|
9. There are two measures of EPS required on the income statement. What are they, and what’s the difference between them?
| a. |
Primary EPS and Fully diluted EPS – treasury stock being the component difference |
| b. |
Primary and Basic EPS – convertible debt being the difference |
| c. |
Basic EPS and Diluted EPS – with delutive stock options being the component difference |
| d. |
None of the above is correct |
10. Cash flow per share is defined by GAAP as:
| a. |
Net income plus depreciation divided by shares outstanding |
| b. |
Cash flow from operations on the cash flow statement divided by shares outstanding |
| c. |
The change in cash in the balance sheet divided by the shares outstanding |
| d. |
There is no GAAP definition. Analysts/companies devise one to suite their own purposes |
11. Examples of impaired assets that would require the company to record a charge over the appropriate upcoming periods include:
| a. |
Uncollectible receivables |
| b. |
Equipment used for an abandoned product line |
| c. |
Obsolete inventory |
| d. |
Investments/securities that have declined in value |
| e. |
Goodwill from a bad acquisition |
| f. |
All of the above |
12. The leading cause of financial reporting RESTATEMENTS is:
| a. |
The SEC changing the rules requiring retroactive adoption |
| b. |
The FAST/EITF issuing a new rule |
| c. |
Improper revenue accounting |
| d. |
Improper inventory accounting |
13. Companies are required to break out the financial results of their business “segment” and the geographies they operate in. How are “segments” defined?
| a. |
By product classification |
| b. |
By industries the company operates in |
| c. |
By the groupings that management uses to report the results internally |
| d. |
By specific SEC definitions of industry segments |
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