1.
List four basic financial statements.
2.
Compute the amount for
3.
Compute total revenue of CVS for the year ended December 31, 2010.
4.
Identify whether CVS is profitable in the year ended December 31, 2011. Compute net income and find whether it increase or decrease for the year ended December 31, 2010.
5.
Identify whether company’s cash and cash equivalents increased from December 31, 2010 to
December 31, 2011, in case of yes indicate the amount. List the two places in the statements that the number is found and evaluated.
6.
Indicate whether cash flow from all three activities increase or decrease from the year 2010 to 2011.
7.
Identify the auditor of the company and give reason for the importance of the auditor’s report that is accompanied by the financial statement.
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Principles of Accounting
- The standards, procedures, and principles companies must follow when preparing their financial statements are known as which of the following? A. Financial Accounting Standards Board (FASB) B. generally accepted accounting principles (GAAP) C. Securities and Exchange Commission (SEC) D. conceptual frameworkarrow_forwardManagement Discussion and Analysis is required in annual reports filed with the Securities and Exchange Commission. It includes management's analysis of current operations and its plans for the future. Typical items included in the MD&A are as follows: Management's analysis and explanations of any significant changes between the current and prior years' financial statements.Important accounting principles or policies that could affect interpretation of the financial statements, including the effect of changes in accounting principles or the adoption of new accounting principles.Management's assessment of the company's liquidity and the availability of capital to the company.Significant risk exposures that might affect the company.Any “off-balance-sheet” arrangements such as leases not included directly in the financial statements. Such arrangements are discussed in advanced accounting courses and textbooks.Using Google, enter Kroger Annual Report in the search field. Access the…arrow_forwardWhich of the following does not accurately describe a requirement that a company must fulfill when adopting IFRS for the first time?a. The company must prepare an opening IFRS balance sheet at the beginning of the year for which the company is preparing its first set of IFRS financial statements.b. At the IFRS transition date, the company must select IFRS accounting policies based on those that will be in effect for the accounting period that will be covered by the first set of IFRS financial statements.c. At the IFRS transition date, the company must derecognize assets and liabilities that were recognized under previous GAAP that are not allowed to be recognized under IFRS.d. The company must provide a reconciliation of net income and stockholders’ equity under previous GAAP to net income and stockholders’ equity under IFRS in its first set of IFRS financial statements.arrow_forward
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