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

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 on internal control

c.       Report on fairness of the financial statements

d.      All of these choices are correct.

2.      Typical items included in the MD&A would include all the following except

a.      Management’s analysis and explanations of any significant changes between the current and prior years financial statement

b.      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.

c.       Management’s assessment of the company’s liquidity and have availability of capital to the company.

d.      A worksheet.

3.      An extraordinary item is defined as an event or transactions that is

a.      Unusual in nature.

b.      Infrequent in occurrence

c.       Both unusual in nature and infrequent in occurrence

d.      None of these  choices are correct

4.      Generally accepted accounting principles require that unusual items

a.      Be reported within operating income on the income statement

b.      Be reported separately on the income statement

c.       Not ne reported on the income statement

d.      None of these choices are correct

5.      The analysis of increases and decreases in the amount and percentage of comparative financial statement items is called

a.      Horizontal analysis

b.      Vertical analysis

c.       Common-sized statements

d.      None of these choices are correct.

6.      The percentage analysis of the relationship of each component in a financial statement to a total or key figure within the statement is called.

a.      Horizontal analysis.

b.      Common-sized statements

c.       Vertical analysis

d.      None of these choices are correct

7.      In -----------------, all items are expressed as percentages, with no dollar amounts shown.

a.      Horizontal analysis

b.      Common-size statements

c.       Vertical analysis

d.      None of these choices are correct.