Series 65: Unit 7 Exam || with 100% Errorless Solutions.
All of the following are considered to be components of cash flow except
A. financing activities.
B. operating activities.
C. investing activities.
D. banking activities. correct answers Banking activities
An analyst wishing to check on the most recent financial performance of an SEC-registered
issuer would probably examine the
A. Schedule 13D.
B. Form 8-K.
C. Form 10-Q.
D. Form 10-K. correct answers Form 10-Q
When a company recognizes a sale only when payment is made, it is using which form of
accounting?
A. Double entry
B. Audited
C. Accrual
D. Cash correct answers Cash
Under SEC rules, Form 8-K must be filed
A. within 4 business days of the event.
B. within 15 business days of the event.
C. within 10 business days of the event.
D. promptly. correct answers Within 4 business days of the event
When an analyst adds back the current year's depreciation to the net income, she is computing
the company's
A. cash flow from investments.
B. earnings per share.
C. cash flow from operations.
D. net value of fixed assets. correct answers Cash flow from operations
Which of the following equations correctly shows the relationship between the items on a
company's balance sheet?
A. Assets = liabilities − net worth
B. Assets + liabilities = net worth
C. Assets = liabilities + stockholders' equity
, D. Assets = stockholders' equity − liabilities correct answers Assets = liabilities + stockholders'
equity
All of the following appear on a corporation's balance sheet as fixed assets except
A. real estate.
B. furniture.
C. computer equipment.
D. inventory. correct answers Inventory
A commentator on a cable news show mentions that the capital structure of the Lowveh
Corporation is highly leveraged. This means that the company
A. has very little default risk.
B. has significant long-term debt.
C. is in arrears on its cumulative preferred stock dividends.
D. has issued employee stock options. correct answers Has significant long-term debt
An analyst reviewing a company's financial statements would examine the footnotes to
A. discover any pending legal action against the company.
B. identify the authors of quoted information.
C. compute the net worth.
D. determine the average age of the receivables. correct answers Discover any pending legal
action against the company
An analyst wishing to view a good consolidated indicator of a business's cash inflow and outflow
would most likely ask to look at
A. the statement of cash flows.
B. the consolidated income statement.
C. the working capital.
D. the current ratio. correct answers The statement of cash flows
If a client has 100 shares of XYZ publicly traded stock and it undergoes a split, afterward the
client will have
A. a proportionately decreased interest in XYZ company.
B. no effective change in the value of the ownership share.
C. a greater role in the daily management of the company.
D. a proportionately increased interest in XYZ company. correct answers No effective change in
the value of the ownership share
All of the following corporate actions would have the effect of increasing the firm's net worth
except
All of the following are considered to be components of cash flow except
A. financing activities.
B. operating activities.
C. investing activities.
D. banking activities. correct answers Banking activities
An analyst wishing to check on the most recent financial performance of an SEC-registered
issuer would probably examine the
A. Schedule 13D.
B. Form 8-K.
C. Form 10-Q.
D. Form 10-K. correct answers Form 10-Q
When a company recognizes a sale only when payment is made, it is using which form of
accounting?
A. Double entry
B. Audited
C. Accrual
D. Cash correct answers Cash
Under SEC rules, Form 8-K must be filed
A. within 4 business days of the event.
B. within 15 business days of the event.
C. within 10 business days of the event.
D. promptly. correct answers Within 4 business days of the event
When an analyst adds back the current year's depreciation to the net income, she is computing
the company's
A. cash flow from investments.
B. earnings per share.
C. cash flow from operations.
D. net value of fixed assets. correct answers Cash flow from operations
Which of the following equations correctly shows the relationship between the items on a
company's balance sheet?
A. Assets = liabilities − net worth
B. Assets + liabilities = net worth
C. Assets = liabilities + stockholders' equity
, D. Assets = stockholders' equity − liabilities correct answers Assets = liabilities + stockholders'
equity
All of the following appear on a corporation's balance sheet as fixed assets except
A. real estate.
B. furniture.
C. computer equipment.
D. inventory. correct answers Inventory
A commentator on a cable news show mentions that the capital structure of the Lowveh
Corporation is highly leveraged. This means that the company
A. has very little default risk.
B. has significant long-term debt.
C. is in arrears on its cumulative preferred stock dividends.
D. has issued employee stock options. correct answers Has significant long-term debt
An analyst reviewing a company's financial statements would examine the footnotes to
A. discover any pending legal action against the company.
B. identify the authors of quoted information.
C. compute the net worth.
D. determine the average age of the receivables. correct answers Discover any pending legal
action against the company
An analyst wishing to view a good consolidated indicator of a business's cash inflow and outflow
would most likely ask to look at
A. the statement of cash flows.
B. the consolidated income statement.
C. the working capital.
D. the current ratio. correct answers The statement of cash flows
If a client has 100 shares of XYZ publicly traded stock and it undergoes a split, afterward the
client will have
A. a proportionately decreased interest in XYZ company.
B. no effective change in the value of the ownership share.
C. a greater role in the daily management of the company.
D. a proportionately increased interest in XYZ company. correct answers No effective change in
the value of the ownership share
All of the following corporate actions would have the effect of increasing the firm's net worth
except
