Corporate finance 4th edition exam test guide with latest updated questions with correct answers graded A+
5) Which of the following statements regarding the balance sheet is INCORRECT?
A) The balance sheet provides a snapshots of the firm's financial position at a given point in time.
B) The ...
Corporate
finance
4th
edition
exam
test
guide
with
latest
2023-2024
updated
questions
with
correct
answers
graded
A+
1)
U.S.
public
companies
are
required
to
file
their
annual
financial
statements
with
the
U.S.
Securities
and
Exchange
Commission
on
which
form?
A)
10-A
B)
10-K
C)
10-Q
D)
10-SEC
Answer:
B
2)
Which
of
the
following
is
NOT
a
financial
statement
that
every
public
company
is
required
to
produce?
A)
Income
Statement
B)
Statement
of
Sources
and
Uses
of
Cash
C)
Balance
Sheet
D)
Statement
of
Stockholders'
Equity
Answer:
B
l
3)
The
third
party
who
checks
annual
financial
statements
to
ensure
that
they
are
prepared
according
to
GAAP
and
verifies
that
the
information
reported
is
reliable
is
the: A)
NYSE
Enforcement
Board.
B)
Accounting
Standards
Board.
C)
Securities
and
Exchange
Commission
(SEC).
D)
auditor.
Answer:
D
4)
What
is
the
role
of
an
auditor
in
financial
statement
analysis?
Answer:
Key
points:
1.
To
ensure
that
the
annual
financial
statements
are
prepared
accurately .
2.
To
ensure
that
the
annual
financial
statements
are
prepared
according
to
GAAP.
3.
To
verify
that
the
information
used
in
preparing
the
annual
financial
statements
is
reliable.
5)
What
are
the
four
financial
statements
that
all
public
companies
must
produce?
Answer:
1.
Balance
Sheet
2.
Income
Statement
3.
Statement
of
Cash
Flows
4.
Statement
of
Stockholder's
Equity
2.2
The
Balance
Sheet
1)
Which
of
the
following
balance
sheet
equations
is
INCORRECT?
A)
Assets
-
Liabilities
=
Shareholders'
Equity
B)
Assets
=
Liabilities
+
Shareholders'
Equity
C)
Assets
-
Current
Liabilities
=
Long
Term
Liabilities
D)
Assets
-
Current
Liabilities
=
Long
Term
Liabilities
+
Shareholders'
Equity
Answer:
C
2)
Cash
is
a:
A)
long-term
asset.
B)
current
asset.
C)
current
liability.
D)
long-term
liability. Answer:
B
3)
Accounts
payable
is
a:
A)
long-term
liability.
B)
current
asset.
C)
long-term
asset.
D)
current
liability.
Answer:
D
4)
A
30
year
mortgage
loan
is
a:
A)
long-term
liability.
B)
current
liability.
C)
current
asset.
D)
long-term
asset.
Answer:
A
5)
Which
of
the
following
statements
regarding
the
balance
sheet
is
INCORRECT?
A)
The
balance
sheet
provides
a
snapshots
of
the
firm's
financial
position
at
a
given
point
in
time.
B)
The
balance
sheet
lists
the
firm's
assets
and
liabilities.
C)
The
balance
sheet
reports
stockholders'
equity
on
the
right
hand
side.
D)
The
balance
sheet
reports
liabilities
on
the
left
hand
side.
Answer:
D
6)
Dustin's
Donuts
experienced
a
decrease
in
the
value
of
the
trademark
of
a
company
it
acquired
two
years
ago.
This
reduction
in
value
results
in:
A)
an
impairment
charge.
B)
depreciation
expense.
C)
an
operating
expense.
D)
goodwill.
Answer:
A 7)
Which
of
the
following
is
an
example
of
an
intangible
asset?
A)
Brand
names
and
trademarks
B)
Patents
C)
Customer
relationships
D)
All
of
the
above
are
intangible
assets.
Answer:
D
8)
On
the
balance
sheet,
short-term
debt
appears:
A)
in
the
Stockholders'
Equity
section.
B)
in
the
Operating
Expenses
section.
C)
in
the
Current
Assets
section.
D)
in
the
Current
Liabilities
section.
Answer:
D
9)
On
the
balance
sheet,
current
maturities
of
long-term
debt
appears:
A)
in
the
Stockholders'
Equity
section.
B)
in
the
Operating
Expenses
section.
C)
in
the
Current
Assets
section.
D)
in
the
Current
Liabilities
section.
Answer:
D
10)
The
firm's
assets
and
liabilities
at
a
given
point
in
time
are
reported
on
the
firm's:
A)
income
statement
or
statement
of
financial
performance.
B)
income
statement
or
statement
of
financial
position.
C)
balance
sheet
or
statement
of
financial
performance.
D)
balance
sheet
or
statement
of
financial
position.
Answer:
D
11)
The
statement
of
financial
position
is
also
known
as
the:
A)
balance
sheet.
B)
income
statement.
C)
statement
of
cash
flows.
D)
statement
of
stockholder's
equity.
Answer:
A
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