buad 195 - ch. 2

The financial statement that reflects the profitability of a firm over a period of time is the:

• balance sheet

• income statement

• statement of cash flows

• income tax return

The statement of cash flows identifies the sources and uses of the firm's cash:

• at the beginning of the time period.

• at the end of the time period.

• between the beginning and the year end of the fiscal period.

• The mid-point of the year.

The statement of cash flows is composed of cash flows from operations, cash flows from financing activities and:

• Free cash flow.

• Cash flow from changes in working capital.

• Cash flow from amortization.

• Cash flow from investing activities.

The balance sheet assets may include all except:

• Contingent liabilities

• Machine

• Property

• Account receivable

Amortization represents an attempt to:

• increase the tax liability of the firm.

• reduce the net income of the firm.

• reduce the firm's cash flows.

• allocate the initial cost of an asset over its useful life.

IFRS oversees the accounting standards for:

• private companies only.

• publicly traded companies.

• international businesses only

• governments only.

For private companies, the application of accounting rules under IFRS is:

• Compulsory.

• Illegal.

• Optional.

• A statutory requirement.

All of the following are tax-deductible expenses to a firm except:

• Income tax

• Depreciation

• Interest expense

• Common stock dividend

IFRS requires public companies to report assets at:

• book value.

• expected residual value.

• market value.

• inflated value.

Which organization has brought Canada and US to a common format and valuation in reporting the financial statements for the public companies?

• CIA

• IFRS

• CICA

• IROC