經(jīng)濟(jì)環(huán)境下的財(cái)務(wù)會(huì)計(jì) 第六版 課后習(xí)題答案

1、 1CHAPTER 1 FINANCIAL ACCOUNTING AND ITS ECONOMIC CONTEXT ISSUES FOR DISCUSSION ID1–1 Security analysts and stockholders: These users would use financial statements to try to estimate the future earnings and cash flow

2、potential of the company, which would be used to project a value for the company’s stock. Bank loan officers: These users would use the financial statements to determine the ability of a company to repay loans to the

3、 bank. A company’s customers and suppliers: These users would use financial statements to determine whether to extend credit to the company (suppliers) or whether to rely upon the company to be a supplier (customers).

4、 Both suppliers and customers would also use the financial statements to monitor the company’s profit margins. Public utilities: This group would use the financial statements to determine the company’s growth rate an

5、d how that might impact upon the company’s utility needs. Also, they would evaluate the company’s ability to pay its bills. Labor unions: These groups would use the financial statements to monitor the profitability o

6、f the company to help determine the amount of pay raises and benefits that it will negotiate for from the company. A company’s managers: The company’s managers will use the financial statements to assess the overal

7、l financial health of the company. This could impact the managers in a number of ways: raises, promotion opportunities, performance of other departments, etc. ID1–2 The board of directors serves various functions for a

8、 company. One is to represent and protect the interests of the stockholders who are not on the board. Another is to provide oversight and input to management. The managers are involved in running the business on a d

9、ay-to-day basis whereas the board is more focused on the bigger, long-term picture. A weak board may not ask probing questions of management but instead may take everything at face value and believe anything that man

10、agement says to them. A healthy management team would want a strong board that delivers valuable input. A management team that wants a weak board of directors may be trying to hide something (management fraud). eco

11、nomy is access to capital (stock markets). If this source is reduced because investors don’t believe the numbers that are reported, a very bad impact on the overall economy would result. ID1–7 This is the normal state

12、ment that an auditor would make about a company whose books it had audited and found no significant problems. This would be part of what is called a “non-qualified opinion”. If there was a particular item that the aud

13、itors did not agree with they would issue a “qualified opinion” – they would agree with everything except the qualified item that would be identified. “In our opinion”, it is their opinion and not a fact, “fairly, in a

14、ll material respects”, means that the auditors can not say that every single number is exactly accurate to the penny but that the numbers are generally about right. This reflects the concept of materiality. The audit

15、ors believe that all material items have been presented accurately. “in conformity with generally accepted accounting principles”, this means that the financial statements have been compiled in a way that meets all o

16、f the accounting principles that are called GAAP. ID1–8 Corporate governance describes the relationship among the stakeholders of a company, mainly : the shareholders, the Board of Directors, management and the company

17、’s auditors. Corporate governance mechanisms encourage management and the Board of Directors to act in the best interest of the shareholders and to provide the shareholders with accurate and timely financial informat

18、ion. The Sarbanes-Oxley Act was passed to upgrade the financial transparency of corporate operations, requiring increased financial disclosures and management responsibilities for the intergrity of the financial state

19、ments. Improved information provided to shareholders and other providers of capital will strenghten the confidence in the financial system, ultimately benefitting both providers and users of capital. ID1–9 Management

20、is charged with the responsibility to benefit the shareholders’ investment in the company. Choosing investments that will boost the short-term results of the company in lieu of long-term gains does not meet this requi

21、rement. While satisfying the needs of Wall Street analysts for short-term results, a management decision to forego larger long-term returns violates the relationship between the owners of the company and the manageme

22、nt of the company. Many observers feel that short-term profit pressures from analysts have caused management to ignore its responsibility to work for the long-term benefit of the shareholder. ID1–10 While the NYSE is

23、reacting to potential rules changes based on marketing considerations, the SEC is reacting based on a desire to improve the quality of financial information that companies disclose. The SEC has a very strong argument