Question

-Financing activities is defined as:

	The principal revenue-generating activities of an organization and other activities that are not investing or financing; any cash flows from current assets and current liabilities
	Cash flows from the acquisition and disposal of long-term assets and other investments not included in cash equivalents
	Cash flows that result in changes in the size and composition of the contributed equity and borrowings of the entity (i.e. bonds, stock, cash dividends)
	All of the above.

-Income statement reflect the accounting results of a firm's activity over a period of time (typically a quarter or fiscal year) and include which of the following:

	Revenue (or sales)
	Gross profit
	Selling, General & Administrative expense (SG&A)
	All of the above

-Gross profit is the initial amount of profit generated after deducting:

	Raw materials and direct labor
	Raw materials and total labor
	Raw materials, direct labor and executive compensation
	Raw materials, indirect labor and executive compensation

-Which of the following is an important qualitative consideration when evaluating the earnings record of a company or business?

	Quantitative analysis alone is not sufficient.
	Nature of the business including factors that drive demand, competition, and input costs.
	Current year earnings should not be the primary basis for evaluation.
	All of the options provided.

Answer 1

1.

Correct option is > Cash flows that result in changes in the size and composition of the contributed equity and borrowings of the entity (i.e. bonds, stock, cash dividends)

Financing activities

2.

Correct option is > All of the above

Income statement generally reflects all of the following;

Revenues, profits, selling general and admin expenses

3.

Correct option is > Raw materials and direct labor

Gross profit is generally arrived after deducting raw material and direct labor.

4.

Correct option is > All of the options provided

Quantitative measures are not sufficient

Nature of the business including factors that drive demand, competition, and input costs should be studied well

basis of earning should be logical, it should not be always previous years base