Compute busytown’s conservatism ratio

Assignment Help Finance Basics

Reference no: EM131414374

The following information was taken from the annual report of Busytown Industries.

a. Compute Busytown's conservatism ratio, and comment on how conservative the company's reporting methods are.

b. Explain why the conservatism ratio provides a measure of the extent to which a company's financial accounting methods are conservative, and provide examples of accounting treatments that may increase or decrease the ratio.

Reference no: EM131414374

Questions Cloud

Brief discussion about allergic rhinitis diseases : Brief discussion about diseases: Allergic rhinitis, Atopic dermatitis, contact dermatitis and Pediatric asthma (5-11 years of age)

Compute the net decrease in the investment : Trading securities are carried on the balance sheet at market value. Compute the net decrease in the investment in trading securities during 2008.

Describe advantage and one disadvantage of a national policy : The primary goal of your last assignment is to critically analyze the primary features of the American national government. The results of your analysis will indicate what you have learned over the last five weeks. In order to accomplish this task..

Explain types of descriptive statistics that might be best : QNT/275- Identify the types of descriptive statistics that might be best for summarizing the data, if you were to collect a sample. Analyze the types of inferential statistics that might be best for analyzing the data, if you were to collect a sample..

Compute busytown’s conservatism ratio : Explain why the conservatism ratio provides a measure of the extent to which a company's financial accounting methods are conservative, and provide examples of accounting treatments that may increase or decrease the ratio.

Analyzes the basic legal social and economic environment : MGMT499- Analyzes the basic legal, social, and economic environment in which the organizations operate. Analyzes the managerial, operational, and financial issues impacting the organizations including:

What are the sustainable growth rates for your subject : What are the sustainable growth rates for your subject company over the period that you studied?How do they compare with the actual growth rates that the company experienced over the period studied?What are the consequences faced by firms that grow a..

Prepare the journal entries that were recorded by seasaw : How much pension liability should be recorded on Seasaw's balance sheet as of the end of the current year?

How does this essay meet the assignment criteria : Your researched argument is meant to stand as a culmination of all the work you have done throughout the course.You will more than likely be asked to write many of these as you move further into your academic and professional career, and you shoul..

User Account

All Pages