United States Auto Industry
Are CEOs and key corporate executives worth the large pay packages they receive? Explain.
CEOs provide a level of talent that is required to produce the desired product or the successful
performance of a company. The skills and
The Importance of the Cash Flow Statement
I agree with this article on how the cash flow statement is very important, but we can not neglect
the balance sheet and the income or profit and loss statement. The profit and loss statement
summarizes the revenu
Does this change your opinion on which one you think is best or not? Which method do you think is
easier for investors to understand?
As this article states, the direct method calculates the cash associated with operating activities, inflows
P24-2. (Segmented Reporting)
Cineplex Corporation is a diversified company that operates in five different industries:
A, B, C, D, and E. The following information relating to each segment is available for
What effect do interest rates have on the calculation of future and present value? How does the length
of time affect future and present value? How do these two factors correlate?
According to our readings, there are four fundamental time value variables
When might we use present value calculations? When might we use future value calculations? Which is
more likely to be used in accounting? Why?
Present value is the current value of a future sum of money or cash flow that is given to a specific return
What is the time value of money (TVM)? Why is this concept important in accounting? Under what
circumstances might we use TVM calculations?
According to our readings, the phrase Time Value of Money is used with finances in accounting and it
shows a relati
Good Question Dawn! As we know, the prime rate is the interest rate that a commercial bank is able to
change its best customers. The best customers are those who have large organizations with stable
credit so they project a minimal risk to the bank. Small
The National Association of State Boards of Accounting, or NASBA, provides those interested in pursuing
there CPA plenty of information on how to do it, where to do it and direction to what is needed for
whatever state of are living in. According to these
The American Institute of Certified Public Accountants, or AICPA, is a non-profit professional organization
that groups together the certified public accountants in the United States. The members of this
organization represent the professionals of various
I completely agree with the idea of saving as young as possible! Even though it can be difficult to do at
times do to expenses and the unexpected expenses that take a bite out of your savings! This article
emphasizes the importance of compound interest. C
Excel is widely used in our field because of how convenient this spreadsheet program is to program in
formulas. I agree with this article on how we should consider testing members in accounting field on
their critical thinking skills, problem solving skil
Problem23-8 (SCF -Direct and Indirect Methods)
*Comparative balance sheet accounts of Sharpe Company are presented below.
Comparative Balance Sheet Accounts
As of December 31
Ratios can be easier to understand than numbers. Ratios can simplify financial statements as well as
highlighting important information and presenting it in a more simple form. When looking at ratios, you
can just get the data you need by looking at a few
Week One: Chapter 2- Key Terms
account A systematic arrangement that shows the effect of transactions and other events on a specific element (asset, liability, and so on).
Companies keep a separate account for each asset, liability, revenue, and expense,
Week One: Chapter Three Key Terms
Accounting Principles Board (APB) Private standard-setting organization from 1959 to 1973, whose mission was to develop an overall
conceptual framework. Its official pronouncements, called APB Opinions, were to be based m
Free Cash Flow: Free, But Not Always Easy
This is a very interesting article! A company that always brings in free cash flow signals the ability a
company has to be able to pay their debts, buy stock as well as pursue growth in their business. These
What are the differences between the direct and indirect method of presenting a statement of cash
flows? Which method of presenting a statement of cash flows is the best? Why?
As we have learned, the statement of cash flows contains three sections for the
What is included in each section of the statement of cash flows? What does each section tell you about a
According to our readings, classifies cash receipts as well as cash payments by their operating, investing
and financing activities. The oper
What is the purpose of generally accepted accounting principles (GAAP) and the accounting cycle? Is it
possible to deviate from GAAP and the accounting cycle and still prepare financial statements? Why?
What are some possible consequences of this course o
It is understandable why this must be public knowledge for publically held companies but do you think
non-public companies should post their financials at least on their website or not at all? There are quite
a few large non-public companies now. For exam
Here is the list of the top private companies in the US:
I think everyone can recognize these names.
Does this list change your mind? Why or why not?
What organizations are responsible for governing financial reporting? What is the role of each
organization? How have the roles changed in the last 20 years? How might their roles change in the next
The three organizations that are responsible f
Distinguish between cash-basis accounting and accrual basis accounting. Why is accrual-basis accounting
acceptable for most business enterprises and the cash-basis unacceptable in the preparation of an
income statement and a balance sheet?
What is included in other comprehensive income? Why are items included in other comprehensive
income, but not included in net income? Should these items be included in net income or not included
at all? Explain your answer.
Comprehensive income can be def
What are different criteria for recognizing revenue? Why are there so many revenue recognition
methods? Why are the methods subjective, and what are the implications on income statement quality?
According to our readings, the revenue recognition principle
What are the differences between regular and irregular items on an income statement? What are the
requirements for items to qualify as irregular? What are some examples of irregular items? What is the
effect of irregular items on an investor's analysis of
Percentage of Completion method is a common form of revenue recognition.
.What are ways to regulate these potential issues so investors can feel more comfortable with the
Upon reading about the percentage completion method, it involves
CA1-14. (Securities and Exchange Commission)
The U.S. Securities and Exchange Commission (SEC) was created in 1934 and
consists of five commissioners and a large professional staff. The SEC professional
staff is organized into five divisions and several p