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

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:

Cash and cash equivalents are considered ____________________ assets.

What is comprehensive income?

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?

What is the rationale for the statement of cash flows?

What three financial statements are prepared by business firms and what information does each provide?

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

Nonmonetary assets include assets that are ____________________,such as inventories,and assets that are ____________________ such as brand names.

The main components that make up the stockholder's equity section of the balance sheet are _________________ and ___________________.

During 2014,Waggoner Company performed services for which customers paid or promised to pay $587,000.Of this amount,$552,000 had been collected by year end.Waggoner paid $340,000 in cash for employee wages and owed the employees $15,000 at the end of the year for work that had been done but had not paid for.Waggoner paid interest expense of $3,000 and $195,000 for other service expenses.The income tax rate was 35%,and income taxes had not yet been paid at the end of the year.Waggoner declared and paid dividends of $20,000.There were no other events that affected cash. Required: 1.What was the amount of the increase or decrease in cash during the year? 2.Prepare an income statement for Waggoner for the year (December 31 year-end). 3.Prepare a statement of cash flows for the year (December 31 year-end)

Assets for a particular business might include: 

Under the ____________________ basis of accounting,a firm recognizes revenue when it performs all or a substantial portion,of the services it expects to perform and receives either cash or a receivable.

Net income is equal to:

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

Normally,intense rivalries have a tendency to reduce ____________________.

Current assets are defined as:

Which of the following activities is an operating activity?

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

All of the following are principal provisions of the Sarbanes-Oxley Act of 2002 except:

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