Acc 573 Enhance teaching / snaptutorial.com

ACC 573 Final Exam Guide
For more classes visits
www.snaptutorial.com
To calculate a company's average tax rate an analyst would
The accumulated benefit obligation measures
The major difference between accounting for pensions and the
accounting for other postretirement benefits is that firms
Which of the following is not part of the balance sheet approach when
computing income tax expense?
The assessment of earnings quality is best accomplished through the use
of which one of the following?
Firm's choices and estimates within U.S. GAAP should be determined
by
The date on which a firm commits itself to a formal plan to dispose of a
segment is the
Which of the following statements does not apply to preventing
“garbage in, garbage out” when implementing a forecasting game plan
Nichols and Wahlen's 2004 study showed that superior forecasting
provides the potential to earn superior security returns. Nichols and
Wahlen's findings indicate
Common-size financial statements recast each statement item as

Financial statement forecasts rely on additivity within financial
statements and articulation across financial statements. Given this
information sales growth forecasts will most likely affect growth in
Equity-based valuation models are based on all metrics except
If a firm has a market beta of 0.9, is subject to an income tax rate of 35
percent, has a risk-free rate of 6 percent, a market risk premium of 7
percent, and has a market value of debt to market value of equity ratio of
60 percent, what does the market expect the firm to generate in terms of
equity returns using CAPM?
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:
A disadvantage of the free cash flow valuation method i
Operating assets include all of the following except
The conceptual framework for free cash flows separates the balance
sheet equation into the following categories:
If an analyst wants to value a potential investment in the net operating
assets of a division of another firm, the analyst should discount the
projected free cash flows at the
Residual income in a long-run steady-state growth period is referred to
as:
The two most popular discounted earnings models appear to be
Residual income is
The market price of a share of common equity reflects
Strictly speaking, the price-earnings ratio assumes that firm value is the
Valuation using market multiples captures
Under the value-to-book model new projects will be abnormally
profitable only when
**************************************************

ACC 573 Midterm Exam Guide
ACC 573 Midterm Exam Guide
The two categories of shareholders' equity usually found on the balance
sheet of a corporation are
When a firm attempting to create unique products or services for
particular market niches, in order to achieve relatively high profit
margins, this is best known as
Which of the following economic characteristics is consistent with a
pharmaceutical company?
Which of the following economic characteristics is consistent with a
commercial bank?
Which of the following assets appears on the balance sheet at fair value?
The use of acquisition cost as a valuation method is justified on the basis
that acquisition cost is:
U.S. GAAP, IFRS, and other major accounting standards are best
characterized as
Toro Company recognized $655,000 of cost of goods sold in 2010, in
addition its implementation of a just-in-time inventory system allowed it
to reduce its inventory from $325,000 at the beginning of the year to
$230,000 at the end of 2010. How much cash did Toro spend for
inventory in 2010?

Free cash flows to all debt and common equity shareholders represents
the excess of cash flows from
Normally, cash flows from financing will start using cash during which
phase of the product life cycle?
When preparing the statement of cash flows using the indirect method,
an increase in inventories would appear as
Which of the following scenarios is consistent with a increasing cost of
goods sold to sales percentage and increasing inventory turnover
Which of the following industries would you expect to have, on average,
high asset turnover and low profit margin?
One important difference between return on assets (ROA) and return on
common shareholder’s equity (ROCE) is
Sustainable earnings represent
Non-U.S. companies that list securities in the United States typically
include a risk factors item in the:
Economic theory teaches that differences in market returns must relate
to differences in
One common problem with the current ratio is that it is susceptible to
"window dressing." If prior to the end of the accounting period Saxon
Company has a current ratio of 1.5 and management wishes to boost its
current ratio it may decide to
Which kind of dividends have an interest-bearing promise to pay
dividends?
Which of the following is the date on which a company determines the
owners of the stock that will receive a dividend?
Which of the following is the typical tradeoff when issuing preferred
stock?
An analyst can estimate the average total life of depreciable assets by
Which of the following is the least effective way for an analyst to
understand whether existing long-lived assets must be replaced?
When a foreign entity has the U.S. dollar as its functional currency, it
uses which exchange rate to translate monetary assets and liabilities?
The method used to account for oil and gas exploration costs that
capitalizes the exploration costs of productive wells

**************************************************
ACC 573 Week 1 DQ 1
Based on your review of the SEC reporting requirements as outlined in
the Sarbanes-Oxley Act, assess the adequacy of the reporting
requirements for providing credible financial and operating information
for company stakeholders and potential investors, indicating any gaps
identified in the reporting. Provide support for your rationale.
**************************************************
ACC 573 Week 1 DQ 2

