Question 1

A value chain for an industry sets forth:

Accepted Answer

A)  The layers of management the needed to be successful 
B)  Sequence of activities involved in the creation, manufacture, and distribution of its products. 
C)  Sequence of activities involved in a firm's research and development activities. 
D)  Whether the industry is horizontally or vertically integrated. 
A)  The layers of management the needed to be successful 
B)  Sequence of activities involved in the creation, manufacture, and distribution of its products. 
C)  Sequence of activities involved in a firm's research and development activities. 
D)  Whether the industry is horizontally or vertically integrated.

Question 2

What is the principal activity of security analysts?

Accepted Answer

A)  To assign credit ratings. 
B)  To apply IFRS adjustments. 
C)  To value firms. 
D)  To assess the need for audits. 
A)  To assign credit ratings. 
B)  To apply IFRS adjustments. 
C)  To value firms. 
D)  To assess the need for audits.

Question 3

All of the following are reasons that pharmaceutical companies have higher barriers for entry than grocery stores except :

Accepted Answer

A)  There is lengthy government testing and approval required. 
B)  Research and development is a lengthy and uncertain process. 
C)  Patent protection is needed for exclusive rights. 
D)  The largest asset is typically capital intensive Property, Plant and Equipment. 
A)  There is lengthy government testing and approval required. 
B)  Research and development is a lengthy and uncertain process. 
C)  Patent protection is needed for exclusive rights. 
D)  The largest asset is typically capital intensive Property, Plant and Equipment.

Question 4

Which financial statement for a business would you look at to determine the company's earnings performance during an accounting period?

Accepted Answer

A)  Balance sheet. 
B)  Income statement. 
C)  Statement of cash flows. 
D)  The Management Assessment. 
A)  Balance sheet. 
B)  Income statement. 
C)  Statement of cash flows. 
D)  The Management Assessment.

Question 5

Under the Sarbanes-Oxley Act of 2002, financial statements must include both a Management Assessment and an Assurance Opinion. What information do the Management Assessment and an Assurance Opinion provide to financial statement users?

Accepted Answer

The Management Assessment makes explicit

Question 6

On a common size basis, which of the following assets is normally largest for an electric utility?

Accepted Answer

A)  Accounts receivable 
B)  Inventory 
C)  Property, Plant and Equipment 
D)  Cash and Marketable Securities 
A)  Accounts receivable 
B)  Inventory 
C)  Property, Plant and Equipment 
D)  Cash and Marketable Securities

Question 7

Normally, intense rivalries have a tendency to reduce ____________________.

Accepted Answer

The answer of Normally, intense rivalries have a tendency to...

Question 8

Which of the following is not an activity reported in the Statement of cash Flows?

Accepted Answer

A)  Operating 
B)  Investing 
C)  Manufacturing 
D)  Financing 
A)  Operating 
B)  Investing 
C)  Manufacturing 
D)  Financing

Question 9

When a company sells a subsidiary or a product line on what financial statement is it reported and how is it reported?

Accepted Answer

The sale of a company's subsid

Question 10

Which financial statement would you look at to determine whether a company will be able to pay for the goods when payment is due in 30 days?

Accepted Answer

A)  Statement of cash flows. 
B)  Statement of stockholders' equity. 
C)  Income statement. 
D)  Balance sheet. 
A)  Statement of cash flows. 
B)  Statement of stockholders' equity. 
C)  Income statement. 
D)  Balance sheet.

Question 11

What are three activities reported in the statement of cash flows and what information does each activity provide?

Accepted Answer

1. Operating activities - Provides infor

Question 12

The third step in financial statement analysis is to assess the quality of the firm's financial statements. Which of the following is a question an analyst should ask when performing this step?

Accepted Answer

A)  Are industry sales growing rapidly or slowly? 
B)  Do earnings include revenues that appear mismatched with the business model employed by the firm? 
C)  Does the industry include a large number of firms selling similar products? 
D)  What is the company's degree of geographical diversification? 
A)  Are industry sales growing rapidly or slowly? 
B)  Do earnings include revenues that appear mismatched with the business model employed by the firm? 
C)  Does the industry include a large number of firms selling similar products? 
D)  What is the company's degree of geographical diversification?

Question 13

The higher the value added from any activity, the higher should be the ____________________ from engaging in that activity.

Accepted Answer

The answer of The higher the value added from any...

Question 14

Extraordinary gains and losses arise from events that have all the following characteristics except :

Accepted Answer

A)  They are unusual given the nature of the firm's activity. 
B)  They are nonrecurring. 
C)  They are material in amount. 
D)  They result from terminated involvement in a line of business. 
A)  They are unusual given the nature of the firm's activity. 
B)  They are nonrecurring. 
C)  They are material in amount. 
D)  They result from terminated involvement in a line of business.

Question 15

Many people view the balance sheet as being a representation of a firm's economic position. What are some issues that reduce the quality of this representation?

Accepted Answer

1. Many valuable resources of a firm tha

Question 16

____________________ assets include the rights established by law or contract to the future use of property.

Accepted Answer

The answer of ____________________ assets include the rights established by...

Question 17

Statements that express all items in a particular financial statement as a percentage of some common base are called _________________________ statements.

Accepted Answer

The answer of Statements that express all items in a...

Question 18

Why is the operating activities section of the statement of cash flows often believed to be the most important part of the statement?

