CPP - Certified Payroll Professional fall 2024 practice exam questions with answers

Financial Statement Analysis Final Exam |\ |\ |\ |\ |\




questions with answers |\ |\




What best describes the role of financial statement analysis?
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Form expectations about a company's future performance and
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financial position. |\




The income statement is best used to evaluate a company's
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__________
Financial performance. Financial results from business activities.
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Unaudited information about significant events and uncertainties
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affecting a company's liquidity, capital resources, and results of
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operations can be found in what section of public company's
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filings?
MD&A (management discussion and analysis)
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According to the financial statement analysis framework, what is
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the first step to take prior to undertaking any analysis?
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Articulate the purpose and context of the analysis
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Why are the notes that accompany the financial statements
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required?
*Provide information necessary to understand the financial
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statements
-Support what you put in the financial statements.
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-Basis on which they report the information.
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Under US GAAP, assets on the balance sheet are generally listed
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in order of __________
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liquidity

, US generally accepted accounting principles (under US GAAP) are
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currently developed by which entity?
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Financial Accounting Standards Board (FASB) |\ |\ |\ |\




What is the objective of financial reporting?
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To provide information useful to users in making decisions about
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providing resources relating to equity and debt instruments.
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The assumption that the effects of transactions and other events
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are recognized when they occur, not when the cash flows occur,
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is called___________
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Accrual basis accounting |\ |\




What does the revenue recognition principle state?
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Revenue should be recognized in the period earned independent
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of cash flows
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During periods of rising prices, which inventory method would
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provide the lowest cost of goods sold (COGS) |\ |\ |\ |\ |\ |\ |\




FIFO
Cash received from customers for products to be delivered in the
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future is recorded as: |\ |\ |\




asset and liability |\ |\




Recording of non-cash expenses during a period including |\ |\ |\ |\ |\ |\ |\ |\


depreciation and amortization, warranty expense and allowance |\ |\ |\ |\ |\ |\ |\


for doubtful accounts best represents the which principle?
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Matching principle |\




Apple reported different weighted-average shares to compute its
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basic and diluted earnings per share on its consolidated
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statement of operations for the year ended December 31, 2022. |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


What must be true about the diluted and basic eps.
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Basic EPS is higher than its diluted EPS
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