Soal Jawab Analisis Laporan Keuangan - Subramanyam

BAB 1 OVERVIEW OF FINANCIAL STATEMENT ANALYSIS Multiple Choice 1. Business analysis is applied in many forms and is an important part of the decision of down below, except…

a. Security analysis b. Investment advisors c. Politicians d. Investment bankers ANS: C

REF: Subramanyam Edisi 11 halaman 9

2. The most popular and widely used tools of financial analysis is … a. Ratio analysis b. Cash flow analysis c. Credit analysis d. Environmental analysis ANS: A


3. Estimating the intrinsic value of a company or its stock called as… a. Valuation b. Debt c. Allowance d. Credit ANS: A


4. a process of evaluating the extent to which a company’s accounting reflects economic reality. This is done by studying a company’s transactions and events, assessing the effects of its

accounting policies on financial statements, and adjusting the statements to both better reflect the underlying economics and make them more amenable to analysis called as… a. Accounting analysis

b. Cash flow analysis c. Credit analysis d. Environmental analysis ANS: A

5.


The evaluation of both a company’s business decisions and its success at establishing a competitive advantage. This includes assessing a company’s expected strategic responses to

its business environment and the impact of these responses on its future success and growth called as…

a. Strategy analysis b. Cash flow analysis c. Credit analysis d. Environmental analysis ANS: A


. True/False 1. The basis of valuation is present value theory. ANS: T


2. Analysis of financial statements can provide managers with clues to strategic changes in operating, investing, and financing activities. Managers also analyze the businesses and financial statements of competing companies to evaluate a competitor’s profitability and risk. ANS: T


3. The uncertainty in financial statement analysis due to accounting distortions. A major goal of accounting analysis is to evaluate and reduce accounting risk and to improve the economic content of financial statements, including their comparability called Accounting risk ANS: T


4. Cash flow analysis is primarily used as a tool to evaluate the sources and uses of funds. Cash flow analysis provides insights into how a company is obtaining its financing and deploying its resources. ANS: T


5. 95% of the 250 largest global companies produce corporate responsibility reports. ANS: T


Matching 1. The evaluation of both a company’s business decisions and its success at establishing a competitive advantage. … ANS: Strategy Analysis


2. The uncertainty in financial statement analysis due to accounting distortions. ANS: Accounting Risk


3. Estimating the intrinsic value of a company or its stock called as… Pilihan : Debt or Valuation ANS: Valuation


BAB 2 FINANCIAL REPORTING AND ANALYSIS Multiple Choice 1. Information intermediaries create value by processing and synthesizing raw and diverse information about a company and output it in a form useful for business decisions. They are viewed as performing one or more of at least four functions, except… a. Information gathering b. Information interpretation c. Perspective analysis d. Recommendation ANS: C


2. Financial statements are prepared periodically, typically each quarter. However, alternative information sources, including analysts’ reports, are released to the market whenever business events demand their revision. Limitations of financial statement information refers to… a. Timeliness b. Frequency c. Relevant d. Forward-looking ANS: A


3. The superiority of accruals in providing relevant information about a company’s financial performance and condition, and for predicting future cash flows, is explained as follows except…

a. Predicting future cash flows b. Financial performance c. Financial condition d. Evaluating manager performance ANS: D


4. Some reasons accounting income diffe rs from economic income, except… a. Alternative income concepts b. Transaction basis

c. Fair Value d. Conservatism ANS: C


5. Accounting income as consisting of three components, except…

a. Nonpermanent component b. Permanent component c. Transitory component d. Value irrelevant component ANS: A


True/False 1. Information in financial statements is judged relative to (1) the information needs of financial statement users and (2) alternative sources of information such as economic and industry data, analyst reports, and voluntary disclosures by managers. ANS: T


2. The magnitude of an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it possible that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement means materiality. ANS: T


3. At revenue recognition, revenues are realizable when the company receives an asset for products or services delivered (often receivables) that is convertible to cash and revenues are realized when cash is acquired for products or services delivered. ANS: F


4. It is impossible to consistently manage income upward in the long run and all income is manipulated. ANS: F


5. Under fair value model, asset and liability values are largely determined by a business entity’s

actual transactions in the past; the valuation need not reflect current economic circumstances. In contrast, under the historical cost accounting, asset or liability amounts are determined by the

most current value using market assumptions; the valuation need not be based on an actual transaction. ANS: F


Matching 1. For information to be reliable it must be verifiable, representationally faithful, and neutral. the information reflects reality means… ANS: Representational faithfulness


2. All product costs remain on the balance sheet as inventory until the products are sold, at which time they are transferred into the income statement as… ANS: Cost Of Goods Sold (COGS)


3. Financial statements are prepared as often as every quarter and are typically released from three to six weeks after the quarter-end. Pilihan : Timeliness or Frequency ANS: Timeliness


BAB 5 ANALYZING INVESTING ACTIVITIES: INTERCORPORATE INVESTMENTS Multiple Choice 1. Debt (or noninfluential equity) securities purchased with the intent of actively managing them and selling them for profit in the near future is... a. Available-for-Sale Securities b. Trading Securities c. Equity Securities d. Held-to-maturity securities ANS: B


