Questions from Financial Reporting


Q: Indicate a practical problem with computing a Z score for a closely

Indicate a practical problem with computing a Z score for a closely held firm.

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Q: No conclusive model has been developed to forecast financial failure. This

No conclusive model has been developed to forecast financial failure. This indicates that financial ratios are not helpful in forecasting financial failure. Comment.

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Q: You are the auditor of Pied more Corporation. You determine that

You are the auditor of Pied more Corporation. You determine that the accounts receivable turnover has been much slower this period than in prior periods and that it is also materially lower than the i...

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Q: List four popular forms of graphs used by accountants.

List four popular forms of graphs used by accountants.

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Q: List two things that can make a line graph misleading.

List two things that can make a line graph misleading.

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Q: Indicate two possible problems with a pie graph for accounting data.

Indicate two possible problems with a pie graph for accounting data.

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Q: The surveyed CFAs gave the highest significance rating to which type of

The surveyed CFAs gave the highest significance rating to which type of financial ratio?

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Q: CFAs gave liquidity ratios a high significance rating. Comment.

CFAs gave liquidity ratios a high significance rating. Comment.

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Q: Describe a proper management of earnings. Describe an improper management of

Describe a proper management of earnings. Describe an improper management of earnings.

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Q: In some countries where inflation has been material, an effort has

In some countries where inflation has been material, an effort has been made to retain the significance of money as a measuring unit by adjusting the financial statements by an inflation factor. Can a...

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