Quizzer Page for: All You Need to Know About Financial Reporting

Answer the following questions about the lecture...don't forget to submit them using the button at the bottom when you finish...we will grade your answers and e-mail you a digitally signed certificate of completion...

Answer the next 10 questions in the boxes provided
1.  What is the primary goal of  financial reporting?
 


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2.  Define "capital" or owner's equity. 


 

3.    When should an enterprise capitalize a cost rather than expense it?

 

4. What is the effect of recording unearned revenue as revenue of this period?  
 

5.  What is the effect of a company not recording a liability of the period? 


6. What is the process by which a portion of the value of an asset is charged to each accounting period?


7. What are some of the weaknesses of the balance sheet as a tool to analyze a company? 

8.  Name the three most popular liquidity ratios?

9.  What are the strengths and weaknesses of ratio analysis?

10.  Why is the issue of "future benefit" critical to the issue of capitalization?

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