Financial Statement Analysis

  1. “According to the company’s expense recognition note, we capitalize advertising and promotional costs.”
    True.
    False.

2.5 points

QUESTION 2

  1. “The company’s earned operating revenues for the most recent reporting period were $4,968,301,000”
    True.
    False.

2.5 points

QUESTION 3

  1. Which of the company’s expense accounts on the most recent income statement includes prepaid expenses?
    “Restructuing charges, net”
    Goodwill impairment charge
    Amortization of intangibles
    All of the above
    Unable to determine with information available.

2.5 points

QUESTION 4

  1. Which of the company’s balance sheet accounts represents future cash inflows from customers for revenue already earned?
    Accounts receivable
    Prepaid expenses and other curent assets
    Deferred revenue

2.5 points

QUESTION 5

  1. “The company’s most recent balance sheet states deferred revenue of $134,031,000. This deferred revenue amount is included in the revenue account on the company’s most recent income statement. “
    True.
    False.

2.5 points

QUESTION 6

  1. Which of the company’s balance sheet accounts represents future cash outflows for expenses already incurred?
    Accounts payable
    Accounts receivable
    Prepaid expenses and other current assets
    Deferred revenue

2.5 points

QUESTION 7

  1. Which of the company’s balance sheet accounts represents expenses that will appear on next year’s income statement?
    Accounts receivable
    Prepaid expenses and other curent assets
    Accounts payable

2.5 points

QUESTION 8

  1. Does the operating activities of the company’s most recent statement of cash flows include cash inflows from revenues that were accrued at the end of the most recent reporting period?
    Yes.
    No.

2.5 points

QUESTION 9

  1. The amount of cash that the company had collected from customers in advance of providing goods and services that will be earned revenue on next year’s income statement was:
    “$134,031,000”
    “$934,658,000”
    “$602,792,000”
    “$1,047,504,000”

2.5 points

QUESTION 10

  1. According to the company’s revenue recognition note, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed, and collectability of the related fee is reasonably assured.

    True

    False

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