Question 1

XBRL is a global standard for internet communication mostly among day traders.

Accepted Answer

XBRL (eXtensible Business Reporting Language) is a global standard for business and financial reporting and is used by companies, regulators, and investors. Although it may be used by some day traders, it is not primarily for that purpose.

Question 2

Data analytics can help predict a company's revenue,earnings,and cash flow.

Accepted Answer

Data analytics can help forecast a company's future revenue, earnings, and cash flow by analyzing past trends and patterns in the data. This can assist in making informed business decisions and strategies.

Question 3

When reporting financial statements,detailed tagging of the numbers included in the footnotes by use of XBRL tags is also required.

Accepted Answer

This statement is true. When reporting financial statements, detailed tagging of the numbers included in the footnotes is required using XBRL tags. This allows for easier comparison and analysis of financial data by regulators, investors, and other stakeholders.

Question 4

Financial statement analysis is used by investors,analysts,auditors and other interested stakeholders to review and evaluate a company's financial statements and financial performance.

Accepted Answer

Financial statement analysis is indeed used by investors, analysts, auditors, and other stakeholders to assess a company's financial health and performance. This analysis can involve reviewing financial ratios, comparing financial statements over time, and benchmarking against industry peers, among other methods.

Question 5

The use of tags allows data to be slowly transmitted and received and it serves as an input into financial analysts valuing a company.It also contributes to an auditor finding areas where an error might occur,or regulators verifying if firms are in compliance with various regulations and laws (like SEC or IRS).

Accepted Answer

The answer of The use of tags allows data to...

Question 6

In filing its financial statements with the SEC,a company must tag five basic financial statements,which include a balance sheet,income statement,statement of comprehensive income,statement of cash flows and statement of stockholder's equity.

Accepted Answer

This statement is true. As per the mandate of the SEC, a company filing financial statements must tag five basic financial statements which include a balance sheet, income statement, statement of comprehensive income, statement of cash flows and statement of stockholder's equity. This tagging is essential for easier analysis, retrieval and comparison of information.

Question 7

There are basically four types of ratios: Liquidity,activity,solvency (or financing)and profitability ratios.

Accepted Answer

This statement is true. The four types of ratios are liquidity, activity, solvency (or financing), and profitability ratios.

Question 8

Information such as goodwill or long-term debt will likely change on a minute-by-minute basis in real-time financial reporting.

Accepted Answer

Information such as goodwill or long-term debt are typically reported on a periodic basis (e.g. quarterly or annually) and do not change on a minute-by-minute basis. Real-time financial reporting typically focuses on more dynamic information such as stock prices or currency exchange rates.

Question 9

The Securities and Exchange Commission mandates all publicly traded companies file financial statements prepared in accordance with U.S.GAAP.

Accepted Answer

The Securities and Exchange Commission (SEC) requires all publicly traded companies to file financial statements prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) to ensure transparency and comparability of financial information among companies.

Question 10

A major component of financial statement analysis is the use of ratio analysis.

Accepted Answer

Ratio analysis is a crucial tool in financial statement analysis, helping to evaluate a company's financial health by comparing different financial figures to derive meaningful insights about performance, liquidity, profitability, and other key metrics.

Question 11

The two types of standardized financial accounting are IFRS and U.S.GAAP.

Accepted Answer

IFRS (International Financial Reporting Standards) and U.S. GAAP (Generally Accepted Accounting Principles) are the two main types of standardized financial accounting used worldwide.

Question 12

The XBRL tag for cash is labeled Cash and is defined as follows: Amount of currency on hand as well as demand deposits with banks or financial institutions.

Accepted Answer

The statement is correct. The XBRL tag for cash is labeled "Cash" and is defined as the amount of currency on hand as well as demand deposits with banks or financial institutions.

Question 13

Artificial intelligence,machine learning,and sentiment analysis are three methods used to analyze publicly traded companies on Nasdaq and the NYSE to gain insight and track companies' business and financial operations.

