Question 1

Briefly list and describe the principal financial statements.

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Question 2

Briefly describe the International Accounting Standards Board (IASB) and who can use IFRS in the United States?

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Question 3

What is US GAAP?

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Question 4

Explain the roles, duties, and responsibilities of managers and governing boards of reporting entities.

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Question 5

The following information is based on the financial statements of Hadley Company, a large manufacturer.Annual revenues are $65,387 million and net expenses (including income taxes) are $62,313 million.During the year, the firm collected $64,995 million in cash from customers and had cash outflows associated with payments to suppliers and vendors of $56,411 million.

REQUIRED:
a.Calculate net income and net cash flow for the year.
b.How can cash collected from customers be less than revenues?
c.How can cash payments to suppliers and vendors be less than expenses?

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Question 6

Hemd Company has liabilities equal to one fourth of the total assets. Hemd's shareholders'equity is €60,000. Using the accounting equation, what is the amount of liabilities for Hemd?

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Question 7

Understanding financial reports requires an understanding of the activities of the business.Describe at least four investing activities that firms use to obtain the productive capacity to carry out its business activities.

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Question 8

Discuss internal and external users of accounting information. What areas of accounting provide them with information? Give an example of the type of report each type of user might use.

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Question 9

Maeve Irwin is the CEO of Maeve's Spa. At the end of its accounting period, December 31, 2013, Maeve's Spa has assets of £450,000 and liabilities of £125,000. Using the equation that holds for equality of assets to liabilties and shareholders' equity, determine the following amounts:
 a)Shareholders’ Equity as of December 31, 2013.

b)Shareholders’ Equity as of December 31, 2014, assuming that assets increased by £65,000 and liabilities increased by £35,000 during 2014£.

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Question 10

The following information is reported by ComCo, a Singapore company; all figures are in millions of Singapore dollars ($).The firm reported revenues of $15,882, cost of goods sold of $13,671, interest and other expenses of $2,113, and tax expense of $67.It also reported $14,894 in cash receipts from customers, $102 in miscellaneous cash receipts, $6,447 in cash payments to employees and creditors, $6,861 in cash payments for milk, $402 in cash payments for interest, and $64 in cash payments for taxes. 
Required:
1)Calculate net income and its net cash flow.
2)Explain why ComCo's net income is so much different than its net cash flow.

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Question 11

Understanding financial reports requires an understanding of the activities of the business.Describe at least three operating activities that firms use to generate earnings.

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Question 12

As a basis for measuring performance for a particular accounting period, the cash basis of accounting has three weaknesses.Briefly describe the three weaknesses.

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Question 13

FASB board members make standard-setting decisions guided by a conceptual framework
that addresses the objectives of financial reporting and qualitative characteristics of accounting information.. Briefly describe the objectives of financial reporting and qualitative characteristics of accounting information

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Question 14

What are the roles, duties, and responsibilities of the independent auditor?

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Question 15

The balance sheet of Parler, a European Union communications firm, shows current assets of €21,000 million, current liabilities of €16,849 million, shareholders' equity of €17,654 million, and noncurrent assets of €30,402 million.What is the amount of noncurrent liabilities on Parler's balance sheet?

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Question 16

Describe some of the factors that would affect a firm's goals and strategies.

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Question 17

Concerns over the quality of financial reporting have led, and continue to lead, to government
initiatives in the United States including, the Sarbanes-Oxley Act of 2002. Briefly describe the Sarbanes-Oxley Act of 2002.

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Question 18

Describe the accrual basis of accounting.

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Question 19

Who are the users of financial statements and what do they need?

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Quiz 1: Introduction to Business Activities and Overview of Financial Statements and the Reporting Process