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? The primary purpose of the balance sheet is to

1. 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?

Form 10-K

2. The primary purpose of the balance sheet is to

report the financial position of the reporting entity at a particular point in time.

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

Income statement.

4. The cash basis method of accounting can be best described as

The method that recognizes revenue when money is received and expenses
when money is paid

5. Financial reporting requires that firms recognize product financing arrangements as liabilities
   if which of the following conditions is met?

The arrangement requires the sponsoring firm to purchase the inventory,
substantially
identical inventory, or processed goods of which the inventory is a component at
specified prices.

The payments made to the other entity cover all acquisition, holding, and financing
costs.

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

Do earnings include nonrecurring gains or losses?

7. Time-series analysis helps answer all of the following questions except:
   
   a. Is the firm becoming more or less profitable over time?
   
   b. Is the firm becoming more or less risky?
   
   c. How is management of the firm responding to external economic forces?
   
   d. What is the amount of assets or capital required to generate a particular level
   of earnings?

What is the amount of assets or capital required to generate a particular level
of earnings?

8. Why is the operating activities section of the statement of cash flows often believed to be the
   most important part of the statement?

Because it indicates a company's ability to generate cash from sales to meet
current cash payments for goods or services

9. Indicate where it should appear on the statement of cash flows:
   
   Cash received from issuing debt

Financing activity - Cash Inflow

10. Indicate where it should appear on the statement of cash flows:
    
    Cash used to purchase property

Investing activity - Cash outflow