Accepted Answer

Artificial intelligence, machine learning, and sentiment analysis are indeed three methods used to analyze publicly traded companies on Nasdaq and the NYSE to gain insight and track companies' business and financial operations. These methods involve using algorithms to analyze vast amounts of data and identify patterns, trends, and insights that can inform investment decisions.

Question 14

Many financial reporting systems within enterprise systems have general ledgers that are consistent with XBRL called XBRL-GL.

Accepted Answer

Many financial reporting systems within enterprise systems have general ledgers that are consistent with XBRL called XBRL-GL.

Question 15

Defining over 19,000 elements,the 2017 US GAAP Financial Reporting Taxonomy tags unique financial data to a component within the taxonomy.

Accepted Answer

The statement is correct. The 2017 US GAAP Financial Reporting Taxonomy does define over 19,000 elements and tags unique financial data to a component within the taxonomy.

Question 16

XBRL stands for eXtensible Business Reporting Linguistic.

Accepted Answer

Although XBRL does stand for "eXtensible Business Reporting Language", the correct term is "language" not "linguistic".

Question 17

Sometimes outside data vendors create standardized metrics to make the company reported XBRL data more comparable.

Accepted Answer

Outside data vendors can use standardized metrics to make the reported XBRL data of different companies more comparable. This can help analysts and investors make informed decisions based on the data.

Question 18

The XBRL taxonomy helps define and describe each key data element (such as cash or employee spending).

Accepted Answer

The answer of The XBRL taxonomy helps define and describe...

Question 19

Once numbers are input into a financial system using XBRL-GL,they are already tagged and able to be transmitted on the next day of business to interested users.

Accepted Answer

The answer of Once numbers are input into a financial...

Question 20

Ratio analysis is a tool used to evaluate relationships among different financial statement items to help understand a company's financial and operating performance.

Accepted Answer

Ratio analysis is indeed a tool used to evaluate relationships among different financial statement items, such as liquidity ratios, profitability ratios, and solvency ratios, to help understand a company's financial and operating performance.

Quiz 8: Using Financial Statement Data

XBRL is a global standard for internet communication mostly among day traders.

Data analytics can help predict a company's revenue,earnings,and cash flow.

When reporting financial statements,detailed tagging of the numbers included in the footnotes by use of XBRL tags is also required.

Financial statement analysis is used by investors,analysts,auditors and other interested stakeholders to review and evaluate a company's financial statements and financial performance.

In filing its financial statements with the SEC,a company must tag five basic financial statements,which include a balance sheet,income statement,statement of comprehensive income,statement of cash flows and statement of stockholder's equity.

There are basically four types of ratios: Liquidity,activity,solvency (or financing)and profitability ratios.

Information such as goodwill or long-term debt will likely change on a minute-by-minute basis in real-time financial reporting.

The Securities and Exchange Commission mandates all publicly traded companies file financial statements prepared in accordance with U.S.GAAP.

A major component of financial statement analysis is the use of ratio analysis.

The two types of standardized financial accounting are IFRS and U.S.GAAP.

The XBRL tag for cash is labeled Cash and is defined as follows: Amount of currency on hand as well as demand deposits with banks or financial institutions.

Artificial intelligence,machine learning,and sentiment analysis are three methods used to analyze publicly traded companies on Nasdaq and the NYSE to gain insight and track companies' business and financial operations.

Many financial reporting systems within enterprise systems have general ledgers that are consistent with XBRL called XBRL-GL.

Defining over 19,000 elements,the 2017 US GAAP Financial Reporting Taxonomy tags unique financial data to a component within the taxonomy.

XBRL stands for eXtensible Business Reporting Linguistic.

Sometimes outside data vendors create standardized metrics to make the company reported XBRL data more comparable.

The XBRL taxonomy helps define and describe each key data element (such as cash or employee spending).

Once numbers are input into a financial system using XBRL-GL,they are already tagged and able to be transmitted on the next day of business to interested users.

Ratio analysis is a tool used to evaluate relationships among different financial statement items to help understand a company's financial and operating performance.