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Off-Balance sheet financing activities creat potential problems for financial statement users.
1. What is meant by off-balance sheet financing?
2. Do you think the pharmusotical company engages in off-balance sheet financing?What areas provide opportunity to do this?
3. Why would pharmusotical company want to engage in off-balance sheet financing?
4. What problems might off-balance sheet financing create for financial statement users?What would believers in market efficiency have to say about off-balance sheet financing activities?
What are some internal controls related to cash? Why is control over cash important? What are the pros and cons of segregation of duties over cash? Why is a bank reconciliation considered an internal control over cash? How does it provide control?..
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