Questions from General Accounting


Q: How does the term “embedded derivatives” compare with the term

How does the term “embedded derivatives” compare with the term “embedded journalists” (from the Iraqi War)?

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Q: What is classification shifting?

What is classification shifting?

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Q: Describe the general findings from capital market research concerning the information content

Describe the general findings from capital market research concerning the information content of accounting numbers and the effects of alternative accounting policies.

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Q: Why is the choice between the FIFO-LIFO inventory methods an

Why is the choice between the FIFO-LIFO inventory methods an interesting issue in capital market research?

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Q: As an investor, how would you react to a company changing

As an investor, how would you react to a company changing is inventory accounting from FIFO to LIFO? Why?

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Q: Over the years, the research findings regarding changing from FIFO to

Over the years, the research findings regarding changing from FIFO to LIFO have varied? Why do you suppose this is the case?

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Q: Why may accounting policies with no direct cash flow consequences indirectly affect

Why may accounting policies with no direct cash flow consequences indirectly affect investors or creditors?

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Q: What is the importance of the FAF and FASAC to the success

What is the importance of the FAF and FASAC to the success of the FASB?

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Q: The three attempts at standard setting in the private sector (CAP

The three attempts at standard setting in the private sector (CAP, APB, and FASB) have all dealt with the need for a theoretical foundation. Why were the CAP and the APB unsuccessful at this endeavor?...

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Q: Lev talks about the low correlation between earnings and stock returns.

Lev talks about the low correlation between earnings and stock returns. Ou and Penman paper discuss the possibility of making abnormal returns based upon published financial data. Are these papers in...

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