1. In addition to the financial statements and the accompanying notes, corporate annual reports normally include which of the following? a. Management discussion and analysis b. Report
In addition to the financial statements and the accompanying notes, corporate annual reports normally include which of the following?
Management discussion and analysis
Report on internal control
Report on fairness of the financial statements
All of these choices are correct.
Typical items included in the MD&A would include all the following except
Management’s analysis and explanations of any significant changes between the current and prior years financial statement
Important accounting principles or policies that could affect interpretation of the financial statements, including the effect of changes in accounting principles or the adoption of new accounting principles.
Management’s assessment of the company’s liquidity and have availability of capital to the company.
A worksheet.
An extraordinary item is defined as an event or transactions that is
Unusual in nature.
Infrequent in occurrence
Both unusual in nature and infrequent in occurrence
None of these choices are correct
Generally accepted accounting principles require that unusual items
Be reported within operating income on the income statement
Be reported separately on the income statement
Not ne reported on the income statement
None of these choices are correct
The analysis of increases and decreases in the amount and percentage of comparative financial statement items is called
Horizontal analysis
Vertical analysis
Common-sized statements
None of these choices are correct.
The percentage analysis of the relationship of each component in a financial statement to a total or key figure within the statement is called.
Horizontal analysis.
Common-sized statements
Vertical analysis
None of these choices are correct
In -----------------, all items are expressed as percentages, with no dollar amounts shown.
Horizontal analysis
Common-size statements
Vertical analysis
None of these choices are correct.