Daily Archives: October 14, 2015

Financial Reporting Test

1. Which of the following is not a fundamental of accounting? Answers: Materiality Timeliness Matching Magnitude 2. What does the indirect method of preparing the cash flow statement effectively accomplish? Answers: It keeps the use of cash vague so the reader cannot tell the exact use It is a less detailed summary version of use [...]

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Financial Forecasting Test

1. A company has a post-money valuation of $500,000. The last investor put in $100,000. The pre-money valuation before the investor came in was _________________. Answers: $400,000 $600,000 $1,000,000 $100,00 2. Why does a Balance Sheet balance (assets = liabilities + equity)? Answers: It is required by law. Companies force it to balance. Accounting is [...]

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Financial Analysis Test

1. What is financial analysis? Answers: Comparing ratios using numbers from the income statement and balance sheet Determining a company's financing needs Determining the pricing model for the next year Determining the company's stock price 2. Why would a company calculate their Risk Adjusted Return on Capital? Answers: Is required by the SEC Auditors will [...]

By | October 14th, 2015|Upwork Finance and Accounting|0 Comments