a. How does information from the balance sheet help users of the financial statements?
b. How does information from the balance sheet help users of the financial statements?
c. What are the major limitations of the balance sheet as a source of information?
d. Discuss at least two items that are important to the value of
companies like Intel or IBM but
that are not recorded in their balance sheets. What are some
reasons why these items are not recorded in the balance
sheet?
a. How does information from the balance sheet help users of the financial statements? b. How...
1. How does information from the balance sheet help users of the financial statements? 2. What is meant by solvency? What information in the balance sheet can be used to assess a company’s solvency?
Identify two (2) pieces of information not included in the principle financial statements (balance sheet, income statements, financial ratios) and legal actions being taken against the company, that you think would be important to someone considering whether to invest in your company. Explain your reasons for believing that this information would be important in making an investment decision.
"The Importance of Financial Statements" Public companies are required to publish annual financial statements. Suggest the major benefits of companies making financial statement information available to employees. As an employee, discuss what financial information would be of value to you. Provide at least two (2) specific examples on why the information is important. Briefly explain generally accepted accounting principles (GAAP), and describe why it is important that public companies follow GAAP when preparing financial statements. Also, give your opinion on...
The purpose of financial statements is to communicate information to help users make decisions. True or False True False
Briefly explain in your own words the following: What does a balance sheet convey to readers? What makes a balance sheet useful? What are the limitations of a GAAP balance sheet? What role do disclosures play in communicating information to financial report readers? What extra disclosure requirements are there for SEC-registered entities? What is an audit? Who performs them? Why benefits from them? Who pays for them? What is in a typical audit report? What role do financial analysts play...
How does the accounting system expressed in the balance sheet, income statement, and statement of cash flows contribute to the education of investors and other users of these financial statements?
What information does the Income Statement provide and how does it benefit? What information does the “Balance Sheet” provide and why is it useful? What information does the “Statement of Cash Flows” provide and why is it important? What information does the “Statement of Retained Earnings” provide? What financial statement, as studied, provides better information to investors? Explain. What financial statement, as studied, provides better information to creditors? Explain. Explain what each of the following classifications of financial reasons consist...
The AICPA Special Committee on Financial Reporting proposed the following constraints related to financial reporting. 1. Business reporting should exclude information outside of management’s expertise or for which management is not the best source, such as information about competitors. 2. Management should not be required to report information that would significantly harm the company’s competitive position. 3. Management should not be required to provide forecasted financial statements. Rather, management should provide information that helps users forecast for themselves the company’s...
The AICPA Special Committee on Financial Reporting proposed the following constraints related to financial reporting. 1. Business reporting should exclude information outside of management’s expertise or for which management is not the best source, such as information about competitors. 2. Management should not be required to report information that would significantly harm the company’s competitive position. 3. Management should not be required to provide forecasted financial statements. Rather, management should provide information that helps users forecast for themselves the company’s...
1. What information should an investor be able to find within the financial statements and why is is important that they be reviewed by a third party? 2. Firms speak of the use of Generally Accepted Accounting Principles (GAAP). Why is this approach important and who assures that it is followed? (There are several parties involved) 3. What is accrual accounting and how does it differ from cash based accounting? 4. What information does the balance sheet contain as compared...