Question 1

Net income is equal to:

Accepted Answer

A)  Assets minus Liabilities 
B)  Revenues and Gains minus Expenses and Losses 
C)  Shareholders' Equity minus Assets 
D)  Revenues and Assets minus Expenses and Liabilities 
A)  Assets minus Liabilities 
B)  Revenues and Gains minus Expenses and Losses 
C)  Shareholders' Equity minus Assets 
D)  Revenues and Assets minus Expenses and Liabilities

Question 2

The fourth step in financial statement analysis is using the financial statements to analyze the current ____________________,_______________ and ____________________ of the firm.

Accepted Answer

profitabil

Question 3

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 4

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?

Accepted Answer

A)  Form 8-K 
B)  Form 10-K 
C)  Form MD&A 
D)  Form FSAP 
A)  Form 8-K 
B)  Form 10-K 
C)  Form MD&A 
D)  Form FSAP

Question 5

Which financial statement would you look at to determine whether a company will be able to pay for the goods when payment is due in 30 days?

Accepted Answer

A)  Statement of cash flows. 
B)  Statement of stockholders' equity. 
C)  Income statement. 
D)  Balance sheet. 
A)  Statement of cash flows. 
B)  Statement of stockholders' equity. 
C)  Income statement. 
D)  Balance sheet.

Question 6

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?

Accepted Answer

The Management Assessment makes explicit

Question 7

On a common size basis,which of the following assets is normally largest for an electric utility?

Accepted Answer

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

Question 8

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 9

Most financial statement analysis aims to assess a firm's ____________________ and ____________________.

Accepted Answer

The answer of Most financial statement analysis aims to assess...

Question 10

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

Accepted Answer

The answer of ______________________________ relates to the relative number of...

Question 11

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

Accepted Answer

dividends

Question 12

The accrual basis of accounting recognizes:

Accepted Answer

A)  Revenue when cash is received from customers 
B)  Expenses when paid 
C)  Revenue when all or a substantial portion is performed 
D)  Revenue when contracts are signed 
A)  Revenue when cash is received from customers 
B)  Expenses when paid 
C)  Revenue when all or a substantial portion is performed 
D)  Revenue when contracts are signed

Question 13

The higher the value added from any activity,the higher should be the ____________________ from engaging in that activity.

Accepted Answer

The answer of The higher the value added from any...

Question 14

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

Net income is equal to:

The fourth step in financial statement analysis is using the financial statements to analyze the current ____________,_ and ______________ of the firm.

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

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?

Which financial statement would you look at to determine whether a company will be able to pay for the goods when payment is due in 30 days?

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?

On a common size basis,which of the following assets is normally largest for an electric utility?

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

Most financial statement analysis aims to assess a firm's and .

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

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

The accrual basis of accounting recognizes:

The higher the value added from any activity,the higher should be the ____________________ from engaging in that activity.

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

Asset and Liability Valuation and Income Recognition

Income Flows Versus Cash Flows: Understanding the Statement of Cash Flows

Profitability Analysis

Risk Analysis

Accounting Quality

Financing Activities

Investing Activities

Operating Activities

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

Net income is equal to:

The fourth step in financial statement analysis is using the financial statements to analyze the current ____________________,_______________ and ____________________ of the firm.

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

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?

Which financial statement would you look at to determine whether a company will be able to pay for the goods when payment is due in 30 days?

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?

On a common size basis,which of the following assets is normally largest for an electric utility?

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

Most financial statement analysis aims to assess a firm's ____________________ and ____________________.

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

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

The accrual basis of accounting recognizes:

The higher the value added from any activity,the higher should be the ____________________ from engaging in that activity.

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

Asset and Liability Valuation and Income Recognition

Income Flows Versus Cash Flows: Understanding the Statement of Cash Flows

Profitability Analysis

Risk Analysis

Accounting Quality

Financing Activities

Investing Activities

Operating Activities

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

The fourth step in financial statement analysis is using the financial statements to analyze the current ____________,_ and ______________ of the firm.

Most financial statement analysis aims to assess a firm's and .