Reference no: EM132488116

Question 1. Within the financial statements how does management use the financial statements to mitigate their risk as it pertains to their current liabilitiy Who else will be focused on them and why?

Question 2. What are contingent liabilities and why is management and others concern about them?

Question 3. Provide examples of non-current liabilities and how they impact the firm an how they are reflected in the financial statements.

Question 4. Provide examples of information provided by the financial statements other than the actual dollar amount.

Question 5. Why is it important that a company be able to pay its liabilities as they come due?

Question 6. Why are financial statement users particularly concerned about the amount of current liabilities a company has?

Question 7. Give three examples of possible contingencies that a company would report.

Question 8. How would a company report a contingency that is reasonable possible?

Question 9. How would a company report a contingency where the chance of loss is remote?

Question 10. How is a company's debt-to-equity ratio calculated?

Question 11. How is a company's times interest earned determined?

Question 12. Why do deferred tax liabilities exist?

Question 13. Briefly list the four criteria that require capital lease reporting by a lessee.

Question 14. How many of the four criteria must be met to require capital lease accounting?