Questions from Financial Accounting

Q: Herbert S. Bailey, Jr., published the following poem in

Herbert S. Bailey, Jr., published the following poem in Publishers Weekly (Jan. 13, 1975), calling to mind Edgar Allan Poe’s famous poem The Raven . Though my bottom line is black, I am flat upon my b...

Q: Munich-based automaker BMW switched how it classified certain expenses to

Munich-based automaker BMW switched how it classified certain expenses to match what it anticipates to be the format approved by International Financial Reporting Standards (IFRS). Period, BMW classif...

Q: The military’s money managers last year made almost $7 trillion in

The military’s money managers last year made almost $7 trillion in adjustments to their financial ledgers in an attempt to make them add up, the Pentagon’s inspector general said in a report released...

Q: The Wall Started Journal reported that analysts are worried about companies borrowing

The Wall Started Journal reported that analysts are worried about companies borrowing money to pay dividends and to repurchase outstanding shares of stock. Aircraft parts manufacturer Tran...

Q: Financial profiles, expressing the dollar value of financial statement accounts as

Financial profiles, expressing the dollar value of financial statement accounts as a percentage of total assets (for balance sheet accounts) and sales (for income statement accounts), are listed from...

Q: The business press follows the movement of stock prices very closely,

The business press follows the movement of stock prices very closely, especially when companies post their earnings announcements. Interestingly, there is no set pattern for how stock prices react to...

Q: Many companies selling stock to the public for the first time-

Many companies selling stock to the public for the first time-initial public offerings (IPOs)-are not yet profitable. According to a report issued by the research firm Sageworks, almost half of the co...

Q: The following pages contain the consolidated balance sheets and statements of income

The following pages contain the consolidated balance sheets and statements of income and cash flows taken from the 2019 annual report of the retail powerhouse Amazon. INSTRUCTIONS: Analyze the stateme...

Q: In the shareholders' equity section of its 2018 and 2019 balance sheets

In the shareholders' equity section of its 2018 and 2019 balance sheets, H&R Block reported accumulated other comprehensive income balances of $(14.3) million and $(20.4) million, respectively. The 20...

Q: Cash flow profiles over a three-year period are provided here

Cash flow profiles over a three-year period are provided here from recent financial statements for three well-known companies: Echostar Communications, Walmart, and US Airways (now part of American Ai...