Questions from Business Foundation

Q: Explain the impact of accounting standards such as GAAP and the Sarbanes

Explain the impact of accounting standards such as GAAP and the Sarbanes-Oxley Act on corporate accounting. (1) Should U.S. public companies with no significant overseas business activity be forced to...

Q: Describe the accounting equation, and explain the purpose of double-

Describe the accounting equation, and explain the purpose of double-entry bookkeeping and the matching principle. (1) How does double-entry bookkeeping help eliminate errors? (2) Why is accrual-based...

Q: Identify the major financial statements, and explain how to read a

Identify the major financial statements, and explain how to read a balance sheet. (1) Why do analysts need to consider different factors when evaluating a company’s ability to repay short-term versus...

Q: Explain the purpose of the income statement and the statement of cash

Explain the purpose of the income statement and the statement of cash flows. (1) How could two companies with similar gross profit figures end up with dramatically different net operating income? (2)...

Q: Explain the purpose of ratio analysis, and list the four main

Explain the purpose of ratio analysis, and list the four main categories of financial ratios. (1) Why is it so important to be aware of extraordinary items when analyzing a company’s finances? (2) Why...

Q: Identify three fundamental concepts that affect financial decisions, and identify the

Identify three fundamental concepts that affect financial decisions, and identify the primary responsibilities of a financial manager. (1) What role does the company’s strategic plan play in the proce...

Q: Describe the budgeting process, three major budgeting challenges, and the

Describe the budgeting process, three major budgeting challenges, and the four major types of budgets. (1) What are some of the risks of failing to create and manage budgets? (2) How does zero-based b...