Questions from General Accounting

Q: Comment on the following statement. “The residual income model is

Comment on the following statement. “The residual income model is no different from the dividend discount model. Therefore, it has no value to investors and analysts.”

Q: If uniformity means eliminating alternative accounting treatments, then surely comparability of

If uniformity means eliminating alternative accounting treatments, then surely comparability of financial statements of different enterprises would be improved. Do you agree with this statement? Comme...

Q: Is the choice of LIFO a relevant circumstance compared to FIFO?

Is the choice of LIFO a relevant circumstance compared to FIFO?

Q: Should firm’s capitalize research and development expenditures? Why or why not

Should firm’s capitalize research and development expenditures? Why or why not?

Q: SFAC No. 6 defines circumstances as follows: Circumstances are

SFAC No. 6 defines circumstances as follows: Circumstances are a condition or set of conditions that develop from an event or series of events, which may occur almost imperceptibly and may converge in...

Q: SFAS No. 13 in effect regards a lease period of 75

SFAS No. 13 in effect regards a lease period of 75 percent or more as a relevant circumstance in distinguishing between capital and operating leases. What economic factors (cash flow differentials) li...

Q: An argument against additional disclosure is that financial analysts aggressively seek this

An argument against additional disclosure is that financial analysts aggressively seek this information, which is then sold to their customers, resulting in an adequate market solution to the problem...

Q: What are the possible benefits of a disclosure process that is integrated

What are the possible benefits of a disclosure process that is integrated with major policies in marketing, production, and finance? Do you think only “good news” items should be disclosed?

Q: What is meant by “information content” and how does capital

What is meant by “information content” and how does capital market research determine the information content of accounting numbers?

Q: Do you think management policies should be acceptable as potential relevant circumstances

Do you think management policies should be acceptable as potential relevant circumstances? Why or why not?