ACC 311 WORKSHOP 2.2 CHAPTER QUESTIONS
Download 1) Describe the purpose of the balance sheet: 2) Explain why the balance sheet does not portray the market value of the entity: 5) Describe what is meant by an operating cycle for a typical manufacturing company: 10) Define the terms paid-in-capital and retained earnings. 11) Disclosure notes are an integral part of the information provided in the financial statements. In what ways are the notes crucial to understanding the financial statements and to evaluating the firm’s performance and financial health? 13) Define a subsequent event: 14) Every annual report of a public company includes an extensive discussion and analysis provided by the company’s management. Specifically, which aspects of the company must this discussion address? Isn’t management’s perspective too biased to be of use to investors and creditors? 15) The auditors’ report provides the analyst with an independent and professional opinion about the fairness of the representations of the financial statements. What are the four main types of opinion an auditor might issue? Describe each. 19) Where can we find authoritative guidance for balance sheet presentation under IFRS? 20) Describe at least two differences between U.S. GAAP and IFRS in balance sheet presentation.