1D Public Company

Question 1

Form 10-Q

Answer 1

Used for quarterly reports. Similar to annual information but less detailed and usually unaudited.

Question 2

Form 10-K

Answer 2

Annual reports.

Question 3

Form 8-K

Answer 3

Announce major events that shareholders should know about.

Question 4

Non-accelerated filer

Answer 4

Less than $75 milliion in market capitalization

10-K deadline: 90 days
10-Q deadline: 45 days

Question 5

Accelerated filer

Answer 5

Greater than $75 milliion but less than $700 million in market capitalization

10-K deadline: 75 days
10-Q deadline: 40 days

Question 6

Large accelerated filer

Answer 6

Greater than $700 milliion in market capitalization

10-K deadline: 60 days
10-Q deadline: 40 days

Question 7

Significant components of Form 10-Q

Answer 7

Part I - Financial Information - (Financial Statements, Mgmt discussion and analysis, disclosure about market risk, controls and procedures)

Part II - Other Information - (legal proceedings, risk factors, unregistered sales of equity securities, defaults on senior securities, mine safety disclosures, other information, exhibits)

Question 8

Significant components of Form 10-K

Answer 8

Part I (business, risk factors, unresolved staff comments, properties, legal proceedings, mine safety disclosures)

Part II (Market for equity, financial data, Mgmts discussion and analysis, disclosure about market risk, financials, changes/disagreements with accountants)

Part III (Corporate governance, executive compensation, security ownership, certain relationships, director independence, accounting fees.

Part IV (exhibits, financial schedules)

Question 9

Discrete view of interim reporting

Answer 9

each interim period is treated as a separate accounting period (IFRS)

Question 10

Integral view of interim reporting

Answer 10

interim periods are viewed in context of annual reporting (US GAAP)

Question 11

Reportable Segment tests

Answer 11

10% or more of

  a. Combined Revenue
  b. Absolute value of profit/loss
  c. Combined Assets

Total reportable segments must cover 75% or more of consolidated sales

Question 12

Traceable costs

Answer 12

directly related to a segment

Question 13

common costs

Answer 13

apply to all segments

Question 14

Reportable operating segment disclosures

Answer 14

1. Revenue (internal, external, interest, equity in earnings)
2. Expenses (interest, depreciation, taxes)
3. Profits
4. Assets, expenditures for assets, equity method investments
5. Unusual and/or infrequent items

Question 15

Basic EPS

Answer 15

Net income - CY preferred dividends
_______________
Weighted average number of shares outstanding

Question 16

Diluted EPS

Answer 16

Net income - CY preferred dividends + after tax interest on convertible debt
_______________
Weighted average number of shares outstanding + potentially dilutive common shares

Question 17

Simple capital structure

Answer 17

does not contain any potentially dilutive securities and only basic EPS is required.

Question 18

Complex capital structure

Answer 18

contains potentially dilutive securities. Both basic EPS and diluted EPS are required

Question 19

Stock dividends and stock splits are not weighted

Answer 19

True. Exception: If shareholder can receive either stock or cash with stock dividend, treat as if shares outstanding.

Question 20

Treasury stock is never a part of EPS

Answer 20

True.

Question 21

Included in CY preferred dividends for basic EPS

Answer 21

1. Dividends on preferred stock
2. Dividends in arrears
3. Down round features

Question 22

Unless actually converted, assume convertible bonds, convertible preferred stock, stock options and warrants are converted at the beginning of the year.

Answer 22

True

Question 23

For options and warrants, if the exercise price exceeds the market price…

Answer 23

the security is anti-dilutive and increases EPS.