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

Obtaining a competitive advantage by being the first company to introduce new concepts or ideas is referred to as ________________________________________.

Which of the following is not one of Porter's five forces?

When assessing the threat of new entrants what questions might an analyst ask about an industry?

The tools of effective financial statement analysis are also useful for assessing whether to extend ____________________ to a firm,either for a short-term or for a long-term.

Which form does the balance sheet equation take in the United Kingdom?

Which of the following is not an activity reported in the cash flows financial statement?

Nickel Industries reported the following amounts on its balance sheet on December 31,2011: Required: 1.What is the amount of Nickel's total assets at the end of 2011? 2.Identify the items listed above that are liabilities. 3.What is the amount of Nickel's retained earnings at the end of 2011? 4.Prepare a balance sheet for Nickel Industries using U.S.GAAP as of December 31,2011. 5.Nickel Industries wishes to purchase merchandise from your company on account.The amount of the purchases would probably be about $11,000 per month,and the terms would require Nickel to make payment in full within 30 days.Would you recommend that your company grant credit to Nickel under these terms? Explain the reasoning for your response.

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

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?

What is the rationale for the statement of cash flows?

What are the six interconnected activities related to financial statement analysis?

The _____________________________________________ defines more clearly the explicit responsibility of managers for financial statements,the relation between the independent auditor and the firm audited and the kinds of services permitted and not permitted.

On the statement of cash flows,an amount paid for utilities would be classified as

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

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?

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

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

Which of these is not an intangible asset?

Current assets are defined as