Which accounting method is less likely to suffer from an inventory write-down?
An inventory write-down or an inventory impairment is defined as an accounting term that recognizes when your inventory’s market value falls below the book value, but it still considered sellable. Under an scenario of inventory increasing costs, which of the following inventory accounting methods is less likely to suffer an inventory write-down? a) FIFO. b)
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How are sources and uses of cash for mature and for new companies?
Evaluation of the cash flow statement should involve an overall assessment of the sources and uses of cash between the three main categories (operating, investing, and financing activities) as well as an assessment of the main drivers of cash flow within each category. Mark the correct sentence regarding where the major sources and uses of
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What are the main linkages between financial statements?
When financial analysts review the different financial statements reported by companies. It is crucial to understand how these financial statements are linked. Mark the correct sentence in relation to these linkages. a) The income statement, the cash flow statement, and the shareholder’s equity statement can be considered as “flow” statements, while the balance is considered
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How should we report intangible assets?
Intangible assets are those lacking physical form, such as patents and trademarks. Regarding the reporting of intangible assets in the balance sheet, we need to remember some relevant rules. Which of the following sentences is correct? a) Intangible assets must be reported as separated identifiable assets, and we can use either the cost model or
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What is the difference between the input method and the output method in revenue recognition?
When a firm sells products or services that will be delivered over a long period of time, (e.g., two years), and the firm knows the amount of money it will collect at the end of the transaction, the revenue can be recognized in each period according to two potential methods. Which of the following sentences
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What are the six main phases of a financial analysis, according to the CFA Institute?
Analysts work in a variety of positions within the investment management industry, and the CFA Institute establishes six phases in the process of financial analysis. Which one of these phases is responsible for creating adjusted financial statements, common-size statements, ratios and graphs? a) Collect input data. b) Process data. c) Analyze/interpret the processed data. https://vimeo.com/manage/videos/927186775
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