Please give us the following details to complete your Test. Date & Time of Test: 9/3/2012 Time Zone with Country Name: Houston time. USA Number of MCQs: 30 Number of questions and Length of short...

1. If a company receives an unqualified audit opinion it means the auditors: (Points : 3)
       did not complete a full audit and therefore do not feel qualified to give an opinion on financial statements.
       are providing assurance that the company will remain financially viable for at least the next year.
       are providing assurance that the company's financial statements fairly present company's financial performance and position.
       are providing assurance that the company's financial statements are free from misstatement, fraudulent accounting and fairly indicate future performance.
        2. The semistrong efficiency of market implies that: (Points : 3)
       stock prices fully reflect all inside information.
       stock prices do not reflect information contained in past trading volume.
       stock prices fully reflect all information found in 10-K filing.
       stock prices fully reflect all information about future price changes.
        3. Economic income includes: (Points : 3)
       recurring components only.
       nonrecurring components only.
       both recurring and nonrecurring components.
       neither recurring nor nonrecurring components.
    
        5. Which of the following ratios would be considered useful in assessing operating profitability? (Points : 3)
       Debt/Equity ratio
       Acid test ratio
       Gross profit margin
       Return on equity
        6. When analyzing financial statements it is important to recognize that accounting distortions can arise. Accounting distortions are those things that cause deviations in accounting information from the underlying economics. Which of the following statements is not correct? Accounting distortions: (Points : 3)
       can arise as management may deliberately manipulate financial statements.
       arise often through application of (correct) accounting principles.
       can affect the quality of earnings.
       arise if the stock market is not efficient.
    
        8. Two otherwise equal...