Chapter 2, Problem 2EP

a.

To determine

Explain the accounting principle which is used by foreign and domestic companies for financial statements’ preparation.

b.

To determine

Identify if the foreign and domestic companies provide a set of financial statements that includes the same components.

c.

To determine

Differentiate between the formats of income statement of two companies.

d.

To determine

Give five differences between the formats of balance sheet of companies.

e.

To determine

Mention terminologies difference if exists between the companies’ balance sheet and income statements.

f.

To determine

Identify if there is the similarity between the two companies on the basis of the scope and content of the information provided in the notes to the financial statements

g.

To determine

Contrast the overall presentation of the financial statements and notes to the financial statements between the companies.