5 multiple choice questions financial statement development and analysis. I have 5 mulitple choice questions that I need to have complete and returned to me by 1:00 pm CST on 5/28/17. ÿMust have accounting or finance background to answer.1. ÿ Short-term liquidity results that would cause an analyst the most concern are:A.ÿÿÿÿÿÿÿ an increase in the inventory conversion cycle and a decrease in the net cash conversionÿÿÿÿÿÿÿÿÿÿÿ cycle.B.ÿÿÿÿÿÿÿ a decrease in the inventory conversion cycle and an increase in the net cash conversionÿÿÿÿÿÿÿÿÿÿÿ cycle.C.ÿÿÿÿÿÿÿ a decrease in the inventory conversion and net cash conversion cycles.D.ÿÿÿÿÿÿÿ an increase in the inventory conversion and net cash conversion cycles.Answer:ÿ __________2. Domestic Co. establishes Foreign Subsidiary Co. at the beginning of the current reporting year. The primary analytical consideration resulting from this business decision is the:A.ÿÿÿÿÿÿÿ establishment of a separate legal entity.B.ÿÿÿÿÿÿÿ additional financial statements produced by the newly created entity.C.ÿÿÿÿÿÿÿ creation of more detailed segment disclosures.D.ÿÿÿÿÿÿÿ reporting of Domestic Co.?s financial statements on a consolidated basis.Answer:ÿ __________3. ÿAn analyst would be most concerned with a business that pays dividends if it is in its:A.ÿÿÿÿÿÿÿ emerging stage with little earnings history.B.ÿÿÿÿÿÿÿ mature stage with earnings equal to the industry?s average.C.ÿÿÿÿÿÿÿ final period of decline.D.ÿÿÿÿÿÿÿ growth stage with substantial cash on hand and retained earnings.Answer:ÿ __________4. ÿAssume that an entity depreciates equipment purchased this year on a straight-line basis for financial reporting purposes and uses an accelerated method for tax purposes. If the company acquires more expensive equipment in the next reporting year, the company?s next balance sheet would report a ____________ than the current balance sheet.A.ÿÿÿÿÿÿÿ larger deferred tax liabilityB.ÿÿÿÿÿÿÿ smaller deferred tax liabilityC.ÿÿÿÿÿÿÿ larger deferred tax assetD.ÿÿÿÿÿÿÿ smaller deferred tax assetAnswer:ÿ __________5. ÿAn analyst would be most concerned about earnings sustainability when encountering:A.ÿÿÿÿÿÿÿ operating expense categories, such as cost of goods sold.B.ÿÿÿÿÿÿÿ recurring losses and gains attributable to multiple corporate restructurings.C.ÿÿÿÿÿÿÿ a decline in salaries expense.D.ÿÿÿÿÿÿÿ an increase in research and development costs.Answer:ÿ __________
5 multiple choice questions financial statement development and analysis
