1. Learner: Ashan Silva
Test Name FFAC Chapter 8 Completion Date 2015-03-05T08:43:41
Score 9.0 of 10.0 (90.00%) Timespent 00:16:15
Result Passed
Question Result / Notes
Order Name Score Notes
1 Which of the following regarding
comprehensive income is true?
0.0
2 Which of the following statements is true
about financial statements?
1.0
3 Which of the following is not true regarding
comprehensive income?
1.0
4 In Year 1, HBS, Inc. reports net income of
$2,450,000 and comprehensive income of
$3,650,000. HBS, Inc. has no foreign
operations or holdings; hence it does not
engage in hedging transactions. Its
minimum pension liability for the year was
$285,000. Unrealized gains (losses) on
investments for Year 1 were
1.0
5 Other comprehensive income is reported as
part of the
1.0
6 Recent growth in accounts receivable not
supported by growth in sales indicates
1.0
7 Over the past five years, Pinnacle Traders
has experienced an annual 10% growth in
revenues and a 20% growth in cost of sales.
This trend suggests that the
1.0
8 Stanley Financial Services reported Net
Income of $260,000 in Year 1. Stanley held
available-for-sale securities whose market
value was $340,000 in the beginning of
Year 1 and $400,000 at the end of the year.
There was no transaction on available-for-
sale securities during the year. Additionally,
Stanley engages in foreign currency
transactions and losses due to fluctuations
in the value of foreign currency amounted to
$30,000 for the year. The comprehensive
income for Year 1 is
1.0
9 For Year 1, SP Jones and Company reports
net income of $685,000. It also reports
depreciation expense of $340,000, cost of
goods sold of $220,000, foreign currency
translation losses of $340,000, and
unrealized gains on available-for-sale
securities of $520,000. Its comprehensive
income for Year 1 was
1.0
10 Which of the following statements is not
regarded as a limitation to financial
statements?
1.0
Question Notes
Printed on: 3/5/2015