CPE Quiz

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CPE ARTICLE: KEY PERFORMANCE INDICATORS AND NON-GAAP MEASURES

By: Josef Rashty

Today’s CPA offers the self-study exam for readers to earn one hour of continuing professional education credit. The questions are based on technical information from the preceding article. If you score 70 or better, you will receive a certificate verifying you have earned one hour of CPE credit – granted as of the date the test arrived in the TXCPA office – in accordance with the rules of the Texas State Board of Public Accountancy (TSBPA). If you score below 70, you will receive a letter with your grade.

1. In 2020, the SEC issued a new guidance for _____________ a.GAAP measurements b.Key Performance Indicators c. Both a and b d.Neither a nor b

2. Key Performance Indicators are similar to non-GAAP measurements ___________ a.In form b.In substance c. For disclosure requirements d.All of the above 10. Non-GAAP disclosures have __________ in SEC comment letters.

3. Identify which of the following is not applicable to KPI: a.The SEC expects a clear definition of KPI metric b.The SEC requires a statement indicating the reasons why the metric provides useful information c. The SEC requires reconciliation of KPI to GAAP data d.The SEC requires disclosure of how management uses the KPI

4. Regulation G is applicable to ____________ a.KPIs b.KPIs disclosed in MD&A c. KPIs disclosed in Form 8-K d.Non-GAAP measures

5. Item 10 requires _____________________ a.Reconciliation of non-GAAP measures to GAAP measures b.Reconciliation of KPIs to GAAP measures c. Both a and b d.Neither a nor b

6. Non-GAAP presentations, compared to KPI presentations, are subject to __________ restrictions subject to Regulation G and Item 10. a.Similar b.Additional c. No d.None of the above

7. The COVID-19 pandemic may require __________ disclosures for KPI presentations. a.No b.Comparative c. Dilutive 8. MobileIron defines ARR as a _________________ a.GAAP measure b.Non-GAAP measure c. Ratio required by the SEC d.KPI

9. MobileIron has disclosed its free cash flow as a _____________ a.KPI b.Non-GAAP measure c. GAAP measure d.Neither a nor b

d.Additional a.Been rarely mentioned b.Never been mentioned c. Not been relevant d.None of the above

To receive your CPE certificate by email, please provide a valid email address for processing.

Please mail the test (photocopies accepted) along with your check to: Today’s CPA; Self-Study Exam: TXCPA CPE Foundation Inc.; 14651 Dallas Parkway, Suite 700; Dallas, Texas 75254-7408. TSBPA Registered Sponsor #260 Name: ___________________________________________________________ Company/Firm: __________________________________________________ Address (Where certificate should be mailed): City/State/ZIP: ___________________________________________________ Email Address: ___________________________________________________

Make checks payable to The Texas Society of CPAs ❑ $15 (TXCPA Member) ❑ $20 (Non-Member) Signature: _______________________________________________________ TXCPA Membership No: _________________________________________