perfor- mance and financial position of a company in order to form expectations about its future performance and financial position.B is correct. The primary role of financial statement analysis is to use financial reports prepared by companies to evaluate

17、 their past, current, and potential performance and financial position for the purpose of making investment, credit, and other economic decisions.A is correct. The balance sheet portrays the companys financial position on a specified date. The income statement and statement of cash flows present dif

18、fer- ent aspects of performance during the period.B is correct. Profitability is the performance aspect measured by the income statement. The balance sheet portrays the financial position. The statement of cash flows presents a different aspect of performance.A is correct. Owners equity is the owner

19、s residual interest in (i.e., residual claim on) the companys assets after deducting its liabilities, which is informa- tion presented on the balance sheet.B is correct. A companys profitability is best evaluated using the income statement. The income statement presents information on the financial

20、results of a companys business activities over a period of time by communicating how much revenue was generated and the expenses incurred to generate that revenue.C is correct. A companys revenues and expenses are presented on the income statement, which is used to evaluate a companys financial resu

21、lts (or profit- ability) from business activities over a period of time. A companys financial position is best evaluated by using the balance sheet. A companys sources of cash flow are best evaluated using the cash flow statement.C is correct. The notes disclose choices in accounting policies, metho

22、ds, and estimates.A is correct. Information about management and director compensation is not found in the auditors report. Disclosure of management compensation is required in the proxy statement, and some aspects of management compensa- tion are disclosed in the notes to the financial statements.B

23、 is correct. These are components of management commentary.C is correct. The notes provide information that is essential to understanding the information provided in the primary statements.C is correct. An unqualified opinion is a “clean” opinion and indicates that the financial statements present t

24、he companys performance and financial position fairly in accordance with a specified set of accounting standards.B is correct. A qualified audit opinion is one in which there is some scope limitation or exception to accounting standards. Exceptions are described in the audit report with additional e

25、xplanatory paragraphs so that the analyst can determine the importance of the exception.1234567891011121314cfa frm cpa 最新资料加微信大号：x00-jmy 小号 cfawk1cfa frm cpa 最新资料加微信大号x00-jmy 小号cfawk1Solutions43B is correct. The independent audit report provides reasonable assurance that the financial statements are

26、 fairly presented, meaning that there is a high proba- bility that the audited financial statements are free from material error, fraud, or illegal acts that have a direct effect on the financial statements.B is correct. Interim reports are typically provided semiannually or quarterly and present th

27、e four basic financial statements and condensed notes. They are not audited. Unqualified is a type of audit opinionB is correct. When performing financial statement analysis, analysts should review all company sources of information as well as information from external sources regarding the economy,

28、 the industry, the company, and peer (compara- ble) companies.C is correct. Ratios are an output of the process data step but are an input into the analyze/interpret data step.A is correct. The follow-up phase involves gathering information and repeat- ing the analysis to determine whether it is nec

29、essary to update reports and recommendations.1516171819cfa frm cpa 最新资料加微信大号：x00-jmy 小号cfawk1cfafrmcpa 最新资料加微信大号x00-jmy小号cfawk1cfa frm cpa 最新资料加微信大号：x00-jmy 小号cfawk1cfa frm cpa 最新资料加微信大号x00-jmy小号cfawk166Reading 20 Financial Reporting Standards PRACTICE PROBLEMSWhich of the following is most likely n

30、ot an objective of financial statements?A To provide information about the performance of an entity.B To provide information about the financial position of an entity.C To provide information about the users of an entitys financial statements. International financial reporting standards are currentl

31、y developed by which entity?A The IFRS Foundation.B The International Accounting Standards Board.C The International Organization of Securities Commissions.US generally accepted accounting principles are currently developed by which entity?A The Securities and Exchange Commission.B The Financial Acc

32、ounting Standards Board.C The Public Company Accounting Oversight Board.A core objective of the International Organization of Securities Commissions is to:A eliminate systemic risk.B protect users of financial statements.C ensure that markets are fair, efficient, and transparent.According to the Con

33、ceptual Framework for Financial Reporting, which of the following is not an enhancing qualitative characteristic of information in finan- cial statements?A Accuracy.B Timeliness.C Comparability.Which of the following is not a constraint on the financial statements according to the Conceptual Framewo

34、rk?A Understandability.B Benefit versus cost.C Balancing of qualitative characteristics.The assumption that an entity will continue to operate for the foreseeable future is called:A accrual basis. B comparability. C going concern.The assumption that the effects of transactions and other events are r

35、ecognized when they occur, not when the cash flows occur, is called:A relevance.B accrual basis.C going concern.12345678 2019 CFAtitute. All rights reserved.cfa frm cpa 最新资料加微信大号：x00-jmy 小号 cfawk1cfa frm cpa 最新资料加微信大号x00-jmy 小号cfawk1Practice Problems67Neutrality of information in the financial state

36、ments most closely contributes to which qualitative characteristic?A Relevance.B Understandability.C Faithful representation.Valuing assets at the amount of cash or equivalents paid or the fair value of the consideration given to acquire them at the time of acquisition most closely describes which m

37、easurement of financial statement elements?A Current cost.B Historical cost.C Realizable value.The valuation technique under which assets are recorded at the amount that would be received in an orderly disposal is:A current cost.B present value.C realizable value.Which of the following is not a requ

