Easton ( Chapters 1-7 included)
Financial Statement Analysis - (answer)Process of evaluating a company's financial statements to assess
its profitability, growth, and risk.
Economics - (answer)Study of how individuals, businesses, and societies allocate resources.
Strategy - (answer)Plan of action designed to achieve a long-term or overall aim.
Financial Statements - (answer)Reports showing a company's financial performance and position.
Accounting System - (answer)Structure that records, processes, and reports financial transactions.
Analysts & Investors - (answer)Individuals who study financial statements to understand a company's
performance and risk.
Accounting Fundamentals - (answer)Basic principles and concepts that underlie accounting practices.
Value Firm - (answer)Process of determining the worth of a company, often using share value estimates.
Porter's Five Forces Model - (answer)Framework for analyzing competition in an industry based on five
key factors.
Value Chain Analysis - (answer)Evaluation of a company's activities involved in creating and distributing
products.
Common Size FS - (answer)Tool for comparing financial statements by expressing all items as
percentages of a common base.
Percentage Change FS - (answer)Analysis method that highlights the relative growth rates in financial
statement amounts over time.
, Market Efficiency - (answer)Degree to which stock prices reflect all available information.
Forecasting Plan - (answer)Process of estimating future revenues, expenses, assets, and liabilities for
financial planning.
Low-Cost Leadership Strategy - (answer)Business approach offering products at low prices to gain market
share.
Product Differentiation Strategy - (answer)Strategy to distinguish products/services from competitors
through unique features or quality.
Accounting Quality - (answer)Level of accuracy and reliability in financial information for decision-
making.
Real Earnings Management - (answer)Manipulation of financial results to achieve desired outcomes.
Incentive for Upward Earnings Management - (answer)Motivation for increasing reported income
through strategic decisions.
Incentive for Managing Earnings Downward - (answer)Reasons for reducing reported income through
specific actions.
Accrual Accounting - (answer)Method of accounting that recognizes economic events regardless of when
cash transactions occur.
Inventory Method Choice - (answer)Decision on how to value and account for inventory in financial
statements.
Change in Accounting Principles - (answer)Adjustment in accounting methods that impact financial
reporting.