Fin Statements Module 1 Questions

United Van Lines purchased a truck with a list price of $250,000 subject to a 6% discount if paid within 30 days. United Van Lines paid within the discount period. It paid $4,000 to obtain title to the truck with the state and an $800 license fee for the first year of operation. It paid $1,500 to paint the firm's name on the truck and $2,500 for property and liability insurance for the first year of operation. What acquisition cost of this truck should United Van Lines record in its accounting records? A) 240,500 B) 241,300 C) 258,800

A) 240,500 ($250,000 invoice price - $15,000 cash discount + $4,000 for the title + $1,500 to paint company's name on the truck).

Can you download META's latest 10-K statement and tell me what's META's total current assets for fiscal 2021? A) 66,666 million B) 75,670 million C) 165,987 million D) I don't know where to find it

A) 66,666 million

Which of the following companies would you expect to report significant amounts of cash provided by financing activities? A) A yet-to-be-profitable biotechnology company B) A mature company operating in the oil refinery industry C) A profitable established company in the retail industry D) A large multinational pharmaceutical company

A) A yet-to-be-profitable biotechnology company

Can you download MSFT's revenue from 2013 to 2022 from Mergent and forecast the revenue growth for 2023 using Linear Regression (Linear forecast)? A) 15% B) 11% C) 20% D) Don't know how to solve it

How: Go to Mergent online Search Microsoft on left Go to company financials Drop down and go to income statement Drop down click 10 yrs Copy total revenue and paste it on excel Put respective years above each revenue Copy all and paste (format it vertically) Add new column and call it "Rev growth" "(B2-B3)/B3"... do it on all (Rev yr2 - rev yr1/rev yr1) Use % button on all Type linear.regression(2023, B:?-B:? [all the percentages]) Done

Can you download MSFT's revenue from 2013 to 2022 from Mergent and forecast the revenue growth for 2023 using Simple Moving Average (n=9)? A) 10.2% B) 11.31% C) 13.56% D) Don't know how to calculate it

B) 11.31% How: Go to Mergent online Search Microsoft on left Go to company financials Drop down and go to income statement Drop down click 10 yrs Copy total revenue and paste it on excel Put respective years above each revenue Copy all and paste (format it vertically) Add new column and call it "Rev growth" "(B2-B3)/B3"... do it on all (Rev yr2 - rev yr1/rev yr1) Use % button on all Use simple moving average (average) of all 9 yrs. (you can also do this on excel) 11.31%

A company in the growth phase of its product life cycle will normally have which of the following patterns of cash flows? A) Negative cash flows from operations, negative cash flows from investing and positive cash flows from financing. B) Negative or positive cash flows from operations, negative cash flows from investing and positive cash flows from financing. C) Positive cash flows from operations, positive cash flows from investing and positive cash flows from financing.

B) Negative or positive cash flows from operations, negative cash flows from investing and positive cash flows from financing.

Which of the following statement is false? A) non-U.S. firms in the US can file financial statements under IFRS format B) U.S. firms can file financial statements under both GAAP and IFRS format C) U.S. firms can file financial statements under GAAP format

B) U.S. firms can file financial statements under both GAAP and IFRS format

Can you find the adjusted close price of META on July 12, 2022? Select an answer and submit A) 195.20 B) 212.53 C) 163.27

C) 163.27

Which of the following is not an income recognition approach? A) Recognize changes in economic value on the balance sheet and income statement when they are realized B) Recognize changes in economic value on the balance sheet and income statement when they occur C) Economic Value Changes Recognized on the Income Statement When They Occur but Recognized on the Balance Sheet When Realized D) Economic Value Changes Recognized on the Balance Sheet When They Occur but Recognized on the Income Statement When Realized

C) Economic Value Changes Recognized on the Income Statement When They Occur but Recognized on the Balance Sheet When Realized

Normally, cash flows from operations will peak during which phase of the product life cycle? A) Introduction B) Growth C) Maturity D) Decline

C) Maturity

Which of the following is the least liquid asset? A) Accounts Receivable B) Inventory C) Property, Plant, and Equipment D) Current Assets

C) Property, Plant, and Equipment

A firm's cash flows will differ from net income each period for all of the following reasons except: A) cash receipts from customers do not necessarily occur in the same period in which a firm recognizes revenues. B) cash expenditures to employees, suppliers, and governments do not necessarily occur in the same period in which a firm recognizes expenses. C) the company is sustaining losses each period. D) cash inflows and outflows that pertain to investing and financing activities do not immediately flow through the income statement.

C) the company is sustaining losses each period.

Can you find out what is META's total stockholders equity for fiscal 2021? Select an answer and submit. A) 159,216 million B) 41,108 million C) 165,987 million D) 124,879 million

D) 124,879 million

Which of the following is not a current asset? A) Accounts Receivable B) Cash C) Prepaid Expenses D) Investments

D) Investments

Which of the following asset is measured in current market value? A) Land B) Equipment C) Long Term Receivables D) Stock Investment

D) Stock Investment

Under U.S. GAAP and IFRS, firms cannot delay the gain or loss in net income for following item: A) Foreign currency translation gains and losses. B) Derivatives designated as hedges of future cash flows. C) Certain adjustments to pension and post-retirement benefit obligations. D) equity investment

D) equity investment

Which of the following is not associated with Statement of Cash Flow: A) helps you identify the Economic Characteristics of a Business B) helps you identify the Strategy of the Firm C) helps you value the Firm D) gives you a snapshot of the company's financial position

D) gives you a snapshot of the company's financial position

U.S. GAAP, IFRS, and other major accounting standards are best characterized as: A) historical accounting models B) current value accounting models C) acquisition cost accounting models D) mixed attribute accounting models

D) mixed attribute accounting models