38、ired financial statement according to IAS No. 1?A Statement of financial position.B Statement of changes in income.C Statement of comprehensive income.Which of the following elements of financial statements is most closely related to measurement of performance?910111213AAssets.Expenses.BCLiabilities

39、.Which of the following elements of financial statements is most closely related to measurement of financial position?A Equity.B Income.C Expenses.Which of the following disclosures regarding new accounting standards pro- vides the most meaningful information to an analyst?A The impact of adoption i

40、s discussed.B The standard will have no material impact.C Management is still evaluating the impact.1415cfa frm cpa 最新资料加微信大号：x00-jmy 小号 cfawk1cfa frm cpa 最新资料加微信大号x00-jmy小号cfawk168Reading 20 Financial Reporting Standards SOLUTIONSC is correct. Financial statements provide information, including inf

41、ormation about the entitys financial position, performance, and changes in financial posi- tion, to users. They do not typically provide information about users.B is correct. The IASB is currently charged with developing International Financial Reporting Standards.B is correct. The FASB is responsib

42、le for the Accounting Standards Codification, the single source of nongovernmental authoritative US generally accepted accounting principles.C is correct. A core objective of IOSCO is to ensure that markets are fair, effi- cient, and transparent. The other core objectives are to reduce, not eliminat

43、e, systemic risk and to protect investors, not all users of financial statements.A is correct. Accuracy is not an enhancing qualitative characteristic. Faithful representation, not accuracy, is a fundamental qualitative characteristic.A is correct. Understandability is an enhancing qualitative chara

44、cteristic of financial informationnot a constraint.C is correct. The Conceptual Framework identifies two important underlying assumptions of financial statements: accrual basis and going concern. Going concern is the assumption that the entity will continue to operate for the foreseeable future. Ent

45、erprises with the intent to liquidate or materially curtail operations would require different information for a fair presentation.B is correct. Accrual basis reflects the effects of transactions and other events being recognized when they occur, not when the cash flows. These effects are recorded a

46、nd reported in the financial statements of the periods to which they relate.C is correct. The fundamental qualitative characteristic of faithful representa- tion is contributed to by completeness, neutrality, and freedom from error.B is correct. Historical cost is the consideration paid to acquire a

47、n asset.C is correct. The amount that would be received in an orderly disposal is realiz- able value.B is correct. There is no statement of changes in income. Under IAS No. 1, a complete set of financial statements includes a statement of financial position, a statement of comprehensive income, a st

48、atement of changes in equity, a state- ment of cash flows, and notes comprising a summary of significant accounting policies and other explanatory information.B is correct. The elements of financial statements related to the measure of performance are income and expenses.A is correct. The elements o

49、f financial statements related to the measurement of financial position are assets, liabilities, and equity.A is correct. A discussion of the impact would be the most meaningful, although B would also be useful.123456789101112131415cfa frm cpa 最新资料加微信大号：x00-jmy 小号 cfawk1cfa frm cpa 最新资料加微信大号x00-jmy

50、小号cfawk1Practice Problems119 PRACTICE PROBLEMSExpenses on the income statement may be grouped by:A nature, but not by function. B function, but not by nature. C either function or nature.An example of an expense classification by function is:A tax expense.B interest expense.C cost of goods sold.Dena

51、li Limited, a manufacturing company, had the following income statement information:123RevenueCost of goods soldOther operating expenses Interest expenseTax expense$4,000,000$3,000,000$500,000$100,000$120,000Denalis gross profit is equal to:A$280,000.B$500,000.C$1,000,000.Under IFRS, income includes

52、 increases in economic benefits from:A increases in liabilities not related to owners contributions.B enhancements of assets not related to owners contributions.C increases in owners equity related to owners contributions.Fairplay had the following information related to the sale of its products dur

53、ing 2009, which was its first year of business:45RevenueReturns of goods sold Cash collectedCost of goods sold$1,000,000$100,000$800,000$700,000Under the accrual basis of accounting, how much net revenue would be reported on Fairplays 2009 income statement?A$200,000.$900,000.BC$1,000,000.Apex Consig

54、nment sells items over the internet for individuals on a consign- ment basis. Apex receives the items from the owner, lists them for sale on the internet, and receives a 25 percent commission for any items sold. Apex collects the full amount from the buyer and pays the net amount after commission to

55、the owner. Unsold items are returned to the owner after 90 days. During 2009, Apex had the following information:6 2019 CFAtitute. All rights reserved.cfa frm cpa 最新资料加微信大号：x00-jmy 小号 cfawk1cfa frm cpa 最新资料加微信大号x00-jmy 小号cfawk1120Reading 21 Understanding Income StatementsTotal sales price of items s

56、old during 2009 on consignment was2,000,000. Total commissions retained by Apex during 2009 for these items was500,000.How much revenue should Apex report on its 2009 income statement?A 500,000. B 2,000,000. C 1,500,000.A company previously expensed the incremental costs of obtaining a contract. All else being equal, adopting the May 2014 IASB and FASB converged account- ing standards on revenue recognition makes the companys profitability initially appear:A lower.B unchanged.C higher.During 2009, Accent Toys Plc., which began business in October of that year, purchased 1