Assess how the GAAP and IFRS convergence project has impacted SEC
reporting requirements, predicting the long-term impact of the
convergence on reporting. Provide a rationale for your prediction.
**************************************************
ACC 573 Week 2 DQ 1
As a CFO of a publically traded company, suggest how you would
create an ethical environment to ensure account balances are correctly

valued and reported so that information is reliable for users. Provide
support for your rationale.
Assess the ethical requirements as outlined in the Sarbanes-Oxley Act,
indicating whether or not you believe the requirements are adequate to
ensure integrity in financial accounting and reporting activities. Suggest
improvements that may be needed while providing support for your
rationale.
**************************************************
ACC 573 Week 2 DQ 2
In today’s business environment where publicly traded companies feel
pressure to meet short-term earnings expectations, management may be
tempted to “manage earnings”. Assess how a financial statement user
may be able to detect managed earnings when reviewing the firm’s
balance sheet, income statement, and cash-flow statement. Indicate how
a potential investor might interpret these “red-flags”. Provide support for
your rationale.

Assess how the Sarbanes-Oxley Act addresses the concern of corporate
“managed earnings”, indicating whether or not you believe the
requirements within the Act are sufficient to minimize these concerns.
Provide support for your rationale.
**************************************************
ACC 573 Week 3 Assignment 1 Financial
Statement Restatement and Ethics
Write a two to three (2-3) page paper in which you:
Assess the factors that contributed to the financial statement restatement,
signifying the executive management team’s attitude toward the
restatement. Suggest how the restatement may have been avoided during
the initial reporting process.
Explain the impact to the company’s stock price when the restatement
was released and to future earnings forecast, indicating whether or not
you believe the impact to the stock price was justified.

Evaluate the restatement in terms of management’s ethical violations
according to the requirements of the Sarbanes-Oxley Act, providing
recommendations to management on how to avoid these problems in the
future. Provide support for your recommendations.
Use at least two (2) quality academic resources in this assignment. Note:
Wikipedia and other Websites do not quality as academic resources.
**************************************************
ACC 573 Week 3 DQ 1
As part of the Sarbanes-Oxley Act, corporate officers are no longer able
to “pass the buck” of responsibility for ensuring adequate controls over
financial statements and reporting activities thus ensuring the accuracy
of financial statements. Assess the adequacy of the provisions contained
within the Act, indicating whether or not you believe requirements will
improve the accuracy of financial statements and reporting. Provide

Given the requirements contained in the Act for CEO and CFOs to
certify the adequacy of controls and financial statement accuracy,
evaluate your comfort level with this requirement should you become a
CFO of a publically traded company. Provide support for your rationale.
**************************************************
ACC 573 Week 4 DQ 1
Based on your review of the current requirements of the SEC and FASB,
assess the adequacy of the guidelines for ensuring the transparency of
off-balance-sheet transactions to investors, indicating where
improvements may still be needed. Provide support for your rationale.
As a CFO of a publically traded company, evaluate the pros and cons of
using off-balance-sheet financing, including a recommendation as to
whether or not you support using these types of arrangements. Provide
support for your recommendation.

**************************************************
ACC 573 Week 4 DQ 2
Based on the information found in the e-Activity, assess the key
differences between U.S. GAAP and IFRS reporting for the testing of
asset impairment and the requirement to write down the asset value.
Indicate whether or not you support the U.S. GAAP or IFRS approach.
Provide support for your position.
As an investor, recommend a strategy for evaluating long-lived asset
values contained on the balance sheet of a publically traded company so
as to minimize the risk to the investor. Provide support for your strategy.
**************************************************
ACC 573 Week 5 DQ 1

Create an argument for the use of Fair Market Accounting as opposed to
historical cost. Provide support for your argument.
Evaluate the effectiveness of the accounting principle guidelines for
determining the market value of an asset, indicating improvements to
these guidelines. Provide support for your recommendations.
Create an argument for the use of Fair Market Accounting as opposed to
historical cost. Provide support for your argument.
**************************************************
ACC 573 Week 5 DQ 2

Assess the risks associated with derivatives instruments, indicating how
these risks may be minimized for a publically traded company. Provide
As an investor, assess the potential financial concerns to be raised when
reviewing the financial statements of a publically traded company
containing derivative instruments providing a recommendation for how
the concerns may be identified and addressed.
we have to get ACC 573 DQs tomorrow and ACC 575 all quizzes+ one
assignment
**************************************************
ACC 573 Week 6 DQ 1

