Professional Documents
Culture Documents
PERTANYAAN BAB 1 - 6
Kelompok 7
S1 AKUNTANSI TRANSFER
2017
TRUE/FALSE
CH. 1
1. Business analysis is the evaluation of a companys prospects and risks for the purpose of
making business decisions.
ANS: T REF: Subramanyam, Ed. 11, hal. 4
2. Intrinsic value is the value of a company (or its stock) determined through fundamental
analysis without reference to its market value (or stock price).
4. Valuation refers to the process of converting forecasts of future payoffs into an estimate
of company value.
CH. 2
7. Reliability is the capacity of information to affect a decision and is the first of two
primary qualities of accounting information.
9. Cash accounting aims to inform users about the consequences of business activities for
a companys future cash flows as soon as possible with a reasonable level of certainty.
10. Many types of cash flows do not affect company valuefor example, cash collected
from customers on account.
CH. 3
11. Effective interest rate is the rate that the market assigns to the bond at the time of its
issuance.
12. Information regarding anticipated future maturities of the debt, details of contractual
provisions such as collateral and covenants, unused balances in lines of credit, and any
other pertinent information relating to a companys debt include of details regarding
companies long-term (and short-term) debt in notes to the financial statements.
13. Fair values diverge from amortized cost because they reflect past interest rates, unlike
amortized cost, which reflects interest rates at the time of issue.
14. For companies that report both capital and operating leases, we can estimate the implicit
interest rate on the capital leases and assume operating leases have a similar interest
rate.
16. Commitments are potential claims against a companys resources due to past
performance under contract.
CH. 4
1. The excess of current assets over current liabilities is called operating cycle.
2. Accounts receivable refer to amounts due to the company that arise from sales of products
and services.
3. Prepaid expenses are advance payments for services or goods not yet received.
4. Costs cannot be in two places at the same time; either they remain on the balance sheet (as
a future expense) or are recognized currently in the income statement and reduce
profitability to match against sales revenue.
5. In periods of rising prices, FIFO produces lower gross profits than LIFO because higher
cost inventories are matched against sales revenues at current market prices.
MULTIPLE CHOICE
CH. 1
1. Individuals who apply active investment strategies primarily use these analysis, except....
a. Technical analysis
b. Fundamental analysis
c. Combination between technical and fundamental
d. Deep analysis
4. The equity investors share of company earnings in the form of either earnings
distribution or earnings reinvestment, can be known as ......
a. Earnings distribution
b. Dividend payout
c. Earnings investment
d. Return
CH. 2
6. Annual and quarterly financial statements are made available to the public only after
the financial statements are prepared and audited. This time lag usually spans one to six
weeks. Yet companies almost always release key summary information to the public
earlier through an .........
a. earnings announcement
b. pro forma earnings
c. return investment
d. pro forma income
7. Information intermediaries are not directly involved in making investment and credit
decisions. They are viewed as performing one or more of at least these functions,
except.......
a. Information interpretation
b. Prospective analysis
c. Recommendation
d. Conclusion
9. There are several myths and misconceptions about accrual accounting, income, and
cash flow, except.....
a. Many types of cash flows do not affect company valuefor example, cash collected
from customers on account.
b. Because company value depends on future cash flows, only current cash flows are
relevant for valuation.
c. Cash flows cannot be manipulated.
d. It is impossible to consistently manage income upward in the long run.
10. ..........is typically determined as cash flow during the period plus the change in the
present value of expected future cash flows, typically represented by the change
in the market value of the businesss net assets.
a. Economic value
b. Economic income
c. Return on equity
d. Realized income
CH. 3
11. There are three ways in which lenders protect themselves, except ..
a. Seniority
b. Collateral
c. Coventional
d. Covenants
ANS : C REF: Subramanyam, Ed. 11, hal 142
12. A lessee (the party leasing the asset) classifies and accounts for a lease as a capital lease
if, at its inception, the lease meets any of criteria in bellow, except ..
a. the lease transfers ownership of the property to the lessee by the end of the lease term.
b. the lease contains an option to purchase the property at a bargain price
c. the lease term is 75% or more of the estimated economic life of the property
d. the present value of the minimum lease payments (MLPs) at the beginning of the lease
term is 75% or more of the fair value of the leased property.
