Chapter 3, Problem 6DYS

MULTIPLE CHOICE. Choose the best answer among the following choices. 6. The financial statements should be stated in terms of a common financial denominator. A. Accrual B. Going Concern C. Time Period D. Stable Monetary Unit 7. The principle of objectivity includes the concept of A. Summarization B. Verifiability C. Classification D. Conservatism 8. The financial accounting information is directed toward the common needs of users and is independent of presumptions about particular needs and desires of specific users. A. Completeness B. Verifiability C. Relevance D. Neutrality 9. The attribute of relevance include ALL EXCEPT: A. Predictive value B. Feedback value C. Materiality D. Neutrality 10. The assumption that an entity will continue to operate for the foreseeable future is called A. Accrual basis B. Comparability C. Going concern D. Cash basis

What is the purpose of financial statement analysis? State four main analysis areas that would be completed on a financial statement. State the four standards for comparison in analysis. What are the three tools used to do analysis of financial statements?

Explain two (2) challenges when analyzing and interpreting the financial performance of different entities over a specified period of time.

You have learnt about qualitative characteristics of financial statements  in  your course, now you are required to write a report on the constraints and  trad  offs  between various qualitative characteristics of financial statement.

Which 2 of these datasets can be visualized using custom charts in the Performance Center? Accounts receivable Return on assets Inventory turnover Expenses Debt to Equity

PROBLEM Below is a list of the qualitative characteristics identified in FASB Statement of Financial Accounting Concepts No. 2. Following the list is a series of descriptive phrases. a. feedback value b. relevance c. decision usefulness d. reliability e. comparability f. predictive value g. varifiability h. consistency i. representational faithfulness j. timeliness k. neutrality _____ 1. When information can make a difference in a decision. _____ 2. Making information available when it is needed. _____ 3. When accounting policies and procedures are unchanged from period ro period. _____ 4. When information is verifiable and neutral. _____ 5. Occurs when the measurement results can be duplicated. _____ 6. The overall qualitative characteristics accounting information should possess. _____ 7. When information enables decision makers to confirm prior expectations. _____ 8. When accounting information is reported the same way by different companies.  Required: Match each characteristic…

Ratios are an input into which step in the financial statement analysis framework? a. Collect input data b. Process data  c. Analyze/interpret the processed data

Requirement: Prepare a Horizontal and Vertical Analysis for the Statement of Financial Position and Statement of Comprehensive Income.  Write it on any piece of paper in good form (report form). Please write your name at the top of each piece of paper.

A number of issues are faced in the area of financial reporting. Select four issues that you consider are the most important, justify your choice, describe the issue and offer suggestions as to how improvements could be made.