The Sarbanes-Oxley (SOX) Act was created with the intent of
improving the quality of accounting, reliability of financial statements to
investors, and providing oversight to accounting professionals through
the creation of a new federal agency, Public Accounting Company
Oversight Board (PACOB). Create an argument supporting whether
SOX achieved these goals, and whether financial data reported today is
more accurate and reliable than prior to the Act. Provide support for
your rationale.
Assess the impact to the Public Accounting Profession with the creation
of the PACOB and the inability of the profession to be self-regulated.
Indicate your level of support for the federal regulation of the
profession. Provide a rationale for your response.
**************************************************
ACC 573 Week 6 DQ 2

Assess the impact to public trust when a publically traded company
restates its financial data, indicating how negative impressions may be
minimized. Provide support for your rationale.
Evaluate the current trend of companies restating financial statements.
Indicate the key drivers of this trend. Predict the trend over the next five
years, providing support for your rationale.
**************************************************
ACC 573 Week 7 Assignment 2 Accounting
Quality
Write a four to five (4-5) page paper in which you:
1. Assess the roles of the Board of Directors and Chief Executive
Officer of a public company for establishing an ethical
environment that generates quality accounting and reliable
financial reporting for use by shareholders and investors. Provide
support for your assessment.

2. Recommend a strategy for a CEO to implement, leading to an
ethical environment that leads to high-quality accounting,
reporting, and forecasting. Provide support for your
recommendation.
3. Suggest how corporate management can provide assurances to
investors that the performance forecast and expected earnings will
be realized, minimizing the volatility of the stock price. Provide
support for your suggestions.
4. Evaluate the consequences to a publically traded company when
there is a lack of quality within financial accounting and reporting,
indicating how these consequences may be minimized. Provide
support for your answer.
5. Assess the requirements of the Sarbanes-Oxley Act related to
accounting quality, indicating whether or not you believe the
requirements are sufficient to protect stockholders and potential
investors. Provide support for your position.
Use at least five (5) quality academic resources in this assignment. Note:
Wikipedia and other Websites do not quality as academic resources.
**************************************************
6.
ACC 573 Week 7 DQ 1

Assess the financial performance forecasting process, identifying the
assumptions made that are most likely to cause a gap between the
forecast and actual performance. Indicate how these gaps may be
minimized. Provide support for your rationale.
Create an argument supporting the value of forecasting to an
organization. Provide support for your argument.
**************************************************
ACC 573 Week 7 DQ 2
Assess the market and shareholder behaviors when a publically traded
company makes the decision not to pay dividends to its shareholders,
suggesting how management should react to these behaviors. Provide
Evaluate the factors that an investor may consider when deciding
whether or not to invest in a company with a policy of non-dividend

payments. Indicate whether or not you believe this a prudent choice for
some investors. Provide support for your rationale.
**************************************************
ACC 573 Week 8 DQ 1
Create an argument that use of the present value free cash-flow method
has a more beneficial economic meaning than earnings-based methods.
Provide support for your argument.
Assess the challenges related to using the present value of the free cash-
flow valuation method in practice, suggesting how each of these
challenges may be overcome. Provide support for your rationale.
**************************************************

ACC 573 Week 8 DQ 2
Assess how the free cash-flow method can be used when a company is
profitable yet the cash-flow values are expected to be negative over the
next five years, indicating the likely impact on the valuation. Provide
Assess which cash-flow variables are the most sensitive to change and
the likely impact on a firm’s valuation. Provide support for your answer.
**************************************************
ACC 573 Week 9 DQ 1

Create an argument supporting that using the earnings-based valuation
method yields the most accurate results. Provide support for your
argument.
Assess the challenges related to using the earnings-based valuation
method in practice, suggesting how each of these challenges may be
overcome. Provide support for your rationale.
**************************************************
ACC 573 Week 9 DQ 2
Evaluate the likely impact on a firm’s valuation when using U.S. GAAP
versus IFRS accounting methods, indicating which accounting standards

you believe may yield a more favorable result. Provide support for your
position.
Determine how a firm’s valuation using the earnings-based valuation
method would be impacted when using aggressive versus conservative
accounting. Provide evidence supporting your conclusion.
**************************************************
ACC 573 Week 10 Assignment 3 Company
Valuation (Facebook IPO)
Assess how the GAAP and IFRS convergence project has impacted SEC
reporting requirements, predicting the long-term impact of the
convergence on reporting. Provide a rationale for your prediction.
**************************************************

ACC 573 Week 10 DQ 1
• Create an argument supporting that using the market-based
valuation method yields the most accurate results. Provide support for
your argument.
• Assess the challenges related to using the market-based
valuation method in practice, suggesting how each of these challenges
may be overcome. Provide support for your rationale.
**************************************************

Acc 573 Enhance teaching / snaptutorial.com

More Related Content

What's hot (20)

Similar to Acc 573 Enhance teaching / snaptutorial.com (20)

Recently uploaded (20)

Acc 573 Enhance teaching / snaptutorial.com