Accepted Answer

A)  Because it shows the dividends that have been paid to stockholders. 
B)  Because it indicates a company's ability to generate cash from sales to meet current cash payments for goods or services. 
C)  Because shows the net increase or decrease in cash during the period. 
D)  Because it gives the most information about how operations have been financed. 
A)  Because it shows the dividends that have been paid to stockholders. 
B)  Because it indicates a company's ability to generate cash from sales to meet current cash payments for goods or services. 
C)  Because shows the net increase or decrease in cash during the period. 
D)  Because it gives the most information about how operations have been financed.

Question 19

The ______________________________ sets forth the sequence of activities involved in the creation, manufacture and distribution of its products and services.

Accepted Answer

The answer of The ______________________________ sets forth the sequence of...

Question 20

______________________________ relates to the relative number of buyers and sellers in a particular industry.

Accepted Answer

The answer of ______________________________ relates to the relative number of...

A value chain for an industry sets forth:

What is the principal activity of security analysts?

All of the following are reasons that pharmaceutical companies have higher barriers for entry than grocery stores except :

Which financial statement for a business would you look at to determine the company's earnings performance during an accounting period?

Under the Sarbanes-Oxley Act of 2002, financial statements must include both a Management Assessment and an Assurance Opinion. What information do the Management Assessment and an Assurance Opinion provide to financial statement users?

On a common size basis, which of the following assets is normally largest for an electric utility?

Normally, intense rivalries have a tendency to reduce ____________________.

Which of the following is not an activity reported in the Statement of cash Flows?

When a company sells a subsidiary or a product line on what financial statement is it reported and how is it reported?

Which financial statement would you look at to determine whether a company will be able to pay for the goods when payment is due in 30 days?

What are three activities reported in the statement of cash flows and what information does each activity provide?

The third step in financial statement analysis is to assess the quality of the firm's financial statements. Which of the following is a question an analyst should ask when performing this step?

The higher the value added from any activity, the higher should be the ____________________ from engaging in that activity.

Extraordinary gains and losses arise from events that have all the following characteristics except :

Many people view the balance sheet as being a representation of a firm's economic position. What are some issues that reduce the quality of this representation?

____________________ assets include the rights established by law or contract to the future use of property.

Statements that express all items in a particular financial statement as a percentage of some common base are called _________________________ statements.

Why is the operating activities section of the statement of cash flows often believed to be the most important part of the statement?

The ______________________________ sets forth the sequence of activities involved in the creation, manufacture and distribution of its products and services.

______________________________ relates to the relative number of buyers and sellers in a particular industry.

Asset and Liability Valuation and Income Recognition

Income Flows Versus Cash Flows: Understanding the Statement of Cash Flows

Profitability Analysis

Risk Analysis

Financing Activities

Investing Activities

Operating Activities

Accounting Quality

Forecasting Financial Statements

Risk-Adjusted Expected Rates of Return and the Dividends Valuation Approach

Valuation: Cash-Flow Based Approaches

Valuation: Earnings-Based Approaches

Valuation: Market-Based Approaches

Filters

Exam 1: Overview of Financial Reporting, Financial Statement Analysis, and Valuation

A value chain for an industry sets forth:

What is the principal activity of security analysts?

All of the following are reasons that pharmaceutical companies have higher barriers for entry than grocery stores except :

Which financial statement for a business would you look at to determine the company's earnings performance during an accounting period?

Under the Sarbanes-Oxley Act of 2002, financial statements must include both a Management Assessment and an Assurance Opinion. What information do the Management Assessment and an Assurance Opinion provide to financial statement users?

On a common size basis, which of the following assets is normally largest for an electric utility?

Normally, intense rivalries have a tendency to reduce ____________________.

Which of the following is not an activity reported in the Statement of cash Flows?

When a company sells a subsidiary or a product line on what financial statement is it reported and how is it reported?

Which financial statement would you look at to determine whether a company will be able to pay for the goods when payment is due in 30 days?

What are three activities reported in the statement of cash flows and what information does each activity provide?

The third step in financial statement analysis is to assess the quality of the firm's financial statements. Which of the following is a question an analyst should ask when performing this step?

The higher the value added from any activity, the higher should be the ____________________ from engaging in that activity.

Extraordinary gains and losses arise from events that have all the following characteristics except :

Many people view the balance sheet as being a representation of a firm's economic position. What are some issues that reduce the quality of this representation?

____________________ assets include the rights established by law or contract to the future use of property.

Statements that express all items in a particular financial statement as a percentage of some common base are called _________________________ statements.

Why is the operating activities section of the statement of cash flows often believed to be the most important part of the statement?

The ______________________________ sets forth the sequence of activities involved in the creation, manufacture and distribution of its products and services.

______________________________ relates to the relative number of buyers and sellers in a particular industry.

Asset and Liability Valuation and Income Recognition

Income Flows Versus Cash Flows: Understanding the Statement of Cash Flows

Profitability Analysis

Risk Analysis

Financing Activities

Investing Activities

Operating Activities

Accounting Quality

Forecasting Financial Statements

Risk-Adjusted Expected Rates of Return and the Dividends Valuation Approach

Valuation: Cash-Flow Based Approaches

Valuation: Earnings-Based Approaches

Valuation: Market-Based Approaches

Filters