Accounting Financial statements analysis 2

33.Which is true when reading financial statements?

A.Balance Sheet amounts represent asset, liability and owner equity changes for the reporting period.

B.Statement of Shareholders' Equity amounts represent cash balances at the end of the reporting period.

C.Statement of Cash Flows amounts represent cash inflows and outflows for the current reporting period.

D.Income Statement amounts represent revenue and expense changes from the prior period.

34.Why is the amount for operating income important?

A.Operating income provides a basis for assessing the wealth of the firm.

B.Operating income includes all operating revenues and expenses, as well as, interest and taxes related to operations.

C.This figure provides a basis for assessing the success of a company apart from its financing and investing activities and separate from its tax status.

D.This is the figure needed for calculating income taxes.

Question 36 If the column cell is filled with ######### signs, then the error made was:

A.You referenced an invalid cell.

B.You tried to divide by zero.

C.Your column width is not wide enough.

D.Your text is not valid.

Question 37 What is the keyboard shortcut to freeze panes within a worksheet?

A.ALT + F + W + V

B.ALT + A + W + T

C.ALT + W + F + F

D.ALT + W + S

Question 38 The company name "Apple Inc." is in cell A3. Use the concatenate function to write the equation which dynamically shows the following statement: Financial Statement Analysis - Apple Inc.

A.=CONCATENATE('Financial Statement Analysis - ',A3)

B.=CONCATENATE("Financial Statement Analysis - ",A3)

C.=CONCATENATE("Financial Statement Analysis", - ,A3)

D.=CONCATENATE('Financial Statement Analysis', - ,A3)

Question 39 Which of the following statements is incorrect?

A.The accounting equation is Assets = Liabilities + Owners' Equity

B.Noncontrolling interest is part of total shareholders' equity

C.All liabilities are debt

D.All debt are liabilities

Question 41 Income Statement - which of the following is incorrect?

A.The income statement reports the difference between revenues and expenses.

B.A multi-step presentation highlights the differences between short-term and long-term revenues and expenses.

C.A multi-step presentation highlights gross profit, operating expenses, operating income, earnings before taxes and net income.

D.We can discuss the income statement line items in terms of whether they are operating or nonoperating.

Question 42 Which of these companies best exemplifies the use of the network effect?

A.J C Penney

B.Chipotle

C.eBay

D.Best Buy

E.Southwest Airlines

Question 43 Onthe income statement, net income (profits) tell you:

A.The difference between how much a company owns and how much it owes.

B.The difference between how much a company recorded as revenues and expenses during a given period.

C.The difference between how much a company owns and how much it spend during a given period.

D.The difference between how much cash a company received and how much cash it paid out during a period of time.