Accounting standards are very complex and require expertise

Assignment Help Financial Management

Reference no: EM131023110

Max Points: 5.0 Accounting standards are very complex and require expertise in their interpretation and application. Smaller companies often do not have the resources available to obtain this expertise, leading to the concept of "big GAAP" and "little GAAP," whereby there would be two sets of standards: one for large, publicly traded companies and another for smaller companies. Should there be two sets of accounting standards? Why or why not?

Reference no: EM131023110

Questions Cloud

A franchise exists when the owner of a copyright licenses : In raising capital, a sole proprietor is limited to his or her personal funds¾a personal loan is not possible.A. True, B. False

Decide how many pipe rolling machines to purchase : Managers at Midnight Manufacturing must decide how many pipe rolling machines to purchase. Each machine can process 100 pipes per hour. One machine will result in a fixed cost of $2,100 per hour, while two machines will result in a fixed cost of $3,7..

Competitors in the discount drug chain store business : Lenows Drug stores and Halls Pharmaceyticals are competitors in the discount drug chain store business. Complete the following given earnings before interest and taxes of 20,000,30,000 and 120,000. Assume the tax rate is 30%. Leave nothing blank but ..

Marie performs personal services for the corporation : Marie performs personal services for the corporation with a fair market value of $193,200 in exchange for 400 shares of stock.

Accounting standards are very complex and require expertise : Max Points: 5.0 Accounting standards are very complex and require expertise in their interpretation and application. Smaller companies often do not have the resources available to obtain this expertise, leading to the concept of "big GAAP" and "littl..

Your proceeds from sale of rights is : Prahm Corp. wants to raise $4.5 million via a rights offering. The company currently has 550,000 shares of common stock outstanding that sell for $80 per share. Its underwriter has set a subscription price of $40 per share and will charge the company..

Which method of controlling pledged inventory : Which method of controlling pledged inventory provides the greatest degree of security to the lender?

What was the interest expense for the year : The Cant Get More Fun Than This Company reported EBIT of $20 million and net income of $11 million. If the corporate tax rate is 35% for this company in this tax bracket, what was the interest expense for the year?

Earnings available to common stockholders : Preferred stock dividends __________ earnings available to common stockholders.

User Account

All Pages