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WorksheetsFSA Intro 1
Total questions: 20
Worksheet time: 10mins
Providing information about the performance and financial position of companies so that users can make economic decisions best describes the role of_____________
Auditing
Accounting
Financial reporting
Financial statement analysis
A company’s current financial position would best be evaluated using the_______________________
Balance sheet
Income statement
Cash flow
Change in equity
Which of the following best describes the role of financial statement analysis?
To provide information on a company's financial performance and position
To use a company's financial report to evaluate its past present and potential performance
To determine whether the company should close its operations
None of these
A financial statement that shows what a business owns and owes at a particular point in time is_________
A cash flow statement
The bank statement for the business
A balance sheet
A statement of retained earnings
Which of the following statements about the primary purpose of financial reporting is the most correct?
Provides information that can help with decision-making.
The individual needs of users can be satisfied by tailoring of financial reports
Enables accountability since managers would have to account for resources used
A statement of retained earnings identified a range of existing and potential users dependant on financial statements to make decisions
The statement of cash flows clarifies cash flow according to
Operating and non-operating flows
Inflow and outflow
Investing and non-operating flows
operating, investing, and financing activities
Cash flow statement is based upon___________
Accrual basis of accounting
Cash basis of accounting
Accounting equation
Matching concept
When assets are subtracted from liabilities, it will be equal to
Capital
Net Income
Working capital
Goodwill
Which of the following is not a component of the statement of changes in equity?
Other comprehensive income
Treasury stock
Retained earnings
All the above
The Management Discussion and Analysis (MD&A) portion of the financial disclosure is required to discuss all of the following EXCEPT:
Capital resources and liquidity.
Expected effects of marketplace events.
Results of operations.
Financial position as on the last day
Which of the following statements regarding footnotes to the financial statements is least accurate?
Footnotes may contain information regarding contingent losses.
Footnotes are not audited
Footnotes provide information about assumptions and estimates used by management.
Footnotes are supplemental points included with the financial statements
Accounting methods, estimates, and assumptions used in preparing financial statements are found
Footnotes
Auditor’s report.
Proxy statement
None of these
Information about material events and uncertainties would best be found in
Footnotes
Proxy statement.
MD & A
None of these
Once the data have been processed, the next step critical to any analysis is to _________ the output.
interpret
inform
include
None of these
Collect input data in FSA refers to
obtaining an understanding of the company’s business, financial performance, and financial position
A simple collection of data
Critical Analysis
None of these
Legal proceedings will be presented in the section of?
Financial Notes
Additional Report
Separate Report
None of these
Which of the following is an independent auditor least likely to do with respect to a company's financial statements?
Prepare and accept responsibility for them.
Provide an opinion concerning their fairness and reliability.
Confirm assets and liabilities contained in them
None of these
Rearrangement of figures is necessary for ………… & …………
Analysis & interpretation
preparing the report and informing
auditing and control
None of these
The questions "Who is the intended audience? What is the end product?" are under which point of the financial statement analysis framework
Articulate the purpose and context of the analysis.
Follow Up
Collect Input Data
None of these
Performing sensitivity analyses falls under:
Processing of Data
Collection of Data
Classification of Data
None of these