2. Business combinations with sound economic motivations have a long history. Among the economic reasons for business combinations, except… a. acquiring valuable sources of materials, productive facilities, technology, marketing channels, or market share. b. securing financial resources or access to them. c. encouraging specialization d. acquiring tax advantages. ANS: C


3. SFAS 141 requires companies to identify and value specific categories of intangible assets. These include the following, except… a. Competition agreements. b. Trademarks and other marketing-related assets. c. Intangible assets relating to contractual relationships such as licensing, royalty, advertising, and management contracts, lease or franchise agreements, broadcast rights, employment contracts, and the like. d. Patents, computer software, databases, trade secrets or formulae, and other technology based intangible assets. ANS: A


4. There are a number of important points relating to equity method accounting, except…

a. Investment earnings (the proportionate share of the earnings of the investee company) should be distinguished from core operating earnings in the analysis of the earnings of the investor company unless the investment is deemed to be strategic in nature. b. Contrary to the reporting of available-for-sale and trading securities discussed earlier in this chapter, investments accounted for under the equity method are reported at adjusted cost, not at market value. c. An investor should continue equity method accounting when the investment is reduced to zero (such as due to investee losses) and should not provide for additional losses unless the investor has guaranteed the obligations of the investee or it otherwise committed to providing further financial support to the investee. d. The investment account is reported at an amount equal to the proportionate share of the stockholders’ equity of the investee company. ANS: C


5. Disregarding the parent’s potential tax liability from remittance of earnings by an affiliate, the dollar-for-dollar equivalence of earnings cannot be taken for granted. Reasons include, except… a. A regulatory authority can sometimes intervene in a subsidiary’s dividend policy. b. A subsidiary can operate in a country where restrictions exist on remittance of earnings or where the value of currency can deteriorate rapidly. Political risks can further inhibit access to earnings. c. Dividend restrictions in loan agreements can limit earnings accessibility. d. Presence of a stable or powerful mayority interest can reduce a parent’s discretion in setting dividend or other policies. ANS: D


True/False 1. Income statement for Available-for-Sale Securities, unrealized gains/losses not recognized in either net income or comprehensive income. ANS: F


2. The equity method requires investors initially to record investments at cost and later adjust the account for the investor’s proportionate share in both the investee’s income (or loss) because acquisition and decreases from any dividends received from the investee.

ANS: T


3. Consolidated financial statements report the results of operations and financial condition of a parent corporation and its subsidiaries in one set of statements. ANS: T


4. Only after the purchase price has been allocated to the fair market value of all tangible and identifiable intangible assets, less the market value of all liabilities assumed, can any of the purchase price be assigned to goodwill. ANS: T


5. Accounting definition of goodwill. Goodwill is the excess of cost over fair market value of net assets acquired in a purchase transaction. No attempt is made to explicitly identify components of this asset or the economic values assigned to them. ANS: T


Matching 1. An agreement between two or more parties to exchange future cash flows. It is common for hedging risks, especially interest rate and foreign currency risks. ANS: Swap contract


2. An agreement between two or more parties to purchase or sell a certain commodity or financial asset at a future date (called settlement date) and at a definite price. ANS: Futures contract


BAB 6 ANALYZING OPERATING ACTIVITIES Multiple Choice 1. An estimate of the stable average income that a business is expected to earn over its lifetime, given the current state is.. a. Permanent Income b. Permanent Component c. Transitory Component d. Core Income ANS: A


2. measure of company income as generated from operating activities is.. a. Non-operating Income b. Operating Income c. Net Income d. Alternative Income ANS: B


3. Earnings management with special charges except.. a. Special charges often garner less investor attention under an assumption they are nonrecurring and do not persist. b. Managers motivated to re-classify operating charges as special one-time charges c. when analyst ignore such re-classified charges it leads to low operating expense estimates and overestimates of company value. d. none of the above ANS: D

REF: Subramanyam edisi 11 halaman 374

4. what is definition of “Out-of-the-Money”..

a. When Stock price is higher than exercise price b. Equal to stock price on grant date c. When stock price is less than exercise price d. The price a holder has the right to purchase shares at

ANS: C


5. What is definition of “In-the-Money”..

a. When Stock price is higher than exercise price b. Equal to stock price on grant date c. When stock price is less than exercise price d. The price a holder has the right to purchase shares at ANS: A


True/False 1. ESOs in-the-money are dilutive securities and affect diluted EPS. ANS: T


2. ESOs out-of-the-money are antidilutive securuties and do not affect diluted EPS. ANS: T


3. Interest rate is determined by interest rate, principal, and time. ANS: F


4. Interest Expense is determined by risk characteristics of borrower ANS: F

REF: Subramanayam edisi 11 halaman 389

5. Exercise price often set equal to stock price on grant date. ANS: T


Matching 1. Cost usually related to major changes in company business. ANS: Restructuring Charges


2. When asset fair value is below carrying (book) value. ANS: Asset Impairment


3. transactions and events that are unusual or infrequent. ANS: Special Items


4. involves change in estimate underlying accounting. ANS: Accounting Estimate Change


5. a change is accounted for in current and future periods ANS: Prospective Application


Soal Jawab Analisis Laporan Keuangan - Subramanyam

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