ACCT 4356 Final Exam Questions and Correct Answers

According to the International Financial Reporting Standards framewrk, which of the following qualities of financial information is least likely cited as one of the two fundamental characteristics that make financial information useful? A. Accural Accounting B. Relevance C.. Faith Representation A. Accural Accounting A company that an excess of operating cash flow over the amounts needed for capital expenditures and repayment of debt is most likely to have A. Positive FCFE B. Negative FCFE C. Negative FCFF A. Positive FCFE The first step in cash flow statement analysis should be to: A. Evaluate the consistency of cash flows B. Determine operating cash flow drivers C. Identify the major sources and uses of cash C. Identify the major sources and uses of cash Other things being equal, a firm will generally pay less in taxes when using A. FIFO B. LIFO C. Weighted Average B. LIFO Long-lived operating assets are capitalized and depreciated. Other long-lived assets such as intangibles are A. also depreciated B. amortized C. depleted B. amortized The best measure of a firm's sustainable income is A. net income B. income from continuing operations C. income before extraordinary items B. income from continuing operations