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LOS d: Discuss the importance of the interpretation of footnotes to accounting statements and other disclosures.
Q1. Notes to financial statements contain:
A) little useful information for the analyst relative to the actual financial statements.
B) important information about the firm's accounting practices and basis of presentation.
C) statements by auditors.
Q2. Disclosures of accounting practices and basis are often made in what part of a firm’s financial reports?
A) Cash flow statement.
B) Income statement.
C) Footnotes to the financial statements.
Q3. What are three factors that would make a firm's accounting earnings less of a gauge of future economic performance? Late filings, unusually:
A) low amounts of loans to company insiders, and short tenure of senior management.
B) high amounts of loans to company insiders, and long tenure of senior management.
C) high amounts of loans to company insiders, and short tenure of senior management.
Q4. An analyst should carefully review the footnotes to a firm’s financial statements to determine the:
A) future growth rate of the firm.
B) accounting practices and basis utilized by the firm.
C) salaries of top executives. | 
发表于 2009-3-5 09:27
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