Question 1

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

Accepted Answer

Prediction of competitors' returns is not typically included in an annual report, as it is speculative and not based on factual information about the company's performance. The other sections listed (Company highlights, President's letter to the shareholders, and Description of the company's activities) are commonly found in an annual report.

Question 2

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 actually an annual report that must be filed within 60 days after the end of the company's fiscal year, not a quarterly report.

Question 3

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 do indeed contain the history of the company's performance and the fundamental aspects of how the information is formatted. It is important for all investors and stakeholders to have access to this information simultaneously.

Question 4

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. It does not provide on-line access to financial reports at a cost or offer investors free advice on what stocks to pick. It also does not provide an on-line tutorial on how to understand the government's role in affecting stock prices.

Question 5

Consider the information below from a firm's balance sheet for 2013 and 2014.
Current Assets 2014 2013 Change
Cash and Equivalents $1,561 $1,800 -$ 239
Short-Term Investments $1,052 $3,010 -$1,958
Accounts Receivable $3,616 $3,129 $ 487
Inventories $1,816 $1,543 $ 273
Other Current Assets $ 707 $ 601 $ 106
Total Current Assets $8,752 $10,083 -$1,331
Current Liabilities
Accounts Payable $5,173 $5,111 $ 62
Short-Term Debt $ 288 $ 277 $ 11
Other Current Liabilities $1,401 $1,098 $303
Total Current Liabilities $6,862 $6,486 $ 376
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 6

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 - Beginning Net Working Capital. Therefore, subtracting beginning net working capital from ending net working capital would give us the change in net working capital.

Question 7

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 statement is true. The 10-K Report is filed annually with the SEC and contains detailed information about the company including its history, organizational structure, subsidiaries, equity holdings, and financial performance.

Question 8

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

Accepted Answer

This is a fundamental equation in finance known as the "cash flow identity" or "cash flow statement equation." It states that cash flow from operating activities (or "cash flow from assets") must equal cash flow to creditors (interest payments and principal repayments) plus cash flow to stockholders (dividend payments and share repurchases).

Question 9

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 about the financial performance of the firm, including details on accounting policies, contingencies, and other significant factors that may impact the financial statements. This helps stakeholders gain a better understanding of the company's overall performance.

Question 10

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

Additional information on a company's financial condition found in the annual report may include information on the potential impact of a pending lawsuit, as well as special issues concerning its debt or contingent accounts.

Question 11

Which of the statements below is FALSE?

Accepted Answer

This statement is false because officers of a company or others who have a fiduciary responsibility to the owners cannot trade on their acquired private information about the company prior to the information being made public. It is a violation of insider trading laws.

Question 12

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 included in the financial notes to help provide more information and context about a company's financial performance.

Question 13

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 14

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

Accepted Answer

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

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

Accepted Answer

All of the items listed (Cost of Revenue, Minority Interest, Effect of Accounting Changes, and Extraordinary Items) are typically included on income statements across various companies and industries. Therefore, they may be included on income statements at yahoo.finance.com, even if an individual company's income statement does not show all of these items for that particular year.

Question 17

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

Accepted Answer

The passage states that the menu on yahoo.finance.com includes a section on financial statements and provides the past three years of each of the primary financial statements. Therefore, option C is the best choice. Option A is incorrect as it states that six years of financial statements are provided, which is not what the passage says. Option B is also incorrect as it suggests that online access to limited information is available at a cost, while the passage gives no such information. Option D is also incorrect as it mentions an online tutorial on how to understand government's role, which is not relevant to the information provided in the passage.

Question 18

The annual report of a company is ________.

Accepted Answer

The annual report of a company is typically printed and mailed to owners and the SEC. It may also be available online, but this option is not always provided by all companies and the online version may not be as detailed as the printed version.

Question 19

An increase in borrowing from long-term debt holders is a source of cash.

Accepted Answer

Borrowing from long-term debt holders typically involves obtaining a loan or issuing bonds that provide a source of cash as the borrower receives the loan proceeds or bond proceeds from investors.

Question 20

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

Accepted Answer

A prediction of gross national product is not typically included in an annual report, which primarily focuses on a company's financial performance and strategy. The other sections listed (notes to financial statements, management's analysis of the company's performance, and auditor's report) are common components of an annual report.

Quiz 2: Financial Statements

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

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

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 SEC has a site named EDGAR that ________.

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.

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

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

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 statements below is FALSE?

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 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.

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

Which of the statements below is FALSE?

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

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

The annual report of a company is ________.

An increase in borrowing from long-term debt holders is a source of cash.

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