$1.$ The tools of effective financial statement analysis are useful for assessing whether to extend $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ to a firm, either for a short$-$term or for a long$-$term.

$2.$ The Sec$1.$ The tools of effective financial statement analysis are useful for assessing whether to extend $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ to a firm, either for a short$-$term or for a long$-$term.

$2.$ The Second step in financial statement analysis requires businesses to analyzeond step in financial statement analysis requires businesses to analyze strategies that will $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ itself from the firms$$ competitors.

$3.$ Another important step in financial statement analysis is to assess the quality of a firm$$s $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ and if necessary adjust them for such characteristics as sustainability or comparability.

$4.$ The fourth step in financial statement analysis is using the financial statements to analyze the current $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ and $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ of the firm.

$5.$ 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$($n$)\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

$6.$ The $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ sets forth the sequence of activities involved in the creation, manufacture and distribution of its products and services.

$7.$ The higher the value added from any activity, the higher should be the $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ from engaging in that activity.

$8.$ Normally, intense rivalries have a tendency to reduce $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

$9.$ The threat of new entrants is measured by whether there are entry barriers, such as capital investment, $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,$ patents, or regulation that inhibit new entrants.

$10.$ The five economic attributes that are normally studied are demand, supply, manufacturing, $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,$ and investing and financing.

$11.$ Obtaining a competitive advantage by being the first company to introduce new concepts or ideas is referred to as $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

$12.$ Resources that have the potential for providing a firm with future economic benefits are called $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

$13.$ Cash and cash equivalents are considered $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ assets.

$14.\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ assets include the rights established by law or contract to the future use of property.

$15.$ Labor contracts and purchase order commitments are examples of $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ contracts.

$16.$ The main components that make up the stockholder$$s equity section of the balance sheet are $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ and $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

$17.$ 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.

$18.\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ equals net income for a period plus or minus the changes in shareholders$$ equity accounts other than from net income and transactions with owners.

$19.$ Statements that express all items in a particular financial statement as a percentage of some common base are called $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ statements.

$20.$ Depreciation is a$($n$)\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ added back to net income when preparing the operating activities section of the Statement of Cash Flows.

$21.$ The $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ defines more clearly the explicit responsibility of managers for financial statements, the relation between the independent auditor and the firm audited and the kinds of services permitted and not permitted.

$22.$ Under the Sarbanes$-$Oxley Act $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ assumes responsibility for establishing and maintaining adequate internal control structure and procedures.

$23.$ Most financial statement analysis aims to assess a firm$$s $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ and $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

$24.\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ financial statements are helpful in highlighting the relative magnitude of changes in financial statement data from year to year.

$25.$ Basic EPS is calculated as net income minus $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ divided by the weighted average number of shares outstanding.

$26.$ The prospectus must be filed with the $\_\_\_\_\_\_\_\_$ before the company can sell new issues of stocks or bonds.

$27.\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ relates to the relative number of buyers and sellers in a particular industry.

$28.$ How easily can new firms enter a market is a question one might ask when assessing $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

$29.$ How easily can customers switch to substitute products is a question one might ask when assessing the $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

$30.$ Nonmonetary assets include assets that are $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,$ such as inventories, and assets that are $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ such as brand names.