5.13: Multiple Choice
- Page ID
- 94606
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1.
Which of the following is a measure of the performance of a firm’s daily operations?
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gross profit
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cost of goods sold
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operating income
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net income
2.
In which section of the classified balance sheet would you find a note payable due in six months?
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current assets
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current liabilities
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noncurrent liabilities
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common stock
3.
Which financial statement must be prepared first?
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statement of retained earnings
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balance sheet
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statement of cash flows
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income statement
4.
Which of the following represents earned capital on the statement of owner’s equity?
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retained earnings
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common stock
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preferred stock
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additional paid-in capital
5.
Which section of the statement of cash flows reflects the cash generated from or used by a company’s day-to-day operations?
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investing activities
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financing activities
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operating activities
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noncash activities
6.
How do you calculate free cash flow (FCF)?
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net income less dividends
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operating income less capital expenditures
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gross profit less depreciation
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net income plus interest
7.
How do you calculate common-size analysis on the income statement?
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income statement line item/gross profit
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income statement line item/net income
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net sales/income statement line item
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income statement line item/net sales
8.
Which of the following does not represent a filing commonly required by the SEC?
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annual report, 10-K
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quarterly report, 10-Q
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Form 8-K
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1040