International financial reporting standards

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What is the major difference in approach of international financial reporting standards and U.S. GAM' accounting? What are the advantages and disadvantages of each?

markets are truly efficient, does it matter whether firms engage in earnings management? On the other hand, if firms manage earnings, what does that say about management's view on effi¬cient markets?

What financial ratios would a credit rating agency such as Moody's or Standard & Poor's be most interested in? Which ratios would be of most interest to a stock market analyst deciding whether to buy a stock for a diversified portfolio?

The Crusty Pie Co., which specializes in apple turnovers, has a return on sales higher than the industry average, yet its ROA is the same as the industry average. How can you explain this?

The ABC Corporation has a profit margin on sales below the industry average, yet its ROA is above the industry average. What does this imply about its asset turnover?

Firm A and firm B have the same ROA, yet firm A's ROE is higher. How can you explain this? Use the DuPont system and the following data to find return on equity.

Leverage ratio (assets/equity) 2.2
Total asset turnover 2.0
Net profit margin 5.5%
Dividend payout ratio 31.8%

Recently, Galaxy Corporation lowered its allowance for doubtful accounts by reducing bad debt -s/ expense from 2% of sales to 1% of sales. Ignoring taxes, what are the immediate effects on (a) operating income and (b) operating cash flow?

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Reference no: EM13299990

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