ACC/573 ACC573 ACC 573 WEEK 11 FINAL EXAM

A minimum liability for pension expense is reported when

The major difference between accounting for pensions and the accounting for other postretirement benefits is that firms

Which of the following statements best describes the difference between U.S. GAAP and IFRS with respect to revenue recognition?

Which of the following is not part of the balance sheet approach when computing income tax expense?

As transitory components become a more important part of a firm's reported earnings, the reported earnings 

On the income statement, income from discontinued operations is shown

The assessment of earnings quality is best accomplished through the use of which one of the following? 

If a company has very low operating leverage (i.e. a low proportion of fixed costs in the cost structure) and no changes are expected in operations

When projecting operating expenses it is important to determine the mix of fixed and variable costs, one clue suggesting the presence of fixed costs is

All of the following are the fundamental bases for future payoffs to equity shareholders and share value except:

Financial ratio, percentage, and trend comparisons can be distorted by all of the following except: 

Equity-based valuation models are based on all metrics except

The historical discount rate of the firm may be a good indicator of the appropriate discount
rate to apply to the firm in the future, when all of the following conditions hold true except:

Equity valuation models based on dividends, cash flows, and earnings have been the topic of many theoretical and empirical research studies in recent years. All of the following are true regarding these studies except:

When calculating free cash flows to common equity shareholders, financing activities do not include:

The conceptual framework for free cash flows separates all assets and liabilities into the following categories:

Which of the following is not a problem with using a dividend-based valuation formula

All of the following are logical steps that enable the analyst to determine reliable estimates of value except:

Residual income is the

Residual income valuation focuses on

Residual income in a long-run steady-state growth period is referred to as:

The market price of a share of common equity reflects

Which of the following ratios usually reflects investor’s opinions of the future prospects for the firm?

Strictly speaking, the price-earnings ratio assumes that firm value is the

A company with a PEG ratio of greater than one would be interpreted as having a stock price