Question 1

What is an industry's value chain?

Accepted Answer

An industry's value chain is t

Question 2

Which of the following is an independent entity comprising 15 members and a full-time professional staff that specifies acceptable accounting principles known as IFRS?

Accepted Answer

A)  FASB 
B)  IASB 
C)  SEC 
D)  GAAP 
A)  FASB 
B)  IASB 
C)  SEC 
D)  GAAP

Question 3

Which two organizations are working together to harmonize financial reporting worldwide?

Accepted Answer

A)  FASB and IASB 
B)  GAAP and FASB 
C)  SEC and FASB 
D)  EU and SEC 
A)  FASB and IASB 
B)  GAAP and FASB 
C)  SEC and FASB 
D)  EU and SEC

Question 4

The second step in financial statement analysis is to identify the company strategy. Which of the following is a question an analyst should ask when performing a strategy analysis?

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 5

Depreciation is a(n) ___________________ added back to net income when preparing the operating activities section of the Statement of Cash Flows.

Accepted Answer

Non-cash e

Question 6

Which of the following is not an expense of a business?

Accepted Answer

A)  Depreciation 
B)  Dividends 
C)  Salaries 
D)  Advertising 
A)  Depreciation 
B)  Dividends 
C)  Salaries 
D)  Advertising

Question 7

Another important step in financial statement analysis is to assess the quality of a firm's _____________________________ and if necessary adjust them for such characteristics as sustainability or comparability.

Accepted Answer

financial

Question 8

The two categories of shareholders' equity usually found on the balance sheet of a corporation are:

Accepted Answer

A)  Contributed capital and property, plant, and equipment. 
B)  Retained earnings and notes payable. 
C)  Common stock and retained earnings. 
D)  Contributed capital and equity securities. 
A)  Contributed capital and property, plant, and equipment. 
B)  Retained earnings and notes payable. 
C)  Common stock and retained earnings. 
D)  Contributed capital and equity securities.

Question 9

Which of the following economic characteristics is consistent with a grocery store chain?

Accepted Answer

A)  Minimal competition 
B)  Extensive competition 
C)  High net income to sales 
D)  Differentiated product 
A)  Minimal competition 
B)  Extensive competition 
C)  High net income to sales 
D)  Differentiated product

Question 10

The five economic attributes that are normally studied are demand, supply, manufacturing, ____________________, and investing and financing.

Accepted Answer

The answer of The five economic attributes that are normally...

Question 11

Accounts payable represent:

Accepted Answer

A)  Amounts which are due to stockholders. 
B)  Amounts which have been borrowed to finance operations. 
C)  Amounts which are owed to the company by its customers resulting from credit sales. 
D)  Amounts which are owed by the company to its suppliers for past purchases. 
A)  Amounts which are due to stockholders. 
B)  Amounts which have been borrowed to finance operations. 
C)  Amounts which are owed to the company by its customers resulting from credit sales. 
D)  Amounts which are owed by the company to its suppliers for past purchases.

Question 12

On a common size basis, which of the following assets is normally largest for a commercial bank?

Accepted Answer

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

Question 13

The cash basis method of accounting can be best described as:

Accepted Answer

A)  The recording of transactions and adjustments so that debits equal credits. 
B)  The method that equates assets with liabilities and owners' equity. 
C)  The method that recognizes revenue when money is received and expenses when money is paid. 
D)  The method that matches incurred expenses with related revenues when they are earned. 
A)  The recording of transactions and adjustments so that debits equal credits. 
B)  The method that equates assets with liabilities and owners' equity. 
C)  The method that recognizes revenue when money is received and expenses when money is paid. 
D)  The method that matches incurred expenses with related revenues when they are earned.

Question 14

The primary purpose of the balance sheet is to:

Accepted Answer

A)  Report the current value of the business. 
B)  Measure the net income of a business up to a particular point in time. 
C)  Report the difference between cash inflows and cash outflows for the period. 
D)  Report the financial position of the reporting entity at a particular point in time. 
A)  Report the current value of the business. 
B)  Measure the net income of a business up to a particular point in time. 
C)  Report the difference between cash inflows and cash outflows for the period. 
D)  Report the financial position of the reporting entity at a particular point in time.

Question 15

Cash and cash equivalents are considered ____________________ assets.

Accepted Answer

The answer of Cash and cash equivalents are considered ____________________...

