Questions from Financial Accounting

Q: The executives at Peach, Inc., are confused. The company

The executives at Peach, Inc., are confused. The company reports a net loss of $200,000, and yet its net cash flow from operating activities increased $300,000 during the same period. Is this possible...

Q: Identify the three types of comparisons commonly used in financial statement analysis

Identify the three types of comparisons commonly used in financial statement analysis.

Q: Pro Leather, a supplier to sporting goods manufacturers, has a

Pro Leather, a supplier to sporting goods manufacturers, has a current ratio of 0.90, based on current assets of $450,000 and current liabilities of $500,000. How, if at all, will a $100,000 purchase...

Q: Which profitability ratios best answer each of the following financial questions?

Which profitability ratios best answer each of the following financial questions? a. What is the income earned for each dollar invested in assets? b. What is the income earned for each dollar of sales...

Q: Determine whether each of the following changes in profitability ratios normally is

Determine whether each of the following changes in profitability ratios normally is good news or bad news about a company. a. Increase in profit margin. b. Decrease in asset turnover. c. Decrease in r...

Q: Hash Mark, Inc., reports a return on assets of 8

Hash Mark, Inc., reports a return on assets of 8% and a return on equity of 12%. Why do the two rates differ?

Q: Refer to the information in BE6–11, but now assume

Refer to the information in BE6–11, but now assume that Shankar uses a periodic system to record inventory transactions. Record the purchase of inventory on February 2, including the freight charges....

Q: Define earnings persistence. How does earnings persistence relate to the reporting

Define earnings persistence. How does earnings persistence relate to the reporting of discontinued operations?

Q: Shifting Formations, Inc., reports earnings per share of $1

Shifting Formations, Inc., reports earnings per share of $1.30. In the following year, it reports bottom-line earnings per share of $1.25 but earnings per share on income before discontinued operation...

Q: Explain the difference between conservative and aggressive accounting practices.

Explain the difference between conservative and aggressive accounting practices.