Question 1

Assets that do not represent a claim to a fixed amount of cash are called ____________________ assets.

Accepted Answer

nonmonetary

Question 2

What is comprehensive income?

Accepted Answer

Comprehensive income equals net income for a period plus or minus the changes in shareholders' equity accounts other than from net income and transactions with owners. Items affecting comprehensive income include foreign currency translation adjustments, cash flow hedge accounting, minimum pension liability adjustments and unrealized gains and losses from holding investment securities classified as available for sale.

Question 3

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? B

Question 4

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

Accepted Answer

The answer of What are three activities reported in the...

Question 5

The first step in financial statement analysis is to identify the __________________________________________________ of the industry in which a firm participates.

Accepted Answer

economic c

Question 6

Which of the following is a question an analyst would ask when assessing the quality of a firm's financial statements?

Accepted Answer

A)  Are the company's products designed to meet a specific market segment? 
B)  Has the firm integrated forward into retailing to final consumers? 
C)  Is the firm diversified across several geographical markets? 
D)  Do earnings include nonrecurring gains or losses? 
A)  Are the company's products designed to meet a specific market segment? 
B)  Has the firm integrated forward into retailing to final consumers? 
C)  Is the firm diversified across several geographical markets? 
D)  Do earnings include nonrecurring gains or losses?

Question 7

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

Accepted Answer

A)  operating 
B)  investing 
C)  manufacturing 
D)  financing 
A)  operating 
B)  investing 
C)  manufacturing 
D)  financing

Question 8

An example of an intangible asset is

Accepted Answer

A)  a patent 
B)  land 
C)  investment in another company 
D)  raw material inventory 
A)  a patent 
B)  land 
C)  investment in another company 
D)  raw material inventory

Question 9

When identifying the strategies that a particular firm pursues to gain a competitive advantage it is important to determine if its products are designed to meet the needs of a specific market segment or are they intended for a _____________________________________________.

Accepted Answer

broader co

Question 10

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

Accepted Answer

The answer of Resources that have the potential for providing...

Question 11

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 12

Which of the following assets would appear on the balance sheet at an amount greatly below its fair market value?

Accepted Answer

A)  inventory 
B)  marketable securities 
C)  equipment 
D)  brand name 
A)  inventory 
B)  marketable securities 
C)  equipment 
D)  brand name

Question 13

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

Accepted Answer

dividends

Question 14

____________________ 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 15

What is the rationale for the statement of cash flows?

Accepted Answer

The statement of cash flows provides inf

Question 16

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 17

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 18

Prepare an analysis of the automobile manufacturing industry using Porter's five forces framework. For each component force provide support for your conclusion. In addition, at the completion of your analysis provide a conclusion, along with support, of whether you expect the automobile industry to report high or low profitability in the near future.

Accepted Answer

Buyer Power--HIGH--It appears that consu

Question 19

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

Accepted Answer

first move

Question 20

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

Accepted Answer

The answer of When assessing the threat of new entrants...

Assets that do not represent a claim to a fixed amount of cash are called ____________________ assets.

What is comprehensive income?

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?

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

The first step in financial statement analysis is to identify the __________________________________________________ of the industry in which a firm participates.

Which of the following is a question an analyst would ask when assessing the quality of a firm's financial statements?

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

An example of an intangible asset is

When identifying the strategies that a particular firm pursues to gain a competitive advantage it is important to determine if its products are designed to meet the needs of a specific market segment or are they intended for a _____________________________________________.

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

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

Which of the following assets would appear on the balance sheet at an amount greatly below its fair market value?

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

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

What is the rationale for the statement of cash flows?

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

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?

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

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

Asset and Liability Valuation and Income Measurement

Income Flows Versus Cash Flows: Key Relationships in the Dynamics of a Business

Profitability Analysis

Risk Analysis

Quality of Accounting Information and Adjustments to Reported Financial Statement Data

Revenue Recognition and Related Expenses

Liability Recognition and Related Expenses

Intercorporate Entities

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

Assets that do not represent a claim to a fixed amount of cash are called ____________________ assets.

What is comprehensive income?

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?

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

The first step in financial statement analysis is to identify the __________________________________________________ of the industry in which a firm participates.

Which of the following is a question an analyst would ask when assessing the quality of a firm's financial statements?

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

An example of an intangible asset is

When identifying the strategies that a particular firm pursues to gain a competitive advantage it is important to determine if its products are designed to meet the needs of a specific market segment or are they intended for a _____________________________________________.

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

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

Which of the following assets would appear on the balance sheet at an amount greatly below its fair market value?

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

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

What is the rationale for the statement of cash flows?

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

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?

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

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

Asset and Liability Valuation and Income Measurement

Income Flows Versus Cash Flows: Key Relationships in the Dynamics of a Business

Profitability Analysis

Risk Analysis

Quality of Accounting Information and Adjustments to Reported Financial Statement Data

Revenue Recognition and Related Expenses

Liability Recognition and Related Expenses

Intercorporate Entities

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