Question 1

Which of the following items may be included on all balance sheets at Yahoo! Finance,even though they may not be part of an individual company's balance sheet for that year?

Accepted Answer

Goodwill, Deferred Long-Term Asset Charges, and Treasury Stock are examples of items that may be included on a company's balance sheet, but they are not mandatory. However, Yahoo! Finance may include them on their balance sheets for all companies in order to provide a consistent format for comparison across different companies. The other options include items that may or may not be included on a company's balance sheet depending on the specific circumstances, and therefore are not consistently included on Yahoo! Finance's balance sheets.

Question 2

Describe some of the items often disclosed in the financial notes.

Accepted Answer

The answer of Describe some of the items often disclosed...

Question 3

Consider the information below from a firm's balance sheet for 2013 and 2014. $$\begin{array} { l r r r } 
\text { Current Assets } & 2014 & 2013 & \text { Change } \
\text { Cash and Equivalents } & \$ 1,561 & \$ 1,800 & - \$ 239 \
\text { Short-Term Investments } & \$ 1,052 & \$ 3,010 & - \$ 1,958 \
\text { Accounts Receivable } & \$ 3,616 & \$ 3,129 & \$ 487 \
\text { Inventories } & \$ 1,816 & \$ 1,543 & \$ 273 \
\text { Other Current Assets } & \$ 707 & \$ 601 & \$ 106 \
\text { Total Current Assets } & \$ 8,752 & \$ 10,083 & - \$ 1,331 \
\text { Current Liabilities } & & & \
\text { Accounts Payable } & \$ 5,173 & \$ 5,111 & \$ 62 \
\text { Short-Term Debt } & \$ 288 & \$ 277 & \$ 11 \
\text { Other Current Liabilities } & \$ 1,401 & \$ 1,098 & \$ 303 \
\text { Total Current Liabilities } & \$ 6,862 & \$ 6,486 & \$ 376
\end{array}$$ What is the Net Working Capital for 2014? What is it for 2013? What is the Change in Net Working Capital (NWC)? Assuming the Operating Cash Flows (OCF)are $7,155 and the Net Capital Spending (NCS)is $2,372,what is the Cash Flow from Assets?

Accepted Answer

The answer of Consider the information below from a firm's...

Question 4

Additional information on a company's financial condition found in the annual report includes special issues concerning its debt or contingent accounts but not information on the potential impact of a pending lawsuit.

Accepted Answer

Information on the potential impact of a pending lawsuit would be included in the annual report as a contingent liability.

Question 5

Which of the items below may be included on all income statements at finance.yahoo.com,even though they may not be part of an individual company's income statement for that year?

Accepted Answer

All of the options (A, B, and C) may be included on all income statements at finance.yahoo.com, even though they may not be part of an individual company's income statement for that year. Cost of Revenue is a common element that represents the direct costs associated with goods and services sold by a company. Minority Interest is the portion of earnings or losses in a subsidiary company not held by the parent company. Effect of Accounting Changes and Extraordinary Items refer to events that are uncommon or rare in nature and therefore may not occur in an individual company's income statement every year.

Question 6

If you query a company at finance.yahoo.com,you will see a menu that includes a section on financial statements and ________.

Accepted Answer

The menu at finance.yahoo.com provides the past three years of each of the primary financial statements, which includes the income statement, balance sheet, and cash flow statement. Option A is incorrect as only three years of financial statements are available. Option B is also incorrect as there is no cost for accessing financial statements on the website. Option D is irrelevant to the question.

Question 7

Cash flow from assets equals cash flow to creditors plus cash flow to stockholders.

Accepted Answer

This is the fundamental principle of cash flow statement, which follows the equation: Cash Flow from Assets = Cash Flow to Creditors + Cash Flow to Stockholders. It indicates the sources and uses of cash generated by a company's operations and how it is allocated to creditors and stockholders.

Question 8

Which of the sections below is NOT contained in the annual report?

Accepted Answer

The prediction of competitors' returns is not typically included in an annual report as it would require making assumptions about other companies, which is outside the scope of the report. The other sections mentioned are commonly included in an annual report.

Question 9

Which of the statements below is FALSE?

Accepted Answer

This statement is false. Officers of a company or others who have a fiduciary responsibility to the owners are not allowed to trade on their acquired private information about the company prior to the information being made public. This is considered insider trading and is illegal.

Question 10

The financial statement notes contain both the history of the company's performance and the fundamental relationship between the ways the information is formatted.This information should be made available to all simultaneously.

