Questions from Financial Reporting

Q: Why should capitalized interest be added to interest expense when computing times

Why should capitalized interest be added to interest expense when computing times interest earned?

Q: Identify the accounting principle(s) applicable to each of the

Identify the accounting principle(s) applicable to each of the following situations: a. Tim Roberts owns a bar and a rental apartment and operates a consulting service. He has separate financial stat...

Q: Why is it difficult to determine the value of assets?

Why is it difficult to determine the value of assets?

Q: Is it feasible to get a precise measurement of the funds that

Is it feasible to get a precise measurement of the funds that could be available from long-term assets to pay long-term debts? Discuss.

Q: For a given firm, would you expect the debt ratio to

For a given firm, would you expect the debt ratio to be as high as the debt/equity ratio? Explain.

Q: Capital leases that have not been capitalized will decrease the times interest

Capital leases that have not been capitalized will decrease the times interest earned ratio. Comment.

Q: How is return on investment different from return on total equity?

How is return on investment different from return on total equity? How does return on total equity differ from return on common equity?

Q: What is return on investment? What are some of the types

What is return on investment? What are some of the types of measures for return on investment? Why is the following ratio preferred? Why is the interest multiplied by (1 − Tax Rate)?...

Q: How does operating income differ from net income? How do operating

How does operating income differ from net income? How do operating assets differ from total assets? What is the advantage in removing no operating items from the DuPont analysis?

Q: The ratio return on assets has net income in the numerator and

The ratio return on assets has net income in the numerator and total assets in the denominator. Explain how each part of the ratio could cause return on assets to fall.