1 why should interested parties thoroughly review an

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1. Why should interested parties thoroughly review an organization's financial statements?

2. Why are financial statements usually presented with more than one year of data?

3. Assets are listed in order of liquidity. What does that mean?

4. What does accounts receivable, net mean?

5. For a for-profit corporation, what are the main categories of owners' equity?

6. For a not-for-profit organization, what are the three classes of owners' equity?

7. Why might the excess of revenues over expenses be of a particular interest to a financial statement user, rather than the increase in unrestricted net assets?

8. What does the statement of cash flows tell us that looking at the change in cash on the balance sheet does not?

9. Should each of the sections of the cash flow statement show an increase in cash for a healthy organization?

Reference no: EM13387489

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