Test Bank Solutions For Financial Reporting and Analysis 8th Edition By Revsine PDF
| Title | Test Bank Solutions For Financial Reporting and Analysis 8th Edition By Revsine |
|---|---|
| Author | Student Resources |
| Course | Financial Statement Analysis |
| Institution | New York University |
| Pages | 57 |
| File Size | 3.6 MB |
| File Type | |
| Total Downloads | 7 |
| Total Views | 142 |
Summary
Test Bank, Solutions Manual, ebook, CONNECT Assignments and Learn Smart Quizzes for Financial Reporting and Analysis 8th Edition By Lawrence Revsine
ISBN10: 1260247848 , ISBN13: 9781260247848...
Description
5/29/2020
1.
Assignment Print View
Award:
The role of financial accounting information is to facilitate economic transactions and to foster efficient allocation of resources among businesses and individuals.
True False
Difficulty: 1 Easy
2.
Learning Objective: 01-01 Understand why financial statements are valuable sources of information about companies.
Award:
Financial reports provide information that can reduce investors’ uncertainty about the company’s opportunities and risks, thereby raising the company’s cost of capital.
True False
Difficulty: 2 Medium
https://ezto.mheducation.com/hm_accounting.tpx
Learning Objective: 01-02 Understand how financial reporting addresses the information demands of current or potential stakeholders allocating resources and monitoring manager activities.
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3.
Assignment Print View
Award:
Comparability across companies allows analysts to identify real economic similarities in and differences between underlying economic events because those similarities or differences are not obscured by accounting methods or disclosure practices.
True False
Difficulty: 2 Medium
4.
Learning Objective: 01-04 Understand how accounting rules are established, and why management can shape the financial information communicated to outsiders and still be within those rules.
Award:
Executive compensation contracts seldom contain annual bonus and longer term pay components tied to financial statement results, but instead usually rely on stock options as a means to reward managers in a manner that is less subject to manipulation by management.
True False
Difficulty: 2 Medium
https://ezto.mheducation.com/hm_accounting.tpx
Learning Objective: 01-02 Understand how financial reporting addresses the information demands of current or potential stakeholders allocating resources and monitoring manager activities.
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5.
Assignment Print View
Award:
Congress stipulated that the SEC develop rules for companies to disclose information on use of “conflict minerals.”
True False
The 2010 Dodd-Frank Act requires that the SEC develop rules for disclosures on “conflict minerals.”
Difficulty: 2 Medium
6.
Learning Objective: 01-02 Understand how financial reporting addresses the information demands of current or potential stakeholders allocating resources and monitoring manager activities.
Award:
The public and private sector regulatory agencies establish and enforce financial reporting requirements designed to ensure that companies meet certain minimum levels of financial disclosure.
True False
Difficulty: 1 Easy
https://ezto.mheducation.com/hm_accounting.tpx
Learning Objective: 01-03 Understand how the supply of financial information is influenced by the costs of producing and disseminating it and by the benefits it provides.
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7.
Assignment Print View
Award:
Although the SEC has the ultimate legal authority to set accounting principles in the U.S., it has looked to private-sector organizations (e.g., the FASB) to establish and enforce these principles.
True False
The SEC retains enforcement authority over financial reporting in the U.S.
Difficulty: 1 Easy
8.
Learning Objective: 01-04 Understand how accounting rules are established, and why management can shape the financial information communicated to outsiders and still be within those rules.
Award:
Management has considerable discretion over the particular accounting procedures used in the financial statements and over the details contained in related note disclosures.
True False
Difficulty: 1 Easy
https://ezto.mheducation.com/hm_accounting.tpx
Learning Objective: 01-04 Understand how accounting rules are established, and why management can shape the financial information communicated to outsiders and still be within those rules.
4/57
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9.
Assignment Print View
Award:
Accounting standard-setting in the U.S. is a technical process and thus little affected by political considerations.
True False
Difficulty: 1 Easy
10.
Learning Objective: 01-04 Understand how accounting rules are established, and why management can shape the financial information communicated to outsiders and still be within those rules.
Award:
Government regulation provides the primary motivation for firms to disclose sustainability-related information.
True False
Demand for sustainability reporting primarily arises from company stakeholders such as investors, creditors, and also is motived by public expectations.
