Advanced Financial Reporting and
Analysis Test 1. Newest 2026-2027.
Questions and Correct Answers.
Graded A
= 365/ (COGS/ Avg Inventory) - ANSInventory days
= 365/ (COGS/Avg AP) - ANSAP Days
0 - ANSThe accumulated depreciation at the end of the tax table should
equal
365/(sales/ Avg Rec) - ANSAR DAYS
accounts receivable days + inventory days - AP days - ANSthe cash
conversion cycle
Bad Debt expense
Warranty expense
Unearned revenue - ANSDTA examples
beginning retained earnings + net income - dividends declared = ending
retained earnings - ANSdividends declared
1
, Cash sales
Cash paid to suppliers
Cash paid for operating expenses
Taxes paid
Interest paid - ANSdirect method operating section
changes in temporary accounts, depreciation, carry forwards, and
permanent differences - ANSgoing from ti to pti
COGS + change in inventory - change in accounts payable - ANScash to
suppliers
congress and enforced by the IRS - ANSthe US rules for determining
taxable income are set by
current tax expense - change in taxes payable - ANScash for taxes
depreciation - ANSDTL Examples
depreciation and carryback/ carryforward - ANSin the tax worksheet
remember
dividends declared , which is found from retained earnings - ANSwhen
finding the change in dividends payable, you must take into consideration
DTA - ANSBad Debt expense
2
Analysis Test 1. Newest 2026-2027.
Questions and Correct Answers.
Graded A
= 365/ (COGS/ Avg Inventory) - ANSInventory days
= 365/ (COGS/Avg AP) - ANSAP Days
0 - ANSThe accumulated depreciation at the end of the tax table should
equal
365/(sales/ Avg Rec) - ANSAR DAYS
accounts receivable days + inventory days - AP days - ANSthe cash
conversion cycle
Bad Debt expense
Warranty expense
Unearned revenue - ANSDTA examples
beginning retained earnings + net income - dividends declared = ending
retained earnings - ANSdividends declared
1
, Cash sales
Cash paid to suppliers
Cash paid for operating expenses
Taxes paid
Interest paid - ANSdirect method operating section
changes in temporary accounts, depreciation, carry forwards, and
permanent differences - ANSgoing from ti to pti
COGS + change in inventory - change in accounts payable - ANScash to
suppliers
congress and enforced by the IRS - ANSthe US rules for determining
taxable income are set by
current tax expense - change in taxes payable - ANScash for taxes
depreciation - ANSDTL Examples
depreciation and carryback/ carryforward - ANSin the tax worksheet
remember
dividends declared , which is found from retained earnings - ANSwhen
finding the change in dividends payable, you must take into consideration
DTA - ANSBad Debt expense
2
