QUIZ – WHICH SEMINAR IS FOR ME?

If you feel you can answer most of these questions you are ready for the seminar for Financial Professionals, our more advanced seminar. For the answers to these questions, please click here: quiz-answ@financialaccounting.com to open your email program and send us an email. No message needed, just put the word “answers” into the subject field of the email you send.

  1. Explain how a rate regulated utility can violate normal GAAP in its financial statements.

  2. Where can you find a list of where money came from to get all of the assets of a company?

  3. Explain the difference between the following six terms: – Income – Net Income – Profit – Net Profit – Earnings – Net Earnings

  4. Cash from operating activities is the cash flow from the operating income of a company. True or False

  5. EBIT is a measure of earnings before interest and all taxes. True or False

  6. Why is it often impossible to calculate the ROE which a company may report in its annual report?

  7. What is the largest tax book temporary difference for the average utility?

  8. What tax break causes companies to build or buy more equipment than they would otherwise.

  9. What are two conceptual differences between measuring the cost of debt capital for investment decisions and for ratemaking?

  10. What is the present value of $11.5 million in 2 years at a 15% discount rate?

  11. How can you determine whether an expenditure on plant is maintenance expense or capital?

  12. Explain how the maximization of shareholder value can be achieved by a focus on free cash flow?

  13. In an incremental analysis, when there are no increments from one year to the next for a cash amount, then we do not have to consider that cash flow. True or False

  14. What is the difference between rate base and base rates?

  15. In the U.S., a rate of return regulated utility can earn more than the allowed return. How?

  16. Does the “cost of service” include profit?

  17. The Public Utility Commission typically has a surveillance activity. What is this?

  18. Rate cases occur every year for each utility. True or False?

  19. What is typically the most litigated area in a rate case?

  20. Rate of return regulation is not “cost plus” regulation. Explain

ANSWERS TO QUIZ For the answers to these questions, please click here: quiz-answ@financialaccounting.com to open your email program and send us an email. No message needed, just put the word “answers” into the subject field of the email you send.