Financial Reporting, Finance And Accounting

Question: What does the indirect method of preparing the cash flow statement effectively accomplish?
A
It keeps the use of cash vague so the reader cannot tell the exact use

B
It is a less detailed summary version of use of cash

C
It takes the accrual basis of accounting and converts it to cash basis

D
It shows the reader how well the management is performing

Note: Not available
1. Report
Question: Which cash collection technique is the most cost-effective for companies with many locations?
A
Self-addressed stamped envelopes

B
Centralized collection system

C
Lockbox system

D
Using a post office box

E
Regional collection offices

Note: Not available
1. Report
Question: How does Treasury Stock differ from Trading Stock?
A
Treasury stock is an indication that a company is failing

B
Treasury stock has no voting or dividend rights

C
Treasury stock is looked negatively upon by the investment community

D
Treasury stock can be resold to employees at a discount

Note: Not available
1. Report
Question: How often do companies typically generate standard financial reports?
A
Yearly

B
Quarterly

C
Monthly

D
Daily

Note: Not available
1. Report
Question: What is one procedure a Company Manager would take to make the information on financial reports more useful for examination?
A
Hire an auditor to validate the company reports

B
Use the information on the financial reports to do a financial analysis, creating comparable ratios

C
Compare it to other companies

D
Change the statement of cash flows to be the direct method

Note: Not available
1. Report
Question: How does the income statement of a charity differ from that of a public company?
A
Charities typically have higher overhead expenses such as management wages

B
Charities produce a similar report which shows funding sources, and program expenses and other commitments

C
Charities do not generate cash via a revenue model, and do not produce any statements

D
Charities report each donation as taxable income

Note: Not available
1. Report
Question: In what general way do investors use the information in the financial statements?
A
To determine if a company is worth investing in

B
To determine if a company is too top heavy with management

C
To look for irregularities and report them to the authorities

D
To look for insider trading

Note: Not available
1. Report
Question: Which of the following is not a part of cost of goods sold?
A
Raw material

B
Labor

C
Capital

D
All of the above are part of cost of goods sold

Note: Not available
1. Report
Question: Which of the following does Financing Activities not include?
A
Payments to vendors

B
Payments of dividends to company shareholders

C
Payments to repurchase company shares

D
Repayment of debt

Note: Not available
1. Report
Question: A company declares a dividend. What is its effect on the cash?
A
It increases Cash

B
It decreases Cash

C
There is no change

D
It depends on the dividend date

Note: Not available
1. Report

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Question: What does the indirect method of preparing the cash flow statement effectively accomplish?

Question: Which cash collection technique is the most cost-effective for companies with many locations?

Question: How does Treasury Stock differ from Trading Stock?

Question: How often do companies typically generate standard financial reports?

Question: What is one procedure a Company Manager would take to make the information on financial reports more useful for examination?

Question: How does the income statement of a charity differ from that of a public company?

Question: In what general way do investors use the information in the financial statements?

Question: Which of the following is not a part of cost of goods sold?

Question: Which of the following does Financing Activities not include?

Question: A company declares a dividend. What is its effect on the cash?