1. The accrual Basis of accounting recognizes

Revenue when all or substantial portion of the promised service is performed
Pg. 29

2. Current assets are defined as

Cash and other assets that the firm expects to sell or consume during the normal operating cycle of a business, usually one year
Pg. 19

3. Which of the following is not an expense of a business

Dividends
Pg. 27

4. All of the following are the building blocks for financial statement analysis except: (economics, strategy, financial statements)

Recommending growth opportunities to management that will diversify risks from exchange rates and political uncertainty in the future

5. The accounting equation is represented by Assets = Liabilities + Stockholders' Equity. Which of the following would cause a change in the stockholders' equity accounts:

Purchase of common stock back from shareholders
Pg. 129

6. A company in the growth phase of its product life cycle will normally have the following pattern of cash flows

Negative or positive cash flows from operations, negative cash flows from investing and positive cash flows from financing
Pg. 152

7. Which of the following is a cash flow from operating activities?

Purchase of inventory merchandise for resale
Pg. 186

8. Refer to the information for Orca Industries. The return on common shareholders' equity for Orca Industries is

11.9%
Net Income / Equity = 2,000 / 16,800 = 11.9%
16800= (common stock + retained earnings)
Pg. 261

9. Refer to the information for Orca Industries. Orca's basic earnings per share is

.22
Net Income / Shares = 2,000 / 9,000 = .22
Pg.244

10. Return on common equity can be disaggregated into profit margin for ROCE, capital structure leverage and _______________

Total Assets Turnover