【正文】 1Students Random Number : _________________________________ MSc IN APPLIED FINANCE Financial Statements Analysis INSTRUCTIONS TO STUDENTS 1 The time allowed for this examination paper is hours. 2 This examination paper contains thirtyfour (34) multiplechoice questions and three analytic questions. You are REQUIRED to answer ALL questions. No marks will be deducted for wrong answers. 3 Please select the most suitable answer to each question by shading your answer with pencil only in the answer sheet provided. 4 This is a closedbook examination. You are allowed to use a financial calculator. 5 There are ten (10) printed pages including this instruction sheet. 6 You are required to return the full set of question paper at the end of the examination. Please write your name on the top right hand corner of this instruction sheet. 一、 Single Choices （ points for each question, 51 points in total） 1. As a general rule, revenue is normally recognized when A. It is measurable B. It is measurable and received, C. The measurement process is plete. D. The earnings process is plete and cash receipt is assured. 2 2. If a pany recognizes revenue earlier than justified under accrual accounting, which of the following best describes the impact on accounts receivable and equity, respectively? Accounts Receivable Equity A. Overstated Overstated B. Overstated Understated C. Understated Overstated D. Understated Understated 3. If a pany uses the pleted contract method rather than the percentageofpletion method for a threeyear contract, the ine and cash from operations the pany recognizes in the first year are: A. will be greater and higher respectively, if the pletedcontract method is used B. will be lower and the same respectively, if the pletedcontract method is used C. will be the same for both methods D. will be lower and lower respectively, if the pletedcontract method is used 4. For a material item to be classified as an extraordinary item on the ine statement, the item must be: A. estimated and probable B. unusual in nature and infrequent in occurrence C. probable and infrequent in nature D. current and unusual in frequency 5. In the statement of Cash Flows, which of the following best describes whether interest paid and dividends paid, respectively, are classified as operating or investing cash flows? Dividends paid Interest paid A. Operating Operating B. Operating Financing C. Financing Operating D. Financing Financing 6. Among the following items, which is added to ine for calculation of cash flows from operating activities in the indirect method? A. Increase of inventory B. Decrease of prepaid expenses C. Decrease of dividend paid D. Increase of accounts receivable 7. The following information was available for the B Inc. for 2022: Net ine 132 Exchanged equity for debt 34 Increase in inventory 42 Increase in accounts payable 30 Retirement of mon stock 45 Depreciation expense 25 What was B cash flow from operations? 3 A. 229 B. 145 C. 169 D. 184 8. Which of the following is NOT reported as a noncash tr