Accepted Answer

The financial statement notes provide historical data about a company's performance and detail the relationship between the formatting of the information. These notes are usually disclosed simultaneously to all stakeholders, such as shareholders, analysts, and regulators, to ensure transparency and accountability. Therefore, option A is true.

Question 11

The annual report of a company is ________.

Accepted Answer

The annual report of a company is typically printed and mailed to both owners/shareholders and the Securities and Exchange Commission (SEC). While it may also be available online, the traditional method involves physical mailings. Additionally, annual reports may include more detailed financial information than what is available online.

Question 12

The annual report is a regular activity of public firms and is sent to current owners (shareholders)and the SEC,and is also made available to prospective owners,financial analysts,and others interested in a company's performance.Name four of the major sections contained.

Accepted Answer

The answer of The annual report is a regular activity...

Question 13

The SEC has a site named EDGAR that ________.

Accepted Answer

EDGAR provides an on-line tutorial that will help new viewers find a company and its financial statements. Options A, B, and C are incorrect as they do not accurately describe the purpose of EDGAR.

Question 14

Notes to the financial statements help explain many of the details necessary to gain a more complete picture of the firm's ________.

Accepted Answer

Notes to the financial statements provide additional information and explanations about the numbers in the financial statements, which helps stakeholders understand the company's performance.

Question 15

Which of the statements below is FALSE?

Accepted Answer

The 10-K must be filed within 60 days after the end of the company's fiscal year, not one week.

Question 16

Which of the sections below is NOT contained in the annual report?

Accepted Answer

A prediction of gross national product is not typically contained in an annual report. The other sections listed are commonly included.

Question 17

The change in net working capital subtracts beginning net working capital from ending net working capital.

Accepted Answer

The formula for change in net working capital is ending net working capital minus beginning net working capital.

Question 18

The report filed annually with the SEC is known as the 10-K Report.It contains the annual report as well as additional information about company history,organizational structure,subsidiaries,and equity holdings.

Accepted Answer

The 10-K Report is an annual report filed with the SEC that contains information about a company's financial performance, as well as details about its organizational structure, subsidiaries, equity holdings, and other relevant information.

Question 19

Notes to the financial statements help explain many of the details necessary to gain a more complete picture of the firm's performance.Some of the items often disclosed in the financial notes includes which of the following?

Accepted Answer

All of these items are often disclosed in the financial notes. Notes provide additional information on a company's financial condition, how specific items were computed, and the methods used to prepare the financial statements.

Question 20

The 10-K is a quarterly report that must be filed within 60 days after the end of the company's fiscal year.

Accepted Answer

The 10-K is an annual report that must be filed within 60 days after the end of the company's fiscal year, not quarterly.

Quiz 2: Financial Statements

Which of the following items may be included on all balance sheets at Yahoo! Finance,even though they may not be part of an individual company's balance sheet for that year?

Describe some of the items often disclosed in the financial notes.

Additional information on a company's financial condition found in the annual report includes special issues concerning its debt or contingent accounts but not information on the potential impact of a pending lawsuit.

Which of the items below may be included on all income statements at finance.yahoo.com,even though they may not be part of an individual company's income statement for that year?

If you query a company at finance.yahoo.com,you will see a menu that includes a section on financial statements and ________.

Cash flow from assets equals cash flow to creditors plus cash flow to stockholders.

Which of the sections below is NOT contained in the annual report?

Which of the statements below is FALSE?

The financial statement notes contain both the history of the company's performance and the fundamental relationship between the ways the information is formatted.This information should be made available to all simultaneously.

The annual report of a company is ________.

The annual report is a regular activity of public firms and is sent to current owners (shareholders)and the SEC,and is also made available to prospective owners,financial analysts,and others interested in a company's performance.Name four of the major sections contained.

The SEC has a site named EDGAR that ________.

Notes to the financial statements help explain many of the details necessary to gain a more complete picture of the firm's ________.

Which of the statements below is FALSE?

Which of the sections below is NOT contained in the annual report?

The change in net working capital subtracts beginning net working capital from ending net working capital.

The report filed annually with the SEC is known as the 10-K Report.It contains the annual report as well as additional information about company history,organizational structure,subsidiaries,and equity holdings.

Notes to the financial statements help explain many of the details necessary to gain a more complete picture of the firm's performance.Some of the items often disclosed in the financial notes includes which of the following?

The 10-K is a quarterly report that must be filed within 60 days after the end of the company's fiscal year.