Since $2003,$ how does the SEC require firms to report their non$-$GAAP inems?

a$)$ Required to display the most directly comparable GAAP meavure

b$)$ Required to provide reasons why they included the non$-$GAAP measures

c$)$ Required to remove all the non$-$GAAP measures from all their statememts.

d$)$ There is no requirement in place with respect to non$-$GAAP messures.

"Litigation losses. When it becomes "probable" that a cost will be incurred, both US GAAP and

IFRS require expense recognition, even though a legal liability may not be incurred until a future

date." This is an example of

a$)$ Aggressive

b$)$ Conservatism

c$)$ Realism

d$)$ Traditionalism

For an analyst who wants to project performance by conducting a top$-$down approach, what is

the first step?

a$)$ Looking at the firm's $10-K$ report

b$)$ Project industry sales

c$)$ Project market share for the company

d$)$ Project sales of competitor

All of these are limitations of back$-$testing except:

a$)$ Look$-$ahead bias

b$)$ Survivorship bias

c$)$ Efficiency bias

d$)$ Data$-$snooping bias

In transactions with associates, what do we call when the deal is from investor to associate?

a$)$ Consolidation

b$)$ Upstream

c$)$ Downstream

d$)$ M&A

Which of the accounting standards allows the reversal of impairment losses?

a$)$ US GAAP

b$)$ IFRS

c$)$ Both standards

d$)$ Neither standards

Accounting choices such as decreasing expenses, and$/$or reducing the level of debt reported on

the balance sheet are examples of

choice accounting.

a$)$ Conservative

b$)$ Smoothing

c$)$ Ambitious

d$)$ Aggressive

Voxin Inc. is a German firm that follows IFRS for its reporting. This year they found the

"recoverable amount" of its long$-$term investment to go below the carrying amount. What

account should they recognize?

a$)$ Depreciate the bond using the double$-$declining method.

b$)$ Sell the bond and record revenue.

c$)$ Record an impairment charge.

d$)$ Record an account receivable.

In periods of changing prices, the

cost assumption will provide a more current picture