Questions from General Accounting

Q: Why is the use of free cash flows increasing?

Why is the use of free cash flows increasing?

Q: Broome (2004) recommends that the FASB should provide more guidance

Broome (2004) recommends that the FASB should provide more guidance on classification of cash flows for the three sections. What guidance would you suggest?

Q: Monsen (2001) proposes using cameral accounting to reduce the difficulties

Monsen (2001) proposes using cameral accounting to reduce the difficulties in preparing the Statement of Cash Flows using the direct method. Evaluate Monsen’s proposal from an implementation perspecti...

Q: How do you think the efficient-markets hypothesis impacts the drafting

How do you think the efficient-markets hypothesis impacts the drafting of accounting standards? Bear in mind that many questions have been raised about the efficient markets hypothesis itself.

Q: To what extent should the liquidity measures revisions be considered if LIFO

To what extent should the liquidity measures revisions be considered if LIFO were to be eliminated from U.S. GAAP? Provide examples of those likely measures that would be affected. . As an interesting...

Q: Reexamine Exhibit 13.11. Explain the purpose of each performance

Reexamine Exhibit 13.11. Explain the purpose of each performance measure. As a manager, which performance measure would you want to use. Which measure would you want used to evaluate you? Why? How wou...

Q: Why do we need international accounting standards? Why not simply let

Why do we need international accounting standards? Why not simply let each country develop and use its own standards and let it go at that?

Q: The IASB and FASB are pursuing a single, converged conceptual framework

The IASB and FASB are pursuing a single, converged conceptual framework. The United States has a good start with SFAC No. 8. What additional changes should FASB make to further improve its conceptual...

Q: It might be said that we are slowly moving toward an asset

It might be said that we are slowly moving toward an asset-liability approach in the balance sheet. Which event situations support this statement?

Q: In July 2003, the SEC submitted to Congress its Study Pursuant

In July 2003, the SEC submitted to Congress its Study Pursuant to Section 108(d) of the Sarbanes-Oxley Act of 2002 on the Adoption by the United States Financial Reporting System of a Principles-Based...