Questions from Financial Accounting


Q: What does “PE” stand for in the PE ratio,

What does “PE” stand for in the PE ratio, and how do investors use this ratio?

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Q: What are the basic ownership rights of common stockholders?

What are the basic ownership rights of common stockholders?

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Q: Which form of business organization is most common? Which form of

Which form of business organization is most common? Which form of business organization is larger in terms of total sales, total assets, earnings, and number of employees?

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Q: Creative Technology reports inventory using the lower of cost and net realizable

Creative Technology reports inventory using the lower of cost and net realizable value (NRV). Below is information related to its year-end inventory. Calculate the total amount to be reported for endi...

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Q: Describe the primary advantages and disadvantages of a corporation.

Describe the primary advantages and disadvantages of a corporation.

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Q: Explain how an LLC or an S corporation represents the “best

Explain how an LLC or an S corporation represents the “best of both worlds” in terms of business ownership.

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Q: Explain the difference between authorized, issued, and outstanding shares.

Explain the difference between authorized, issued, and outstanding shares.

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Q: The articles of incorporation allow for the issuance of 1 million shares

The articles of incorporation allow for the issuance of 1 million shares of common stock. During its first year, California Clothing issued 100,000 shares and reacquired 10,000 shares it held as treas...

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Q: What is par value? How is it related to market value

What is par value? How is it related to market value? How is it used in recording the issuance of stock?

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Q: Identify and briefly describe the three categories of cash flows reported in

Identify and briefly describe the three categories of cash flows reported in the statement of cash flows.

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