Questions from Financial Accounting

Q: Explain why a $50,000 increase in inventory during the

Explain why a $50,000 increase in inventory during the year must be included in computing cash flows from operating activities under both the direct and indirect methods.

Q: What is the general goal of trend analysis?

What is the general goal of trend analysis?

Q: Explain whether the following situations, taken independently, would be favorable

Explain whether the following situations, taken independently, would be favorable or unfavorable: (a) increase in gross profit percentage, (b) decrease in inventory turnover ratio, (c) increase in ear...

Q: What are the two essential characteristics of useful financial information? What

What are the two essential characteristics of useful financial information? What other characteristics enhance the usefulness of financial information?

Q: What is the primary objective of financial reporting?

What is the primary objective of financial reporting?

Q: What is the primary objective of financial reporting?

What is the primary objective of financial reporting?

Q: Val is opening a hair salon, but she does not know

Val is opening a hair salon, but she does not know what business form it should take. Tell her about the advantages and disadvantages of operating as a sole proprietorship versus a corporation. 

Q: What is the going-concern assumption? What is a goingconcern

What is the going-concern assumption? What is a goingconcern problem? What factors can contribute to such a problem?

Q: Explain where and how discontinued operations are reported on the income statement

Explain where and how discontinued operations are reported on the income statement.

Q: Tec gear is an electronics company in the United States. It

Tec gear is an electronics company in the United States. It uses the LIFO inventory method. You plan to compare its ratios to those of Euro text, but you are concerned because Euro text uses IFRS. Wha...