Question :
84.All of the following true of financial statement analysis report, : 1236534
84.All of the following are true of financial statement analysis report, except:
A.Contains ambiguities and qualifications.
B.Forces preparers to organize their reasoning and to verify the logic of analysis.
C.Serves as a method of communication to users.
D.Helps users and preparers to refine conclusions based on evidence from key building blocks.
E.Enables readers to see the process and rationale of analysis.
85.When a company’s activities include income-related events not part of normal, continuing operations, the complete income statement could potentially have the following sections:
A.Items from continuing operations and earnings per share for a corporation.
B.Income or loss from operating a discontinued segment for the current period.
C.The loss from disposing of the discontinued segment’s net assets.
D.Extraordinary items.
E.Continuing operations, discontinued segments, extraordinary items, changes in accounting principles, and earnings per share for a corporation.
86.Which of the following items is not likely an extraordinary item?
A.Write down of inventories.
B.Condemnation of property by the city government.
C.Loss of use of property due to a new and unexpected environmental regulation.
D.Loss due to an unusual and infrequent calamity.
E.Expropriation of property by a foreign government.
87.Financial statements with data for two or more successive accounting periods placed in columns side by side, sometimes with changes shown in both dollar amounts and percentages, are referred to as:
A.Period-to-period statements.
B.Controlling statements.
C.Successive statements.
D.Comparative statements.
E.Serial statements.
88.Horizontal analysis:
A.Is a method used to evaluate changes in financial data across time.
B.Is also called vertical analysis.
C.Is the presentation of financial ratios.
D.Is a tool used to evaluate financial statement items relative to industry statistics.
E.Evaluates financial data across industries.
89.The dollar change for a comparative financial statement item is calculated by:
A.Subtracting the analysis period amount from the base period amount.
B.Subtracting the base period amount from the analysis period amount.
C.Subtracting the analysis period amount from the base period amount, dividing the result by the base period amount, then multiplying that amount by 100.
D.Subtracting the base period amount from the analysis period amount, dividing the result by the base period amount, then multiplying that amount by 100.
E.Subtracting the base period amount from the analysis amount, then dividing the result by the base amount.
90.A company’s sales in Year 1 were $250,000 and in Year 2 were $287,500. Using Year 1 as the base year, the percentage change for Year 2 compared to the base year is:
A.87%.
B.100%.
C.115%.
D.15%.
E.13%.
91.Yeats Corporation’s sales in Year 1 were $396,000 and in Year 2 were $380,000. Using Year 1 as the base year, the percentage change for Year 2 compared to the base year is:
A.104%.
B.100%.
C.4%.
D.96%.
E.4.2%.
92.Ash Company reported sales of $400,000 for Year 1, $450,000 for Year 2, and $500,000 for Year 3. Using Year 1 as the base year, what were the percentage increases for Year 2 and Year 3 compared to the base year?
A.80% for Year 2 and 90% for Year 3.
B.88% for Year 2 and 80% for Year 3.
C.88% for Year 2 and 90% for Year 3.
D.112.5% for Year 2 and 125% for Year 3.
E.125% for Year 2 and 112.5% for Year 3.
93.In horizontal analysis the percent change is computed by:
A.Subtracting the analysis period amount from the base period amount.
B.Subtracting the base period amount from the analysis period amount.
C.Subtracting the analysis period amount from the base period amount, dividing the result by the base period amount, then multiplying that amount by 100.
D.Subtracting the base period amount from the analysis period amount, dividing the result by the base period amount, then multiplying that amount by 100.
E.Subtracting the base period amount from the analysis amount, then dividing the result by the analysis period amount.
