Question 1: Firms that issue registered securities are required to file, with the SEC on an annual basis, which of the following?
a. An annual report.
b. A prospectus.
c. A form 10-K.
d. A set of financial statements.
e. All of these.
Question 2: Management's statement of responsibility:
a. usually refers to the company's system of internal controls.
b. emphasizes that the auditors are responsible for the financial statements.
c. includes a disclaimer of responsibility for the level of the P/E ratio of the company's common stock.
d. gives the president of the company an opportunity to explain why profits changed.
Question 3: The independent auditors' report usually:
a. presents a "clean bill of health" for the company.
b. refers to the quality of the company's products or services.
c. includes an opinion that the financial statements are correct.
d. includes an opinion that the financial statements present fairly, in all material respects, financial information about the company.
Question 4: Book value per share of common stock of a manufacturing company:
a. is not a very useful measure most of the time.
b. is calculated by dividing market value per share by earnings per share.
c. reflects the fair market value of the company's stock.
d. is the same as the total balance sheet asset value per share of common stock.