Questions from Financial Reporting

Q: Assume that a corporation is a nonpublic company. Comment on the

Assume that a corporation is a nonpublic company. Comment on the requirement for this firm to disclose earnings per share.

Q: Keller & Fink, a partnership, engages in the wholesale fish

Keller & Fink, a partnership, engages in the wholesale fish market. How would this company disclose earnings per share?

Q: Dividends on preferred stock total $5,000 for the current

Dividends on preferred stock total $5,000 for the current year. How would these dividends influence earnings per share?

Q: Using the descriptions of assets, liabilities, and stockholders’ equity,

Using the descriptions of assets, liabilities, and stockholders’ equity, summarize the changes to these accounts for cash inflows and changes for cash outflows.

Q: There are two principal methods of presenting cash flow from operating activities

There are two principal methods of presenting cash flow from operating activities—the direct method and the indirect method. Describe these two methods.

Q: The Mason Company, a retail business had $100,000

The Mason Company, a retail business had $100,000 in cash sales and $450,000 in credit sales for 2012. The accounts receivable balances were $50,000 and $60,000 on December 31, 2011 and 2012, respecti...

Q: If a firm presents an income statement and a balance sheet,

If a firm presents an income statement and a balance sheet, why is it necessary that a statement of cash flows also be presented?

Q: Why is it important to disclose certain noncash investing and financing transactions

Why is it important to disclose certain noncash investing and financing transactions, such as exchanging common stock for land?

Q: Would a write-off of uncollectible accounts against allowance for doubtful

Would a write-off of uncollectible accounts against allowance for doubtful accounts be disclosed on a cash flow statement? Explain.

Q: Fully depreciated equipment costing $60,000 was discarded, with

Fully depreciated equipment costing $60,000 was discarded, with no salvage value. What effect would this have on the statement of cash flows?