Question 16

Opinions on the effectiveness of the internal control system and the fairness of the amounts reported in the financial statements are known as:

Accepted Answer

A)  Management Discussion and Analysis. 
B)  Assurance Opinions. 
C)  Notes to the Financial Statements 
D)  Management Assessments. 
A)  Management Discussion and Analysis. 
B)  Assurance Opinions. 
C)  Notes to the Financial Statements 
D)  Management Assessments.

Question 17

The threat of new entrants is measured by whether there are entry barriers, such as capital investment, ________________________________________, patents, or regulation that inhibit new entrants.

Accepted Answer

technologi

Question 18

When a firm attempting to create unique products or services for particular market niches, in order to achieve relatively high profit margins, this is best known as:

Accepted Answer

A)  A quality strategy 
B)  A low-cost leadership strategy 
C)  A vertical integration strategy 
D)  A product differentiation strategy 
A)  A quality strategy 
B)  A low-cost leadership strategy 
C)  A vertical integration strategy 
D)  A product differentiation strategy

Question 19

Basic EPS is calculated as net income minus _____________________________________________ divided by the weighted average number of shares outstanding.

Accepted Answer

dividends

Question 20

Which of the following would not inhibit new entrants into a market?

Accepted Answer

A)  Existing technological expertise. 
B)  Large required capital investment. 
C)  Lack of rivalry among current participants. 
D)  Existing patented technology. 
A)  Existing technological expertise. 
B)  Large required capital investment. 
C)  Lack of rivalry among current participants. 
D)  Existing patented technology.

What is an industry's value chain?

Which of the following is an independent entity comprising 15 members and a full-time professional staff that specifies acceptable accounting principles known as IFRS?

Which two organizations are working together to harmonize financial reporting worldwide?

The second step in financial statement analysis is to identify the company strategy. Which of the following is a question an analyst should ask when performing a strategy analysis?

Depreciation is a(n) ___________________ added back to net income when preparing the operating activities section of the Statement of Cash Flows.

Which of the following is not an expense of a business?

Another important step in financial statement analysis is to assess the quality of a firm's _____________________________ and if necessary adjust them for such characteristics as sustainability or comparability.

The two categories of shareholders' equity usually found on the balance sheet of a corporation are:

Which of the following economic characteristics is consistent with a grocery store chain?

The five economic attributes that are normally studied are demand, supply, manufacturing, ____________________, and investing and financing.

Accounts payable represent:

On a common size basis, which of the following assets is normally largest for a commercial bank?

The cash basis method of accounting can be best described as:

The primary purpose of the balance sheet is to:

Cash and cash equivalents are considered ____________________ assets.

Opinions on the effectiveness of the internal control system and the fairness of the amounts reported in the financial statements are known as:

The threat of new entrants is measured by whether there are entry barriers, such as capital investment, ________________________________________, patents, or regulation that inhibit new entrants.

When a firm attempting to create unique products or services for particular market niches, in order to achieve relatively high profit margins, this is best known as:

Basic EPS is calculated as net income minus _____________________________________________ divided by the weighted average number of shares outstanding.

Which of the following would not inhibit new entrants into a market?

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

What is an industry's value chain?

Which of the following is an independent entity comprising 15 members and a full-time professional staff that specifies acceptable accounting principles known as IFRS?

Which two organizations are working together to harmonize financial reporting worldwide?

The second step in financial statement analysis is to identify the company strategy. Which of the following is a question an analyst should ask when performing a strategy analysis?

Depreciation is a(n) ___________________ added back to net income when preparing the operating activities section of the Statement of Cash Flows.

Which of the following is not an expense of a business?

Another important step in financial statement analysis is to assess the quality of a firm's _____________________________ and if necessary adjust them for such characteristics as sustainability or comparability.

The two categories of shareholders' equity usually found on the balance sheet of a corporation are:

Which of the following economic characteristics is consistent with a grocery store chain?

The five economic attributes that are normally studied are demand, supply, manufacturing, ____________________, and investing and financing.

Accounts payable represent:

On a common size basis, which of the following assets is normally largest for a commercial bank?

The cash basis method of accounting can be best described as:

The primary purpose of the balance sheet is to:

Cash and cash equivalents are considered ____________________ assets.

Opinions on the effectiveness of the internal control system and the fairness of the amounts reported in the financial statements are known as:

The threat of new entrants is measured by whether there are entry barriers, such as capital investment, ________________________________________, patents, or regulation that inhibit new entrants.

When a firm attempting to create unique products or services for particular market niches, in order to achieve relatively high profit margins, this is best known as:

Basic EPS is calculated as net income minus _____________________________________________ divided by the weighted average number of shares outstanding.

Which of the following would not inhibit new entrants into a market?

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