Accounting and Financial Statement Analysis Exam

Review Questions 16, 17, 21, and 22: They have incorrect answers and explanations.
Question 16: EBIT is asked and D&A is reduced from Revenue, which as per my understanding is wrong and holds true if EBITDA is asked. For EBIT it should be Revenue- COGS-SG&A.

Question 17: Service is due yet revenue is received. Ideally, this scenario should be noted as "Unearned Revenue" and if it's not available in options we can note it as "Prepaid expense" as the service is due. ( Wrong but no choice from options).

Accrued Revenue is used when service is completed but revenue is yet to be received.

Question 21: DSO:  60.52 is the correct solution after the calculation and not 59.69 days. (Instead of 365 days, 360 days are taken as a factor)

Question 22: None of the options are correct, as the above assumption of 360 days is considered for answering.