FINANCIAL STATEMENT ANALYSIS AND
VALUATION EXAM SCRIPT COMPLETE
QUESTIONS AND ANSWERS GRADED A+
●● Role of financial reporting
Answer: showing financial performance to interested parties (ex.
investors, creditors) by preparing and presenting financial statements
●● Role of financial statement analysis
Answer: - Using info in a company's financial statements, along with
other relevant information, to make economic decisions (ex. securities
valuation, acquisitions, creditworthiness)
- Evaluating a company's past performance and current financial
position to form opinions about risk factors and a firm's ability to earn
profits and generate cash flow in the future
●● Standard-setting bodies
Answer: Financial Accounting Standards Board (FASB): USA
- US GAAP
International Accounting Standards Board (IASB/IFRS): Most other
countries
, ●● Financial Reporting Requirements and Regulation
Answer: - Securities and Exchange Commissions (SEC)= USA
- Member states of the European Union each have their regulators- some
regulations at the EU level
- International Organization of Securities Commissions (IOSCO):
international coordination of securities and futures regulations, over 100
member countries, benchmark principle for regulators
●● SEC Filings/Forms
Answer: - S1: registration of securities for public sale
- 10K: annual report (similar to shareholder report)
-- MUST BE AUDITED
- 10Q: Quarterly report
-- Does NOT have to be audited
- Def 14AK Proxy Statements
- 8K: material events
VALUATION EXAM SCRIPT COMPLETE
QUESTIONS AND ANSWERS GRADED A+
●● Role of financial reporting
Answer: showing financial performance to interested parties (ex.
investors, creditors) by preparing and presenting financial statements
●● Role of financial statement analysis
Answer: - Using info in a company's financial statements, along with
other relevant information, to make economic decisions (ex. securities
valuation, acquisitions, creditworthiness)
- Evaluating a company's past performance and current financial
position to form opinions about risk factors and a firm's ability to earn
profits and generate cash flow in the future
●● Standard-setting bodies
Answer: Financial Accounting Standards Board (FASB): USA
- US GAAP
International Accounting Standards Board (IASB/IFRS): Most other
countries
, ●● Financial Reporting Requirements and Regulation
Answer: - Securities and Exchange Commissions (SEC)= USA
- Member states of the European Union each have their regulators- some
regulations at the EU level
- International Organization of Securities Commissions (IOSCO):
international coordination of securities and futures regulations, over 100
member countries, benchmark principle for regulators
●● SEC Filings/Forms
Answer: - S1: registration of securities for public sale
- 10K: annual report (similar to shareholder report)
-- MUST BE AUDITED
- 10Q: Quarterly report
-- Does NOT have to be audited
- Def 14AK Proxy Statements
- 8K: material events
