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CFIN 1-7 Quiz Questions with questions and answers (download to pass).
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CFIN 1-7 Quiz Questions with questions and answers (download to pass).
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CFIN 1-7 Quiz Questions withquestions and answers
(download to pass)
Which of the following statements fulfills a firm's requirement to disclose
its earnings for a period?
Select one:
a. Statement of Financial Position
b. Income Statement
c. Inventory Statement
d. Cash Flow Statement - answer B. Income Statement
Comprehensive Income of the period is shown on the
Select one:
a. Income Statement
b. Balance Sheet
c. Statement of Retained Earnings
d. None of the above - answer A. Income Statement
The P/E ratio indicates the stock market's opinion of a company's
prospects for growth and earnings as well as the market's perception of
the firm's risk.
Select one:
a. TRUE
b. FALSE - answer A. True
Matching refers to including all expenses incurred to realize the revenues
reported.
Select one:
,a. TRUE
b. FALSE - answer A. True
Net Income is a part of
Select one:
a. Cash flow from operating expenses
b. Cash flow from investing activities
c. Cash flow from debt activities
d. None of the above - answer a. Cash flow from operating expenses
The statement that shows all investments in the company and all the
distributions during a reporting period is called
Select one:
a. the cash flow statement.
b. the working capital statement.
c. the sources and uses of funds statement
d. the statement of owner's equity.
e. none of the above. - answer d. the statement of owner's equity
The "snapshot in time" statement is
Select one:
a. the balance sheet
b. the cash flow statement
c. the income statement
d. none of the above - answer A. the balance sheet
Investments by and distribution to owners for the period is reflected on
the
Select one:
a. Income Statement
, b. Balance Sheet
c. Statement of Retained Earnings
d. None of the above - answer c. Statement of Retained Earnings
Generally speaking, large increases in sales by a company require more
investments in inventories and receivables.
Select one:
a. TRUE
b. FALSE - answer A. True
The statement which records a firm's financial position on a single day is
called the income statement.
Select one:
a. TRUE
b. FALSE - answer B. False
It is a balance sheet, not income statement.
The final step in pro formas is to:
A. Test Assumptions
B. Compare the results of the sensitivity analysis to the decision-makers'
risk tolerance in the current situation
C. Create the best and worst case scenarios
D. A and C
E. A, B, and C - answer B. Compare the results of the sensitivity analysis
to the decision-makers' risk tolerance in the current situation
When projected assets are less than projected liabilities and equity, the
firm will have
Select one:
a. excess retained earnings
b. excess cash
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