Explain the purpose of financial statement analysis

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Problem 1). Identify one (1) benefit and one (1) drawback (cost) to allowing managerial discretion within GAAP reporting requirements.

Problem 2). Define the "matching principle" and explain its importance to GAAP.

Problem 3.) In the Form 10-K, we typically find the five required financial statements approximately in the middle, followed by the "Notes to Consolidated Financial Statements."  Why are the Notes an integral part of the required GAAP reporting?

Problem 4.) How would you define and explain the purpose of "Financial Statement Analysis"?

Problem 5.) It has been said that "accounting is a political process." Give one example/reason/piece of evidence that might lead someone to believe this statement. Then, indicate whether you believe it is a true statement, and why.

Reference no: EM132887446

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