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True/Falseto the left of each statement T or F (1 point each)
1. Annual reports of public and non-public companies can be found on the SEC’s
2. The SEC requires all companies, both public and private, to file a Form 10-K report annually.
3. Financial statements are currently prepared in the U.S. according to International Financial Reporting Standards.
4.A multiple-step income statement presents several intermediate profit measures that investors and analysts may find useful.
5. The common size income statement expresses each income statement item as a percentage of net sales.
6.Selling and administrative expenses include such items as advertising, salaries, and interest expense.
7.Pro forma income has a standard definition issued by the SEC that is followed by all companies reporting pro forma numbers.
8.Regulation G requires companies to follow certain rules when recording non-GAAP earnings numbers.
9.Companies have incentive to make one-time losses look recurring and one-time gains look non-recurring
10.Extraordinary items are no longer required to be disclosed separately as a “below the line item” for fiscal periods after Dec 31, 2015.
11.An AAER (Accounting and Auditing Enforcement Release) was issued for Diamond Foods after the company manipulated their financial statements to hide the increasing cost of walnuts.
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