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

Comparative financial statements for Larson Company,prepared on December 31 are shown below: Required: Assume that one-third of sales are on credit and that cash dividends of $3,000 were declared and paid in 2012.Then,complete a percentage change income statement and a percentage change balance sheet for the company,using both amount and percentage changes from 2011 to 2012.

The accrual basis of accounting recognizes

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

Which of the following economic characteristics is consistent with a commercial bank?

Which SEC form may be the best place to start learning about the economics of an industry and the particular strategy a firm has selected for competing in the industry?

Identify Porters' Five Forces?

Cash and cash equivalents are considered ____________________ assets.

Normally,intense rivalries have a tendency to reduce ____________________.

A value chain for an industry sets forth

Which of the following economic characteristics is consistent with a pharmaceutical company?

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?

Resources that have the potential for providing a firm with future economic benefits are called ____________________.

___________________________________ financial statements are helpful in highlighting the relative magnitude of changes in financial statement data from year to year.

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

Which forces typically represent vertical competition in a value chain?

The tools for studying industry economics does not include

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?

Which of the following activities is an operating activity?

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

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?