Difficulty: 1 Easy
https://ezto.mheducation.com/hm_accounting.tpx
Learning Objective: 01-05 Understand why companies disclose sustainability information.
5/57
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11.
Assignment Print View
Award:
While an increasing percentage of companies report on sustainability, consistency in reporting continues to provide challenges for information users.
True False
Difficulty: 2 Medium
12.
Learning Objective: 01-05 Understand why companies disclose sustainability information.
Award:
The IASB and FASB have worked together to develop a single set of high-quality, understandable, enforceable and globally accepted international financial reporting standards.
True False
Difficulty: 1 Easy
https://ezto.mheducation.com/hm_accounting.tpx
Learning Objective: 01-07 Understand how International Financial Reporting Standards (IFRS) differ from U.S. Generally Accepted Accounting Principles (GAAP).
6/57
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13.
Assignment Print View
Award:
Foreign companies registered with the SEC that use IFRS no longer have to reconcile their financial statements to U.S. GAAP.
True False
Form F20 reconciles back to GAAP the earnings and shareholder’s equity
Difficulty: 2 Medium
14.
Learning Objective: 01-07 Understand how International Financial Reporting Standards (IFRS) differ from U.S. Generally Accepted Accounting Principles (GAAP).
Award:
U.S. GAAP has been criticized as being too "rules-based" thus allowing managers to invent "loopholes" that conform to the letter of a standard but simultaneously violate its spirit.
True False
Difficulty: 2 Medium
https://ezto.mheducation.com/hm_accounting.tpx
Learning Objective: 01-06 Understand why financial reporting philosophies and detailed accounting practices may differ across countries.
7/57
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15.
Assignment Print View
Award:
The goal of the movement toward international convergence of accounting standards is a single set of accounting standards accepted worldwide and superior to the choices presently available.
True False
Difficulty: 1 Easy
16.
Learning Objective: 01-07 Understand how International Financial Reporting Standards (IFRS) differ from U.S. Generally Accepted Accounting Principles (GAAP).
Award:
Regulators of industries granted monopoly privileges use financial statement data in setting the rates companies are permitted to charge for the services these industries provide.
True False
Difficulty: 1 Easy
https://ezto.mheducation.com/hm_accounting.tpx
Learning Objective: 01-02 Understand how financial reporting addresses the information demands of current or potential stakeholders allocating resources and monitoring manager activities.
8/57
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17.
Assignment Print View
Award:
Owners and managers have an economic incentive to supply the amount and type of financial information that will enable the company to raise capital at the lowest cost.
True False
Difficulty: 1 Easy
18.
Learning Objective: 01-03 Understand how the supply of financial information is influenced by the costs of producing and disseminating it and by the benefits it provides.
Award:
Financial statement information can help customers monitor a supplier’s manufacturing processes and thus evaluate the quality of its products.
True False
Difficulty: 1 Easy
https://ezto.mheducation.com/hm_accounting.tpx
Learning Objective: 01-02 Understand how financial reporting addresses the information demands of current or potential stakeholders allocating resources and monitoring manager activities.
9/57
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19.
Assignment Print View
Award:
The conceptual framework for financial reporting includes the standards of GAAP.
True False
Difficulty: 1 Easy
20.
Learning Objective: 01-04 Understand how accounting rules are established, and why management can shape the financial information communicated to outsiders and still be within those rules.
Award:
A company’s financial statements reflect information about:
future projections of sales, expenses, and other future economic events.
product information and competitive positions.
the general economy of the industry in which the company operates.
economic events that affect a company that can be translated into accounting numbers.
Difficulty: 1 Easy
https://ezto.mheducation.com/hm_accounting.tpx
Learning Objective: 01-01 Understand why financial statements are valuable sources of information about companies.
10/57
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21.
Assignment Print View
Award:
All financial statements:
provide a picture of the company at a moment in time.
describe changes that took place over a period of time.
help to evaluate what happened in the past. contain the most up to date information about the company.
Difficulty: 1 Easy
22.
Learning Objective: 01-01 Understand why financial statements are valuable sources of information about companies.
Award:
A firm’s financial statements contain trends that give users insight into the firm’s:
future market share.
position within its industry.
profitability, productivity, and liquidity. current market price for common and preferred stock.
Difficulty: 2 Medium
https://ezto.mheducation.com/hm_accounting.tpx
Learning Objective: 01-01 Understand why financial statements are valuable sources of information about companies.
