Questions from College Accounting

Q: The books have been closed for the first year of business for

The books have been closed for the first year of business for Smith Computer Center. The company ended up with a marginal profit for the first three months in operation. Thad expects faster growth as...

Q: Explain how net cash flows from operating activities is calculated using the

Explain how net cash flows from operating activities is calculated using the direct method.

Q: The issuance of stock is an investing activity. Agree or disagree

The issuance of stock is an investing activity. Agree or disagree? Why?

Q: Explain what is meant by financing activities.

Explain what is meant by financing activities.

Q: Explain why depreciation is added to net income when using the indirect

Explain why depreciation is added to net income when using the indirect method.

Q: Compare and contrast the needs of investors, creditors, and management

Compare and contrast the needs of investors, creditors, and management as they relate to financial statement analysis.

Q: Stockouts could easily result if inventory is higher than it should be

Stockouts could easily result if inventory is higher than it should be. Agree or disagree? Please explain.

Q: What does possible liquidation have to do with the ratio of debt

What does possible liquidation have to do with the ratio of debt to total assets?

Q: Why do many Unearned Revenue accounts have to be adjusted?

Why do many Unearned Revenue accounts have to be adjusted?

Q: Rate of return on assets is affected by return on sales and

Rate of return on assets is affected by return on sales and asset turnover. Agree or disagree?