Chapter 1 Practice Questions
1. Which type of SEC filing would you look at to determine the holdings of a large investment manager?
A. Form 13F
B. Schedule 14A
C. Form 4
D. Form 8-K
2. You are analyzing a public company and your analysis requires you to compile LTM (last 12 months) financial data for the company. Which of the following SEC filings would you typically look to for such data?
I. Form 10-K
II. Schedule 13D
III. Form 10-Q
IV. Form 3
A. I and II
B. II and III
C. III and IV
D. I and III
3. In January, Fargo Footwear pays the rent on its retail space for the entire year in exchange for a discount. Is this a current deferred asset? Why or why not?
A. Yes, because when it is paid for, it is removed from the balance sheet
B. Yes, because what was paid for will be used within a year
C. No, because payment was not deferred
D. No, because it is a deferred liability
4. Which of the following forms is used when a board member needs to sell shares in the company he is on the board of?
A. Form 3
B. Form 4
C. Schedule 13D
D. Form 13F
5. A broker-dealer acquires 5.7% ownership of ABC, Inc.’s common stock. The broker-dealer is not planning on taking over the company and is therefore considered to be a passive investor. Under the Securities Exchange Act of 1934, which of the following forms would be the most appropriate form for the broker-dealer to file?
A. Schedule 13D
B. Form 13F
C. Schedule 13G
D. Schedule 13E
6. Which of the following types of assets is least likely to be classified as a current asset on the balance sheet of XYZ Corp?
A. Money owed to XYZ by its customers for purchases made within the last month; XYZ is generous in its terms and requires payment within 180 days of purchase
B. Three forklifts XYZ uses in its warehouse
C. Raw materials XYZ has stockpiled for use in producing goods for sale
D. Commercial paper issued