Financial literacy exam 2 questions
with complete solutions
financial reporting rulings - ANS ✔✔What information would not be found in a firm's annual
report?
a. Notes to the financial statements.
b. Financial Reporting Rulings.
c. Auditor's report.
d. High and low stock prices.
SEC - ANS ✔✔Which agency requires the filing of Form 10-Ks, Form 10-Qs and Form 8-Ks?
a. FASB.
b. IASB.
c. SEC.
d. GAAP.
Foreign firms registered with the SEC may file reports based on IFRS. - ANS ✔✔3. Which of the
following statements is true?
a. Foreign firms registered with the SEC may file reports based on IFRS.
b. U.S. firms registered with the SEC may file reports based on IFRS.
c. The European Union requires firms to report based on GAAP.
d. Foreign firms registered with the SEC may file reports based on IFRS only if they reconcile all
amounts to GAAP.
Income Statement - ANS ✔✔Which financial statement presents the results of operations?
a. Balance sheet.
, b. Statement of financial position.
c. Income statement.
d. Statement of cash flows.
balance sheet - ANS ✔✔5. Which financial statement shows the assets, liabilities and
stockholders' equity of the firm on a particular date?
a. Statement of stockholders' equity.
b. Statement of cash flows.
c. Earnings statement.
d. Balance sheet.
Statement of Cash Flows - ANS ✔✔6. Which financial statement provides information about
operating, financing and investing activities?
a. Statement of financial position.
b. Statement of cash flows.
c. Statement of stockholders' equity.
d. Income statement.
a reconciliation of the beginning and ending balances of all accounts that appears in the
stockholders' equity section of the balance sheet - ANS ✔✔What information can be found on a
statement of stockholders' equity?
a. A reconciliation of the cash account and the retained earnings account.
b. A reconciliation of the beginning and ending balances of all accounts that appears in the
stockholders' equity section of the balance sheet.
c. A reconciliation of the operating, investing and financing activities of a firm.
d. A reconciliation of net profit or loss and the cash account.
with complete solutions
financial reporting rulings - ANS ✔✔What information would not be found in a firm's annual
report?
a. Notes to the financial statements.
b. Financial Reporting Rulings.
c. Auditor's report.
d. High and low stock prices.
SEC - ANS ✔✔Which agency requires the filing of Form 10-Ks, Form 10-Qs and Form 8-Ks?
a. FASB.
b. IASB.
c. SEC.
d. GAAP.
Foreign firms registered with the SEC may file reports based on IFRS. - ANS ✔✔3. Which of the
following statements is true?
a. Foreign firms registered with the SEC may file reports based on IFRS.
b. U.S. firms registered with the SEC may file reports based on IFRS.
c. The European Union requires firms to report based on GAAP.
d. Foreign firms registered with the SEC may file reports based on IFRS only if they reconcile all
amounts to GAAP.
Income Statement - ANS ✔✔Which financial statement presents the results of operations?
a. Balance sheet.
, b. Statement of financial position.
c. Income statement.
d. Statement of cash flows.
balance sheet - ANS ✔✔5. Which financial statement shows the assets, liabilities and
stockholders' equity of the firm on a particular date?
a. Statement of stockholders' equity.
b. Statement of cash flows.
c. Earnings statement.
d. Balance sheet.
Statement of Cash Flows - ANS ✔✔6. Which financial statement provides information about
operating, financing and investing activities?
a. Statement of financial position.
b. Statement of cash flows.
c. Statement of stockholders' equity.
d. Income statement.
a reconciliation of the beginning and ending balances of all accounts that appears in the
stockholders' equity section of the balance sheet - ANS ✔✔What information can be found on a
statement of stockholders' equity?
a. A reconciliation of the cash account and the retained earnings account.
b. A reconciliation of the beginning and ending balances of all accounts that appears in the
stockholders' equity section of the balance sheet.
c. A reconciliation of the operating, investing and financing activities of a firm.
d. A reconciliation of net profit or loss and the cash account.
