Following IFRS, which statement is false? Group of answer choices If the revaluation initially decreases the long-term operating asset's carrying value, the firm reports the difference between the carrying value and fair value as an unrealized loss on the income statement. If the long-term operating asset's fair value increases in subsequent accounting periods, after an initial write-down, the firm reports the unrealized gain in the revaluation surplus account. The revaluation surplus account is reported as other comprehensive income on the statement of comprehensive income. If the long-term operating asset's fair value increases in subsequent accounting periods, after an initial write-down, the firm reports the unrealized gain on the income statement, but only to the extent of previously recognized losses.

When estimating a relative valuation for a firm or project with zero or negative earnings, where EBITDA or P/E multiples are not useful, an alternative valuation ratio could include a. market to book value of equity.b. enterprise value to sales.c. price per square foot.d. all of the above. e. none of the above.

If the firms earns rate of return on its investments equal to the required rate of return it is called   O a. Normal firm   O b. Growth firm   O c. Decline firm   Od. Slow firm

When measuring the investment of the firm, assets are often used. Select all that are issues with this measurement: Question 2 options:             a) The book value of assets declines with use for sales (matching), which makes it appear that the same sales can be made with a smaller investment in assets in the future     b) The firm has paid for these assets already (cash flow in the past)     c) The market value of assets can vary     d) Assets do not represent everything that is needed to make sales

Intermediaries can reduce positive income (maturity) gaps by interest sensitive and by _the proportions of their liabilities that are the proportion of their assets that are interest sensitive. Select one: O a increasing; decreasing O b. decreasing: increasing O c. decreasing decreasing O d. increasing; increasing

Which one of the following is violated when a firm has a policy of accelerating the recognition of depreciation expense during good years and decreasing depreciation expense during lean years?     Relevance     Matching     Consistency     Conservatism

True or false?

A firm’s weighted average cost of capital should not do which one of the following? Group of answer choices   measure the cost of short-term sources of funds measure cost on a marginal basis measure the cost of long-term sources of funds measure cost on an after-tax basis

The investment income generated between the time premiums are received and the time claims are paid may result in underwriting risk due to? a. Unexpected decreases in investment yields or returns. b. Unexpected increases in investment yields or returns. c. Unexpected increases in expenses. d. Unexpected decreases in expenses.

LBO Valuation - Normalizing EBITDA The ultimate valuation of a prospective LBO is usually based on normalized EBITDA so it's important to understand potential adjustments to derive normalized EBITDA. Which of the following is not typically considered an adjustment when normalizing EBITDA? Gains/losses on sale of assets A O Personal expenses being expensed to the company Reducing cost of goods sold as the private equity firm will drive costs lower Transaction or professional fees Scroll down for more Next