ANS : D REF: Subramanyam, Ed. 11, hal 142
13. Lessees incentives to structure leases as operating leases relate to the impacts of
operating leases versus capital leases on both the balance sheet and the income
statement. These impacts on financial statements are summarized as follows, except .
a. Operating leases overstate liabilities by keeping lease financing off the balance sheet.
b. Operating leases understate assets.
c. Operating leases delay recognition of expenses in comparison to capital leases.
d. Operating leases understate current liabilities by keeping the current portion of the
principal payment off the balance sheet.
CH. 4
1. Bellow included periodic depreciation expense depends on the allocation method, except
.
a. Straight-line
b. Number-line
c. Accelerated
d. Activity methods
ANS : B REF: Subramanyam, Ed. 11, hal 247
2. Another challenge for our analysis arises from differences in allocation methods used for
financial reporting and for tax purposes. Three common possibilities are, except .
a. Income numbers are adversely affected by the large transitory amounts that are
introduced through asset revaluations, both upward and downward.
b. Combination across time can be affected by asset depreciation.
c. Revaluations are often made at the discretion of management.
d. Comparisons across time can be affected by asset revaluations.
MATCHING
CH. 1
a. Earnings reinvestment
b. Risk analysis
d. Profitability analysis
e. Earnings distribution
f. Business plan
A companys goals and objectives are captured in a (3) ......... that describes the companys
purpose, strategy, and tactics for its activities. Two important sources of information on a
companys business plan are the Letter to Shareholders and (4) .............
Return is the equity investors share of company earnings in the form of either earnings
distribution or earnings reinvestment. (5) ................ is the payment of dividends to
shareholders. Dividends can be paid directly in the form of cash or stock dividend, or indirectly
through stock repurchase. (6) ................. refers to retaining earnings within the company for
use in its business; this is also called internal financing. (7) ..............., reflecting the proportion
of earnings retained, is defined as one less the dividend payout ratio.
CH. 2
a. Realized or Realizable
b. Permanent income
c. Earned
d. The permanent component
e. Economic income
f. Accounting income
(8) ............. is the stable average income that a business is expected to earn over its life, given
the current state of its business conditions. Unlike (9) .............., which measures change in
company value, permanent income is directly proportional to company value.
(10) ............. is based on the concept of accrual accounting. While this income does reflect
aspects of both economic income and permanent income, it does not purport to measure either
income concept.
The two necessary conditions for recognition are that revenues must be (11) ............. for
revenue to be recognized, and (12) ..............., the company must have completed all of its
obligations to the buyer; that is, the earning process must be complete.
CH. 3
a. common stock
b. split-off
c. residual interests
d. spin-off
e. other postretirement employee benefits (OPEB)
f. employer contributions
g. pension benefits
h. benefit payments
16. is a class of stock representing ownership interest and bearing ultimate risks and
rewards of company performance.
17. Common stock represents having no preference, but reaping residual net income and
absorbing net losses.
18. ., the distribution of subsidiary stock to shareholders as a dividend; assets (investment
in subsidiary) are reduced, as are retained earnings.
19. , the exchange of subsidiary stock owned by the company for shares in the company
owned by the shareholders; assets (investment in subsidiary) are reduced and the stock
received from the shareholders is treated as treasury stock.
20. , where the employer promises monetary benefits to the employee after retirement,
21. , where the employer provides other (usually nonmonetary) benefits after
retirementprimarily health care and life insurance.
22. The major cash inflow into the plan comes through , which understandably increase
plan asset values.
23. The major cash outflows from the plan are to retired employees.
CH. 4
a. capitalization
b. allocation
c. impairment
d. historical cost
e. fair values
f. revaluation surplus
24. is the process of deferring a cost that is incurred in the current period, but whose
benefits are expected to extend to one or more future periods.
25. is the process of periodically expensing a deferred cost (asset) to one or more future
expected benefit periods.
26. is the process of writing down the book value of the asset when its expected cash
flows are no longer sufficient to recover the remaining cost reported on the balance sheet.
27. The revaluation model implies that assets will always be reported at their .. on the
balance sheet.
28. Periodic revaluations will occur through the creation of a.
29. The revaluation surplus is the amount by which an assets carrying value on the balance
sheet exceeds its...