Identify several ways in which you currently use accounting information in your life as a student. Also identify several situations in which, while you are still a student, you might be required to supply financial information about yourself to others.
Boeing Company is the largest manufacturer of commercial aircraft in the United States and is a major employer in Seattle, Washington. Explain why each of the following individuals or organizations would be interested in financial information about the company.
You recently invested $12,000 of your savings in a security issued by a large company. The security agreement pays you 7 percent per year and has a maturity two years from the day you purchased it. What is the total cash flow you expect to receive from this investment, separated into the return on your investment and the return of your investment?
Describe which professional organization(s) would most likely be of greatest value to you if your position involved each of the following independent roles:
Audits of financial statements are an important part of the accounting process to ensure integrity in financial reporting.
What is the purpose of an audit?
As an external user of accounting information, what meaning would you attach to an audit that concludes that the financial statements are fairly presented in conformity with generally accepted accounting principles?
Would your interest in investing in this same company be affected by an auditor’s report that concluded the financial statements were not fairly presented? Why or why not?
Four accounting majors, Maria Acosta, Kenzo Nakao, Helen Martin, and Anthony Mandella, recently graduated from Central University and began professional accounting careers. Acosta entered public accounting, Nakao became a management accountant, Martin joined a governmental agency, and Mandella (who had completed a graduate program) became an accounting faculty member.
Assume that each of the four graduates was successful in his or her chosen career. Identify the types of accounting activities in which each of these graduates might find themselves specializing several years after graduation.
Locate the Home Depot, Inc., 2005 financial statements in Appendix A of this text. Briefly peruse the financial statements and answer the following questions:
Name the titles of each of Home Depot’s financial statements that provide specific information about economic resources, claims to resources, and changes in resources and claims.
Name three other sections from Home Depot’s 2005 financial statements that might be useful to a potential investor or creditor.
Due to the introductory nature of this chapter and the conceptual nature of its contents, no items labeledProblemsare included. In all future chapters you will find two problem sets, A and B, that generally include computations, are more complex, and generally require more time to complete than the Exercises.
