ACCT5907 Quiz Answer TemplateR

Java Python ACCT5907 Quiz Answer Template:

Skill1: Filter and identify relevant information that is likely to move the price of the company’s stock.

(1) What one (1) information in the Earnings Announcement could be considered good news to investors? Give your reason. (1 mark)

(2) What one (1) information in the Earnings Announcement could be considered bad news to investors? Give your reason. (1 mark)

(3) Prediction: what is the most important item of information from the earnings announcement that will help investors predict the future performance/result of the company, and why? (1 mark)

Skill2: Compare performance with respect to relevant benchmarks, e.g. year-on-year, sequential and expectations.

(4) What is the year-on-year change in net income for the quarter? (1 mark)

(5) What is the quarter-on-quarter change in net income for the quarter? (1 mark)

Note: 1 mark for 1 point is the standard for this course.

Skill3: Conduct analysis using the Financial Reporting and Earnings Quality (FREQ) framework:

Usindai 写ACCT5907 Quiz Answer TemplateR g the Financial Reporting and Earnings Quality (FREQ) framework, analyse and identify ONE issue (only). [Note: giving more than ONE gives me the impression that you do not know the answer and are just throwing darts at the target, and will get zero marks because the explanation, inference and adjustment flows from your ONE answer and may not logically follow if you give more than ONE.]

(6) FREQ label: principles of financial reporting/ earnings quality addressed (1 mark)

(7) FREQ explanation: (1 mark). Note that both answers to (1) and (2) must be correct and consistent to earn these marks.

(8) INFERENCE: how to detect & understand the problem. (1 mark)

(9) ADJUST: if the information was available, adjust the information and calculate the figure; if the information is not available describe the steps and the information you would need to adjust the relevant figure, or to obtain the relevant information. (1 mark)

(10) RESPONSE: how to respond to the problem. (1 mark)

[Do not worry if in typing in your answers, you change the length of this document. This was original designed for in-class hardcopy handwriting and the lines and space was to guide students on how much to write. I do not expect your answers to be very long and only expect at most 3 lines of writing for each mark to be earned. You may write in bullet-points