Financial Reporting, Finance And Accounting

Question: Which is an example of a variable cost?
A
Management salaries

B
Utilities

C
Property taxes

D
Raw material

E
Depreciation

Note: Answer not sure
1. Report
Question: Why is the Statement of RE created?
A
To show the changes in Retained Earnings over a period of time

B
To show how the Retained Earnings balance at a specific time

C
To give the reader an idea of how much cash is reinvested in the company

D
It is a placeholder for tax liability

Note: Answer not sure
1. Report
Question: Why is depreciation added back in the cash flow statement?
A
It is a substantial number which could skew the report if ignored

B
Companies handle depreciation differently so it is added back to neutralize any effects

C
It is non taxable

D
It is a transaction which will never impact cash and needs to be reversed out from its effect on net income

Note: Answer not sure
1. Report
Question: Why would someone be interested in how the company used its cash?
A
Cash flow indicates profitability

B
Cash flow indicates how the company is managing its cash resources

C
The current cash flow statement indicates future profitability

D
It is a good detection method for fraud

Note: Answer not sure
1. Report
Question: Why would the general public be interested in a company's financial statements?
A
They might want early indications of management decisions

B
They work for or are considering working for the company

C
They are acting as a watch dog for the SEC

D
The IRS hires individuals to secretly audit company financial statements for fraud

Note: Answer not sure
1. Report
Question: Why would a company repurchase their own stock?
A
To reduce the market float at a time when the stock is undervalued in the market

B
To reduce the market float when prices are high

C
To increase the market float at a discount

D
To increase the market float at a premium, sending stocks higher

Note: Answer not sure
1. Report
Question: Which of these items would be accounted for as an expense?
A
Repayment of a bank loan

B
Dividends to stockholders

C
Purchase of land

D
Payment of the current period's rent

Note: Answer not sure
1. Report
Question: Why would a company repurchase their own stock?
A
It is required to by the law after 1 year

B
To dilute the outstanding shares

C
To put cash in the stockholder's hands without issuing a dividend

D
To boost the share price

Note: Answer not sure
1. Report
Question: What number is transferred from the Income Statement to the Cash Flow statement?
A
Gross Sales

B
Net Income

C
Payroll Expense

D
Taxes

Note: Answer not sure
1. Report
Question: Which of the following would not appear on an income statement?
A
Cash

B
Payroll Expense

C
Income Tax

D
COGS

Note: Answer not sure
1. Report

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Question: Which is an example of a variable cost?

Question: Why is the Statement of RE created?

Question: Why is depreciation added back in the cash flow statement?

Question: Why would someone be interested in how the company used its cash?

Question: Why would the general public be interested in a company's financial statements?

Question: Why would a company repurchase their own stock?

Question: Which of these items would be accounted for as an expense?

Question: Why would a company repurchase their own stock?

Question: What number is transferred from the Income Statement to the Cash Flow statement?

Question: Which of the following would not appear on an income statement?