Questions from Financial Reporting

Q: When examining financial statements, a note that describes contingencies should be

When examining financial statements, a note that describes contingencies should be reviewed closely for possible significant liabilities that are not disclosed on the face of the balance sheet. Commen...

Q: Is profitability important to a firm’s long-term debt paying ability

Is profitability important to a firm’s long-term debt paying ability? Discuss.

Q: List the two approaches to examining a firm’s long-term debt

List the two approaches to examining a firm’s long-term debt-paying ability. Discuss why each of these approaches gives an important view of a firm’s ability to carry debt.

Q: Would you expect a telephone company to have a high debt ratio

Would you expect a telephone company to have a high debt ratio? Discuss.

Q: Discuss how noncash charges for depreciation, depletion, and amortization can

Discuss how noncash charges for depreciation, depletion, and amortization can be used to obtain a short run view of times interest earned.

Q: One of the ratios used to indicate long-term debt-

One of the ratios used to indicate long-term debt-paying ability compares total liabilities to total assets. What is the intent of this ratio? How precise is this ratio in achieving its intent?

Q: Indicate the status of pension liabilities under the Employee Retirement Income Security

Indicate the status of pension liabilities under the Employee Retirement Income Security Act.

Q: Why is the vesting provision an important provision of a pension plan

Why is the vesting provision an important provision of a pension plan? How has the Employee Retirement Income Security Act influenced vesting periods?

Q: Indicate the risk to a company if it withdraws from a multiemployer

Indicate the risk to a company if it withdraws from a multiemployer pension plan or if the multiemployer pension plan is terminated.

Q: What portion of net worth can the federal government require a company

What portion of net worth can the federal government require a company to use to pay for pension obligations?