You are required to prepare a reflection paper that incorporates your answers to the followingquestions:1. Besides earning a profit, what other objectives might a business have? How canAccounting play an important role in these objectives?2. A new manager of a retail company suggests that the company should prepare itsStatement of Profit or Loss on the basis of cash receipts and cash expenditures (except forthe acquisition of fixed assets, such as plant and equipment). He argues that managers,investors, creditors, and others are more interested in cash receipts and disbursementsthan in accrual-based accounting. Do you think he is correct? Explain.3. The manager of your company told you to go out to the warehouse and countmerchandise inventory. He said that owner is coming for a meeting next week and themanager wanted to put on a good show. He asked you to make the inventory higher bycounting the first and last row twice. The higher ending inventory will result in higher netprofit. What should you do?

ANSWER 1. Sometimes, Profitable businesses go under because they don't remain competitive or…

Answered: You are required to prepare a…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 1RE

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A new manager of a retail company suggests that the company should prepare its Statement of Profit or Loss on the basis of cash receipts and cash expenditures (except for the acquisition of fixed assets, such as plant and equipment). He argues that managers, investors, creditors, and others are more interested in cash receipts and disbursements than in accrual-based accounting. Do you think he is correct? Explain.
Which of the following is NOT correct about the importance of accounting? Select one: a. It ensures that transactions are recorded for future reference. b. It can assist the users to identify the financial position of an organization, whether the company is making a profit or a loss and the necessary follow-up actions that should be taken c. It can help to improve the salary of the employees d. It can provide a picture of the financial position of a business
Question: A new manager of a retail company suggests that the company should prepare its Statement of Profit or Loss on the basis of cash receipts and cash expenditures (except for the acquisition of fixed assets, such as plant and equipment). He argues that managers, investors, creditors, and others are more interested in cash receipts and disbursements than in accrual-based accounting. Do you think he is correct? Explain. Minimum of 500 words
Which of the accounting controls ensure that a company's resources are used efficiently and economically? Select one: a. All of the available choices b. Making use of any payment discounts that are available c. Paying bills on time Od. Bidding for suppliers
Accounting information helps key stakeholders of the business to make decisions.From the following options,which one is the decision that an internal stakeholder is unlikely to make? A.Make decisions about how toset product selling price,whether to advertise and how much to spend on advertising B.Decide which products to continue to sell and when to add new products or drop old ones C.Identify what resources and employees the business needs,and to set benchmarks against which they can later measure the business's progress towards its goals D.Analyse the business's financial reports to decide whether to purchase shares of the company
20)Which of the following is the best definition of an internal user of accounting information? A) Creditors, such as banks, that use accounting information to evaluate the risk of lending money B) Investors who use accounting information to decide whether to buy or sell stock C) Managers who use accounting information to plan, organize, and run a business D) Labor unions who use accounting information to examine the ability of the company to pay increased wages and benefits
Who will be a user of financial statements, and what will they be used for? Question 17 options: Lenders will use financial statements to decide whether to invest in a company. Investors will use financial statements to decide whether to lend money to a company. The marketing department is interested in the operating income figures in the financial statements. Managers will use financial statements to make decisions about their company.
Which of the following is true of financial accounting information? Select one: a.It focuses on the past-oriented financial performance of a company. b.It is primarily used by managers to make internal business decisions. c.It is prepared based on cost-benefit analysis. d.It only measures the cash transactions of a company.
In carrying out operations and finances in a business, entrepreneurs usually review again decide on operational and financial activities. From these conditions, then: 2. Explain what is meant by Harvesting and its purpose.
For a retail business,which of the following is not part of its operating cycle? A.obtaining capital from owners form daily operations B.selling inventory to customers C.perchasing inventory from suppliers using cash D.collecting cash from customers
What is the accounting equation and discuss how it impacts on the operations of a business? 2. Why is liquidity critical for a business and how might this affect decision making? 3. Why is investment appraisal important to a business? Use examples to support your reasons. 4. What is meant by relevant costs and critically explain their role in decision making. 5. Discuss the benefits of the information contained in the Income Statement/Profit and Loss Account.
The goal of management accounting is to: a. Help bankers to make lending decisions b. Help the government to monitor company’s activities c. Help the investors to make decisions d. Help managers to make decisions

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You are required to prepare a reflection paper that incorporates your answers to the following questions: