F030 Lesson 1 Exam SCORE 100 PERCENT.......finance

Lesson 1 Exam
Question 1        5 / 5 points
Which financial statement presents the results of operations?
Question options:

Balance sheet

Statement of financial position

Income statement

Statement of cash flows
Question 2        5 / 5 points
Which report is NOT required to be filed by public companies to the SEC?
Question options:

Annual reports (Form 10-K)

Financial Reporting Rulings

A prospectus for any new security offering

Quarterly reports (From 10-Q)
Question 3        5 / 5 points
Why does the management discussion and analysis help the analyst?
Question options:

It contains information that cannot be found in the financial data.

It provides predictions of all future financial statement numbers.

It outlines the accounting choices made by the firm.

It explains the market valuation of the firm's stock.
Question 4        5 / 5 points
What information can be found on a balance sheet?
Question options:

Information to support that assets equal liabilities

The profit or loss for the accounting period

The reasons for changes in the cash account

The financial position on a particular date; i.e. assets, liabilities and shareholders' equity
Question 5        5 / 5 points
How are revenues and expenses recognized under the accrual basis of accounting?
Question options:

Revenues are recognized when cash is received and expenses are recognized when cash is paid.

Revenues and expenses are recognized equally over a twelve month period.

Revenues and expenses are recognized based on the choices of management.

Revenues are recognized in the accounting period when the sale is made and expenses are recognized in the period in which they relate to the sale of the product.
Question 6        5 / 5 points
Which of the following is an external source of liquidity?
Question options:

Sales of services

Repurchase of stock

Borrowing

Sales of products
Question 7        5 / 5 points
Which financial statement provides information about operating, financing and investing activities?
Question options:

Statement of financial position

Statement of cash flows

Statement of stockholders' equity

Income statement
Question 8        5 / 5 points
Which financial statement shows the assets, liabilities and stockholders' equity of the firm on a particular date?
Question options:

Statement of stockholders' equity

Statement of cash flows

Earnings statement

Balance sheet
Question 9        5 / 5 points
What does Section 404 of the Sarbanes-Oxley Act of 2002 require?
Question options:

The external auditors must create an adequate internal control structure for the firm being audited.

The external auditors must approve of all internal auditors hired by a firm.

The inclusion of an internal control report in the annual report.

The external auditors need to perform internal audit services.
Question 10        5 / 5 points
What type of audit report indicates that the financial statements have NOT been presented fairly?
Question options:

A disclaimer of opinion

An unqualified report

A qualified report

An adverse opinion
Question 11        5 / 5 points
What organization has the authority to register, inspect, and discipline auditors of all publicly owned companies?
Question options:

Public Company Accounting Oversight Board

SOX

Congress

FASB
Question 12        5 / 5 points
Which of the following is an internal source of liquidity?
Question options:

Borrowing

Sales of stock

Gifts and donations

Sales of products or services
Question 13        5 / 5 points
What type of audit report indicates that the financial statements have been presented fairly?
Question options:

An unqualified report

A disclaimer of opinion

A qualified report

An adverse opinion
Question 14        5 / 5 points
Which agency requires the filing of Form 10-Ks, Form 10-Qs and Form 8-Ks?
Question options:

FASB

IASB

SEC

GAAP
Question 15        5 / 5 points
According to Section 302 of the Sarbanes-Oxley Act, who must certify the accuracy of the financial statements of a public company?
Question options:

Public Company Accounting Oversight Board

SEC

External auditor

CEO and CFO
Question 16        5 / 5 points
The globalization of business activity has resulted in which of the following?
Question options:

Increased corruption and unethical behavior

A uniform set of accounting rules in all countries

The FASB and IASB working jointly on a project to converge accounting standards

The requirement that U.S. firms use international accounting rules as of 2006
Question 17        5 / 5 points
In what industry would it be expected that companies would spend a significant amount on research and development activities?
Question options:

Pharmaceutical

Clothes retailer

Groceries

Wholesale distributor of computer parts
Question 18        5 / 5 points
Which of the following statements is true?
Question options:

Foreign firms registered with the SEC may file reports based on IFRS.

U.S. firms registered with the SEC may file reports based on IFRS.

The European Union requires firms to report based on GAAP.

Foreign firms registered with the SEC may file reports based on IFRS only if they reconcile all amounts to GAAP.
Question 19        5 / 5 points
Which of the following items is a discretionary expenditure?
Question options:

Union wages

Factory building to produce inventory

Advertising

Taxes
Question 20        5 / 5 points
What basic financial statements can be found in a corporate annual report?
Question options:

Balance sheet, income statement, statement of shareholders' equity, and statement of cash flows

Balance sheet, auditor's report and income statement

Earnings statement and statement of retained earnings

Statement of cash flows and five-year summary of key financial data

F03K Assignment 04.....finance

Assignment 04

F03 Financial Statement Analysis

Directions:  Be sure to make an electronic copy of your answer before submitting it to Ashworth College for grading.  Unless otherwise stated, answer in complete sentences, and be sure to use correct English spelling and grammar.  Sources must be cited in APA format.  Your response should be four (4) pages in length; refer to the "Assignment Format" page for specific format requirements.

 

1.      Discuss the importance of the statement of cash flows as an analytical tool for users of financial statements.

 

2.      Explain the meaning of the three categories of a statement of cash flows:  operating, investing and financing activities. Give an example of an inflow and an outflow for each category.

 

3.      Identify the following items as operating (O), investing (I), or financing (F) activities.

a.       Property, plant and equipment

b.      Current maturities of long-term debt

c.       Inventories

d.      Accounts receivable

e.       Common stock

f.       Short-term debt

g.      Accounts payable

h.      Net income

i.        Accumulated depreciation

j.        Dividends

 

4.      Explain how it is possible for a firm with a positive net profit to generate negative cash flow from operating activities.

 

LAW531 Week 5 Report discussing legal concepts from Brief

Using the same case your team briefed this week, discuss how the legal concepts in the selected case can be applied within a business managerial setting. Give an example from real life experiences or current events. Explain how the rule discussed in the case have impacted the industry in past and what you see for the future. Discuss the positive and negative effect the case law has made on the industry.

"Waldo's working environment at Consumers was filled with discriminatory intimidation, ridicule, and insult that was sufficient to create a hostile work environment."

—Moore, Circuit Judge

Facts

Theresa Waldo was employed by Consumers Energy Company of Michigan as an electrical line worker, a position that involved working in rural areas with electric lines containing high-voltage current attached to tall steel towers. She was the first woman employed by the company for this position. From the beginning of her employment, she was routinely subjected to sexual harassment. Waldo's male coworkers refused to work with her because she was female, making it clear that women were not welcome at the job. The crew members would not let her use the company truck to drive to find bathrooms to use. Her male coworkers urinated outdoors, and they told her, "You want to work in a man's world, pee like a guy." Waldo's coworkers locked her in a port-a-potty by taping the doors shut. Her coworkers displayed sexually explicit calendars, playing cards, and magazines in the trucks and at her places of work. They threw her purse out the window of a moving truck, excluded her from lunch trips, ostracized and ignored her at job sites, and at times refused to speak to her or work with her. Waldo was repeatedly called derogatory and demeaning names, such as "bitch," "wench," and other gender-specific demeaning language. Waldo reported these instances to her supervisor and to the human resources (HR) department of the company, but the company did not investigate or curb such abuses. Waldo sued Consumers in U.S. district court for sexual harassment in violation of Title VII. The jury rendered a verdict in favor of Waldo, awarding her $400,000 in compensatory damages and $7,500,000 in punitive damages, which the court reduced to $300,000 based on caps on damages established by federal law. The court also awarded $684,000 in attorney's fees and $38,000 for costs and fees. Consumers appealed.

 

 

 

 

 

 

 

 

 

LAW531 Week 5 Learning Team Assignment Week 5 IRAC Brief

The week's assignment concerns briefing a case from the readings. You can pick any case from the readings. You must pick an actual court case and give the citation. The brief should concern a legal case that is relevant to the following Week 5, Agency, Employment and Labor Law, objectives.

 

Brief the case. Use the IRAC methodology. Discuss the:

 

• I: Issue
• R: Rule
• A: Analysis
• C: Conclusion

 The brief is followed by discussion of whether your team agrees or disagrees with the court opinion.

 The paper is a minimum 1000 words in length

"Waldo's working environment at Consumers was filled with discriminatory intimidation, ridicule, and insult that was sufficient to create a hostile work environment."

—Moore, Circuit Judge

Facts

Theresa Waldo was employed by Consumers Energy Company of Michigan as an electrical line worker, a position that involved working in rural areas with electric lines containing high-voltage current attached to tall steel towers. She was the first woman employed by the company for this position. From the beginning of her employment, she was routinely subjected to sexual harassment. Waldo's male coworkers refused to work with her because she was female, making it clear that women were not welcome at the job. The crew members would not let her use the company truck to drive to find bathrooms to use. Her male coworkers urinated outdoors, and they told her, "You want to work in a man's world, pee like a guy." Waldo's coworkers locked her in a port-a-potty by taping the doors shut. Her coworkers displayed sexually explicit calendars, playing cards, and magazines in the trucks and at her places of work. They threw her purse out the window of a moving truck, excluded her from lunch trips, ostracized and ignored her at job sites, and at times refused to speak to her or work with her. Waldo was repeatedly called derogatory and demeaning names, such as "bitch," "wench," and other gender-specific demeaning language. Waldo reported these instances to her supervisor and to the human resources (HR) department of the company, but the company did not investigate or curb such abuses. Waldo sued Consumers in U.S. district court for sexual harassment in violation of Title VII. The jury rendered a verdict in favor of Waldo, awarding her $400,000 in compensatory damages and $7,500,000 in punitive damages, which the court reduced to $300,000 based on caps on damages established by federal law. The court also awarded $684,000 in attorney's fees and $38,000 for costs and fees. Consumers appealed.

Issue

Is Consumers liable for sexual harassment?

Language of the Court

Based on the totality of evidence presented to the jury, the district court did not abuse its discretion in finding that the clear weight of the evidence demonstrated that Waldo's working environment at Consumers was filled with discriminatory intimidation, ridicule, and insult that was sufficient to create a hostile work environment. Additionally, it was not an abuse of discretion to find that the clear weight of the evidence demonstrated that Consumers' response to the complaints of harassment was inadequate.

Decision

The U.S. court of appeals affirmed the U.S. district court's finding of sexual harassment and the award of damages, attorney's fee, and costs.

 

 

LAW531 Week 4 Report discussing legal concepts from Brief

Using the same case your team briefed this week, discuss how the legal concepts in the selected case can be applied within a business managerial setting. Give an example from real life experiences or current events. Explain how the rule discussed in the case have impacted the industry in past and what you see for the future. Discuss the positive and negative effect the case law has made on the industry.

 The paper is a minimum 1000 words in length

 

Case: Ethics Coca-Cola Employee Tries to Sell Trade Secrets to Pepsi-Cola

LAW531- Week 4 Learning Team Assignment Week 4 IRAC Brief

The week's assignment concerns briefing a case from the readings. You can pick any case from the readings. You must pick an actual court case and give the citation. The brief should concern a legal case that is relevant to the following Week 4, Contracts and Property Law, objectives.

 

Brief the case. Use the IRAC methodology. Discuss the:

 

• I: Issue
• R: Rule
• A: Analysis
• C: Conclusion

 

 

The brief is followed by discussion of whether your team agrees or disagrees with the court opinion.

 

The paper is a minimum 1000 words in length

 

Ethics Coca-Cola Employee Tries to Sell Trade Secrets to Pepsi-Cola

"What if you knew the markets Coca-Cola was going to move into and out of and beat them to the punch."