11/57
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23.
Assignment Print View
Award:
The ability to raise additional cash by selling assets, issuing stock, or borrowing more is:
financial flexibility.
a credit risk indicator.
a stock price predictor.
one way to project earnings.
Difficulty: 1 Easy
24.
Learning Objective: 01-02 Understand how financial reporting addresses the information demands of current or potential stakeholders allocating resources and monitoring manager activities.
Award:
Creditors assess credit risk by comparing a firm’s required principal and interest payments to estimates of the firm’s current and future:
net assets.
gross income.
net income.
cash flows.
Difficulty: 2 Medium
https://ezto.mheducation.com/hm_accounting.tpx
Learning Objective: 01-02 Understand how financial reporting addresses the information demands of current or potential stakeholders allocating resources and monitoring manager activities.
12/57
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25.
Assignment Print View
Award:
Professional analysts need information on a company’s future earnings and cash flow to evaluate audit vulnerabilities, to assess debt repayment prospects and to:
certify good values in the stock market.
indemnify creditors against losses.
certify that no fraud exists in the company.
value its equity securities.
Difficulty: 2 Medium
26.
Learning Objective: 01-02 Understand how financial reporting addresses the information demands of current or potential stakeholders allocating resources and monitoring manager activities.
Award:
The costs of providing financial information is ultimately borne by:
management.
shareholders.
auditors.
professional analysts.
Difficulty: 2 Medium
https://ezto.mheducation.com/hm_accounting.tpx
Learning Objective: 01-03 Understand how the supply of financial information is influenced by the costs of producing and disseminating it and by the benefits it provides.
13/57
5/29/2020
27.
Assignment Print View
Which of the following statements is
correct regarding a company's financial statements?
They may present a picture of the company at a moment in time.
They may describe changes that took place over a period of time .
They reflect economic events that affect the company.
They are comparable to the statements of other companies as all publicly held companies follow the very precise science of accounting.
Difficulty: 1 Easy
28.
Award:
Learning Objective: 01-01 Understand why financial statements are valuable sources of information about companies.
Award:
Which of the following are correct with respect to information contained in financial statements?
Information asymmetry occurs when management has access to more and better information than is presented in the financial statements.
Financial statements cannot solve the issue of information asymmetry.
Financial statements eliminate the issue of and any concern over information asymmetry.
Financial statements help solve the issue of information asymmetry which is when management has access to more and better information than do people outside the company.
Difficulty: 3 Hard
https://ezto.mheducation.com/hm_accounting.tpx
Learning Objective: 01-01 Understand why financial statements are valuable sources of information about companies.
14/57
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29.
Assignment Print View
Which is
correct regarding Regulation Fair Disclosure (Reg FD)? It helps level the playing field between individual and institutional investors. It does not limit what management can say in private conversations with analysts or investors.
It was passed by the SEC.
It limits what management can say in private conversations with analysts and investors.
Difficulty: 1 Easy
30.
Award:
Learning Objective: 01-03 Understand how the supply of financial information is influenced by the costs of producing and disseminating it and by the benefits it provides.
Award:
Companies that have projected operating cash flows that are more than sufficient to meet debt payments are
financially risky. good credit risk companies.
undervalued.
overvalued.
Difficulty: 2 Medium
https://ezto.mheducation.com/hm_accounting.tpx
Learning Objective: 01-02 Understand how financial reporting addresses the information demands of current or potential stakeholders allocating resources and monitoring manager activities.
15/57
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31.
Assignment Print View
Award:
Investors who compare a firm’s discounted future cash flows to the current market price of a stock are using the:
efficient market hypothesis.
market-to-market approach.
fundamental analysis approach. technical analysis approach.
Difficulty: 2 Medium
32.
Learning Objective: 01-02 Understand how financial reporting addresses the information demands of current or potential stakeholders allocating resources and monitoring manager activities.
Award:
A company’s financial statements can be used for all of the following purposes
:
as a scorecard on the company’s social responsibility.
as a management report card.
as an early warning signal.
as a measure of accountability.
Difficulty: 2 Medium
https://ezto.mheducation.com/hm_accounting.tpx
Learning Objective: 01-01 Understand why financial statements are valuable sources of information about companies.
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33.
Assignment Print View
Award:
The market analysis known as fundamental analysis:
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