FSA Exam 1 MCQ exam with correct answers 2024.

Operating activities are: a. value-creating activities b. value distributing activities - answer-a. value-creating activities Financial activities are: a. value-creating activities b. value distributing activities - answer-b. value distributing activities Investing in research and development is a. an operating activity b. a financial activity - answer-a. an operating activity Investing in available-for-sale securities is a. an operating activity b. a financial activity - answer-b. a financial activity A firm that pays higher dividends creates a higher value than a firm that pays lower dividends. T/F - answer-False A firm that generates higher free cash flow creates a higher value than a firm that generates lower free cash flow. T/F - answer-False SE(t-1) = 2351 CI(t) = -235 d(t) = ? SE(t) = 2073 - answer-d(t) = 43 SE is: a. cash b. total assets c. stockholders' claim on the firm - answer-c. stockholders' claim on the firm CI is all the income generated from: a. operating activities b. operating activities and net debt financing activities c. operating activities, net debt financing activities, and equity financing activities - answer-b. operating activities and net debt financing activities Which of the following is an inflow from shareholders? a. dividends b. share repurchase c. share issuance - answer-c. share issuance Unrecognized SBC expense is: a. an operating expense because it represents the cash paid to the SBC recipients in the period. b. an operating expense because it represents the shares issued to the SBC recipients in the period. c. an operating asset because SBC motivates employees and outside directors to work harder and smarter in the future. - answer-c. an operating asset because SBC motivates employees and outside directors to work harder and smarter in the future. SBC overhang is an operating liability because the firm will a. pay cash to employees and outside directors in the future at an amount which is the difference between the stock price at that time and a prespecified amount b. issue shares to employees and outside directors in the future at a price lower than the market price at that time - answer-b. issue shares to employees and outside directors in the future at a price lower than the market price at that time The fair value of SBC overhang increases by $100 unexpectedly, which results in an unexpected SBC: a. gain of $100 b. loss of $100 - answer-b. loss of $100 Intrinsic value of options exercised is a financial item because it represents a. a cash inflow from shareholders b. a non-cash inflow from shareholders c. a cash outflow to shareholders d. a non-cash outflow to shareholders - answer-b. a non-cash inflow from shareholders NOA(t) = ? NFL(t) = 3783 SE(t) = 2073 - answer-NOA(t) = 5856 OA are future benefits in activities involving a. debtholders and shareholders b. investees in the debt and equity markets c. customers and suppliers - answer-c. customers and suppliers OL are future sacrifices of benefits in activities involving a. debtholders and shareholders b. investees in the debt and equity markets c. customers and suppliers - answer-c. customers and suppliers Which of the following is like a mother hen? a. total assets b. operating assets c. net operating assets d. financial assets - answer-c. net operating assets FL are future sacrifices of benefits in a. operating activities b. debt financing activities c. financial investment activities d. equity financing activities - answer-b. debt financing activities FA are future benefits in a. operating activities b. debt financing activities c. financial investment activities d. equity financing activities - answer-c. financial investment activities The balance sheet is a. backward looking b. forward looking - answer-b. forward looking OI(t) = ? NFE(t) = 2014 CI(t) = -235 - answer-OI(t) = 1779 Revenue in 2020 is a. cash received from customers in 2020 b. the benefit earned from services performed for customers in 2020 - answer-b. the benefit earned from services performed for customers in 2020 Operating expenses in 2020 are a. cash spent in operations in 2020 b. costs incurred in generating the 2020 revenue - answer-b. costs incurred in generating the 2020 revenue OI is income generated from a. operating activities b. debt financing activities c. financial investment activities d. equity financing activities - answer-a. operating activities Interest expense in 2020 is a. interest payment in 2020 b. cost of using debt financing services in 2020 - answer-b. cost of using debt financing services in 2020 Interest income in 2020 is a. interest receipt in 2020 b. interest earned in 2020 from investments in debt securities - answer-b. interest earned in 2020 from investments in debt securities