—Letter to PepsiCo

PepsiCo received a letter sent to the company by an employee of Coca-Cola Company that offered to sell PepsiCo trade secrets of Coca-Cola. The letter stated, "What if you knew the markets Coca-Cola was going to move into and out of and beat them to the punch." The letter proposed selling trade secrets regarding a proposed Coke product code-named Project Lancelot for $1.5 million.

PepsiCo notified Coca-Cola officials and federal authorities. The Federal Bureau of Investigation (FBI) initiated an investigation into the matter. The federal government brought criminal charges against Coca-Cola secretary Joya Williams. During trial, prosecutors produced the letter as well as a video-recording of Williams putting confidential documents and samples of Coke products that were still in development into her bag.

Williams was convicted by a federal jury of conspiring to steal Coca-Cola trade secrets and attempting to sell them to archrival PepsiCo. The trial court judge sentenced Williams to 8 years in jail. The U.S. court of appeals upheld the decision. Two other co-conspirators were arrested and pled guilty. United States v. Williams, 526 F.3d 1312, 2008 U.S. App. Lexis 6073 (United States Court of Appeals for the Eleventh Circuit, 2008)

 

 

 

 

 

LAW531 Week 3 Learning Team Assignment Week 3 IRAC Brief

The week's assignment concerns briefing a case from the readings. You can pick any case from the readings. You must pick an actual court case and give the citation. The brief should concern a legal case that is relevant to the following Week 3, Torts and Criminal Law, objectives.

 Brief the case. Use the IRAC methodology. Discuss the:

 

• I: Issue
• R: Rule
• A: Analysis
• C: Conclusion

 The brief is followed by discussion of whether your team agrees or disagrees with the court opinion.

 The paper is a minimum 1000 words in length

Ethics Ouch! McDonald's Coffee Is Too Hot!

McDonald's Corporation found itself embroiled in one of the most famous negligence cases of modern times. Stella Liebeck, a 79-year-old resident of Albuquerque, New Mexico, visited a drive-through window of a McDonald's restaurant with her grandson Chris. Her grandson, the driver of the vehicle, placed the order for breakfast. When breakfast came at the drive-through window, Chris handed a hot cup of coffee to Stella. Chris pulled over so that Stella could put cream and sugar in her coffee. Stella took the lid off the coffee cup she held in her lap and the hot coffee spilled in her lap. The coffee spilled all over Stella, who suffered third-degree burns on her legs, thighs, groin, and buttocks. Stella was driven to the emergency room and was hospitalized for seven days. She required medical treatment and later returned to the hospital to have skin grafts. She suffered permanent scars from the incident.

Stella's medical costs were $11,000. Stella asked McDonald's to pay her $20,000 to settle the case, but McDonald's offered only $800. Stella refused this settlement and sued McDonald's in court for negligence for selling coffee that was too hot and for failing to warn her of the danger of the hot coffee it served. At trial, McDonald's denied that it had been negligent and asserted that Stella's own negligence—opening a hot coffee cup on her lap—had caused her injuries. The jury heard the following evidence:

·         McDonald's enforces a quality-control rule that requires its restaurants and franchises to serve coffee at 180 to 190 degrees Fahrenheit.

·         Third-degree burns occur on skin in just two to five seconds when coffee is served at 185 degrees.

·         McDonald's coffee temperature was 20 degrees hotter than coffee served by competing restaurant chains.

·         McDonald's coffee temperature was approximately 40 to 50 degrees hotter than normal house-brewed coffee.

·         McDonald's had received more than 700 prior complaints of people who had been scalded by McDonald's coffee.

·         McDonald's did not place a warning on its coffee cups to alert patrons that the coffee it served was exceptionally hot.

Based on this evidence, the jury concluded that McDonald's acted recklessly and awarded Stella $200,000 in compensatory damages, which was then reduced by $40,000 because of her own negligence, and $2.7 million in punitive damages. The trial court judge reduced the amount of punitive damages to $480,000, which was three times the amount of compensatory damages. McDonald's now places a warning on its coffee cups that its coffee is hot. Liebeck v. McDonald's Restaurants, P.T.S., Inc. (New Mexico District Court, Bernalillo County, New Mexico, 1994)