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33
Analyze the following:
I – 75% test should applied based on all external revenue of all reportable segments only.
II – Failure to record depreciation at year-end results in understated income.
III – If income from continuing operations is less than zero, potentially dilutive securities are antidilutive.
Given these, we can conclude that:
Group of answer choices
Only statement III is false.
Only statements I and II are false.
Only statements II and III are false.
Only statements I and III are true.
Step by step
Solved in 3 steps
- 21. Which of the following statements is most accurate? If the covariance of returns between two assets is 0.0023, then: A. the assets' risk is near zero. B. the asset returns are unrelated. abia C. the asset returns have a positive relationship.Which of the following statements is false? (You may select more than one answer.)a. The total-cost and incremental-cost approaches to net present value analysis canoccasionally lead to conflicting results.b. The cost of capital is a screening mechanism for net present value analysis.c. The present value of a dollar increases as the time of receipt extends further intothe future.d. The higher the cost of capital, the lower the present value of a dollar received inthe future.1. Which of the following are potential explanations that have been proposed for the January Effect? Select all that apply. A. Tax loss selling B. IRS wash sale rule C. Psychological drivers, completely unrelated to the market D. Window dressing 2. If a certain asset commands a liquidity premium, what does this imply? A. It has a higher expected return than less liquid similar assets B. It is more sensitive to liquidity shocks than similar assets C. It is more difficult to trade than similar assets D. It has a higher price than less liquid similar assets ' dont copy other's answer, Select all that apply
- Question 3 The following is an extract from Isaac LLP's assurance report on a profit forecast: 'Based on our examination of the profit forecast and the underlying the assumptions, nothing has come to our attention which causes us to believe that these assumptions do not provide a reasonable basis for the forecast." Which ONE of the following best describes the type of assurance provided by this statement? A Negative assurance expressed positively B Limited level of assurance expressed negatively C High level of assurance expressed negatively D Positive assurance expressed negativelyWhich of the following statements is not correct? Group of answer choices A)Purchasing fixed assets using cash decreases the current ratio. B)Accruing a commission expense will affect the net profit margin ratio. C)Increasing the financial leverage ratio guarantees the net profit margin ratio will increase. D)Purchasing treasury stock results in a decrease in the current ratio. E)All of the above are correctAll of the following statements about an efficient market are correct EXCEPT: a. All financial transactions have an NPV of equal to zero b. A skilled individual may have sustainable above market returns c. The investor is compensated properly for risk borne d. The investor does not receive abnormal returns consistently
- Which of the following is NOT an acceptable basis on which to measure an expense? A cash outflow. O A pro rata measure. O An estimation. O All of these options are acceptable. O An invoice price. Which of the following is a likely explanation as to why preparers would choose to deliberately understate the reported profit of a listed entity? O To reduce investors' expectations of future earnings. O To decrease the entity's weighted average cost of capital. To reduce the entity's tax liability. O To satisfy the qualitative characteristic of faithful representation. O All of these are likely explanations why preparers would deliberately understate the reported profit.Question 2 - Biases Part A. Fisher and Statman (2002) find that investors believe that their own portfolios will outperform the market portfolio. The evidence is consistent with which of the following biases? a) representativenessb) conservatismc) memory biasd) overconfidence Part B. The post-earnings drift reflects which of the following biases? a) overconfidence b) memory bias c) representativeness d) conservatismPart C. Investors' expectation about the future performance of stock market tends to rise or fall with its recent performance. Their expectation has which of the following biases? a) conservatism b) representativeness c) memory bias d) overconfidenceSubject 3 A. Proponents of the use of Fair Value Accounting (FVA) argue that the use of fairvalue reflects current market conditions. On the contrary, opponents of the FVAargue that under specific circumstances, such as a financial crisis, mark-to-marketaccounting may lead to considerable volatility in the financial statements andespecially the Income Statement (Laux and Leuz, 2009). Critically discuss themerits and flaws of FVA in relation to cost accounting. Recommended Reference Laux, C., & Leuz, C. (2009). The crisis of fair-value accounting: Making sense ofthe recent debate. Accounting, organizations and society, 34(6-7), 826-834.
- Read the following statements w.r.t. investment appraisal techniques and identify the most appropriate option (i) The rate of return method does not take care of timings of returns. (ii) Simple Payback method does not consider time value of money. Select one: a. Both statements are correct O b. First statement alone is correct c. Second statement alone is correct d. Both statements are wrongStatement 1: Fundamental analysis believe that the historical performance of the stocks and markets areindications of future performanceStatement 2: Fundamental analysis works best in determining market sentiment and factor in the creation ofinvestment or trading decisionsStatement 3: Fundamental analysis will succeed if the analyst finds overlooked data in identifying undervaluedsecuritiesStatement 4: Fundamental analysis works best if all investors are logical and could separate emotions frominvestment decision.Statement 5: Fundamental analysis use charts and patterns that can suggest future activity and to measure asecurity’s intrinsic value.a. Only statements 1 and 3 are correct b. Only statements 2 and 4 are correct c. Only statements 1 and 2 are correct d. Only statements 3 and 4 are correctTB MC Qu. 10-139 (Static) Why doesn't stockholders' equity equal the... Why doesn't stockholders' equity equal the market value of equity? Multiple Choice Stockholders' equity usually does equal the market value of equity. It's due to incorrect entries prepared by accountants. Investors tend to incorrectly price the market value of equity. It's related to the use of historical cost to report many long-term assets and the expensing of value-generating costs such as research and development and advertising.
