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Question: 1. Is VWV a manufacturer/reseller or a service company?

2. Explain the term cost of goods sold in your own words. Why is this item significant?

3. Does the company have employees?

4. Does the company own some type of property? Can we tell from looking at the income statement alone or do we need to look at the balance sheet too?

5. Are earnings per share important information for VWV Company?

6. How do the dividends affect the income statement?

7. How do we know that VWV Company is using the accrual basis of accounting? Hint: Do not forget to look at the balance sheet from the prior module.

8. Why is the company using the accrual basis of accounting rather the cash basis?

9. Comment on operating income versus net income.

Information related to above question is enclosed below:

Attachment:- Business.rar

Reference no: EM132221613

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