Question

Question 1 Under the Securities Exchange Act of 1934, U.S. public companies are required to file...

Question 1

Under the Securities Exchange Act of 1934, U.S. public companies are required to file with the SEC a number of very informative reports, including:

A-

10-Q

B-

10-K

C-

Both options provided.

D-

Neither options provided.

Question 2

Balance sheet represents the financial position of a firm at one point in time, normally the end of a company's fiscal quarter or fiscal year. Which equation describes financial position:

A-

Equity – Liabilities = Assets

B-

Assets = Liabilities + Equity

C-

Equity = Current Assets + Current Liabilities

D-

Assets = Current Assets + Current Liabilities

Question 3

Current assets includes everything except:

A-

Cash

B-

Accounts receivable

C-

Inventory

D-

Goodwill

Question 4

Which of the following is not true about accounts receivable?

A-

Represents the amount of credit extended to customers.

B-

Accounts receivable as a percentage of sales will vary by industry.

C-

Accounts receivable is nearly the same as cash because it eventually converts to money.

D-

All of the above.

Homework Answers

Answer #1

Question 1

U.S Stock exchange requires filing quarterly returns as well as annual returns. Both 10Q and 10K are filed by companies.

Correct option is option-c

Question 2

Financial position is Assets = Equity plus liabilities

Means every asset the firm has is either financed by equity contribution or from the amount borrowed.

Option -B is correct

Question 3

Current assets includes cash, inventory, accounts receivable (those which are expected to be realised with in the next accounting cycle that is with in 12 months) but not goodwill which is a non-current asset.

Option -D is correct

Question 4

All the options given are correct

Option - D is correct

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