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Why are companies required to prepare a statement of cash flows?
Why is the statement of cash flows divided into three sections?
What does each section tell you about the operations of a company?
What are the differences between the direct and indirect presentation of cash flows?
Why does the Financial Accounting Standards Board allow both methods? Which do you prefer? Why?
Income statement, Little Books Inc. recently reported $3 million of net income. Its EBIT was $6 million, and its tax rate was 40 percent.
You have been engaged to review the financial statements of Water Sync Inc. In the course of your investigation you find a number of irregularities during the current year.
Why would you select the percentage of sales method of calculating doubtful accounts as opposed to the percentage of receivables method?
Explain how governments use fiduciary and permanent funds. The McCracken County Humane Society (MCHS), which is part of a county's reporting entity, established a permanent fund to provide support for its pet neutering program.
A clerk accidentally posts a prenumbered sales invoice of $625 as $265 to a customer's account. What control would detect this error?
What is your opinion as to whether the funds in the plan should be part of a company's financial balance sheet or a separate entity and not part of the company's financials? If they are part of the financials what is it saying as to the ownership ..
Can Microsoft Access serve as a corporate database solution, or is it strictly a personal database solution? What might be the difference between a personal and corporate database solution?
Lupa Inc. trades its used machine (cost $12,000 less $4,000 accumulated depreciation) for a new machine. In addition to exchanging the old machine (which had a fair market value of $9,000), Lupa also paid cash of $3,000.
Three potential investments projects (A, B, and C) at Clouse Corporation all require the same initial investment, have the same useful life (three years), and have no expected salvage value
Folding Squid Technologies initiated a just-in-time inventory system in 2007. Now the production manager, Chan Ziaou, wants to apply the same principles to the entire production process. His recommendation is the firm adopt a:
Gunk Goblin sells vacuums and just launched a policy where customers have the right to return a vacuum during a three-year period following purchase.
Transfer title of their personal home to Barbara. They purchased the house in 1998 and their basis today is $400,000. The fair market value of the house is $500,000. The house is subject to a 25-year, $250,000 mortgage.
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