FIN 461 final exam questions with answers
// // // // // //
What //is //the //first //step //in //an //analysis //of //financial //statements?
(a) //Check //the //auditor's //report.
(b) //Check //references //containing //financial //information.
(c) //Specify //the //objectives //of //the //analysis.
(d) //Do //a //common-size //analysis
(c) //Specify //the //objectives //of //the //analysis.
What //is //a //creditor's //objective //in //performing //an //analysis //of //financial //statements?
(a) /
/To /
/decide /
/whether /
/the //borrower //has //the //ability //to //repay //interest //and //principal //on //borrowed //funds.
(b) //To //determine //if //the //firm //would //be //a //good //place //to //obtain //employment.
(c) //To //determine //the //company's //taxes //for //the //current //year.
(d) //To //determine //whether //an //investment //is //warranted //by //estimating //a //company's //future
//earnings //stream.
(a) /
/To /
/decide /
/whether /
/the //borrower //has //the //ability //to //repay //interest //and //principal //on //borrowed //funds.
, What //is //an //investor's //objective //in //financial //statement //analysis?
(a) /
/To /
/decide /
/whether /
/the //borrower //has //the //ability //to //repay //interest //and //principal //on //borrowed //funds.
(b) //To //determine //if //the //firm //would //be //a //good //place //to //obtain //employment.
(c) //To //determine //the //company's //taxes //for //the //current //year.
(d) //To //determine //whether //an //investment //is //warranted //by //estimating //a //company's //future
//earnings //stream.
(d) //To //determine //whether //an //investment //is //warranted //by //estimating //a //company's //future
//earnings //stream.
What //information //does //the //auditor's //report //contain?
(a) //The //results //of //operations.
(b) //An //unqualified //opinion.
(c) //An //opinion //as //to //the //fairness //of //the //financial //statements.
(d) //A //detailed //coverage //of //the //firm's //liquidity, //capital //resources, //and //operations.
(c) //An //opinion //as //to //the //fairness //of //the //financial //statements.
Which //of //the //following //would //be //helpful //to //an //analyst //evaluating //the //performance //of //a
//firm?
// // // // // //
What //is //the //first //step //in //an //analysis //of //financial //statements?
(a) //Check //the //auditor's //report.
(b) //Check //references //containing //financial //information.
(c) //Specify //the //objectives //of //the //analysis.
(d) //Do //a //common-size //analysis
(c) //Specify //the //objectives //of //the //analysis.
What //is //a //creditor's //objective //in //performing //an //analysis //of //financial //statements?
(a) /
/To /
/decide /
/whether /
/the //borrower //has //the //ability //to //repay //interest //and //principal //on //borrowed //funds.
(b) //To //determine //if //the //firm //would //be //a //good //place //to //obtain //employment.
(c) //To //determine //the //company's //taxes //for //the //current //year.
(d) //To //determine //whether //an //investment //is //warranted //by //estimating //a //company's //future
//earnings //stream.
(a) /
/To /
/decide /
/whether /
/the //borrower //has //the //ability //to //repay //interest //and //principal //on //borrowed //funds.
, What //is //an //investor's //objective //in //financial //statement //analysis?
(a) /
/To /
/decide /
/whether /
/the //borrower //has //the //ability //to //repay //interest //and //principal //on //borrowed //funds.
(b) //To //determine //if //the //firm //would //be //a //good //place //to //obtain //employment.
(c) //To //determine //the //company's //taxes //for //the //current //year.
(d) //To //determine //whether //an //investment //is //warranted //by //estimating //a //company's //future
//earnings //stream.
(d) //To //determine //whether //an //investment //is //warranted //by //estimating //a //company's //future
//earnings //stream.
What //information //does //the //auditor's //report //contain?
(a) //The //results //of //operations.
(b) //An //unqualified //opinion.
(c) //An //opinion //as //to //the //fairness //of //the //financial //statements.
(d) //A //detailed //coverage //of //the //firm's //liquidity, //capital //resources, //and //operations.
(c) //An //opinion //as //to //the //fairness //of //the //financial //statements.
Which //of //the //following //would //be //helpful //to //an //analyst //evaluating //the //performance //of //a
//firm?
