资源描述:
《罗斯公司理财第二章:财务报表和现金流》由会员上传分享,免费在线阅读,更多相关内容在工程资料-天天文库。
1、CHAPTER2ACCOUNTINGSTATEMENTS,TAXESANDCASHFLOWAnswerstoConceptsReviewandCriticalThinkingQuestions1.Liquiditymeasureshowquicklyandeasilyanassetcanbeconvertedtocashwithoutsignificantlossinvalue.It’sdesirableforfirmstohavehighliquiditysothattheyhavealargefactorofsaf
2、etyinmeetingshort-termcreditordemands.However,sinceliquidityalsohasanopportunitycostassociatedwithit-namelythathigherreturnscangenerallybefoundbyinvestingthecashintoproductiveassets-lowliquiditylevelsarealsodesirabletothefirm.It’suptothefirm’sfinancialmanagement
3、stafftofindareasonablecompromisebetweentheseopposingneeds2.Therecognitionandmatchingprinciplesinfinancialaccountingcallforrevenues,andthecostsassociatedwithproducingthoserevenues,tobe“booked”whentherevenueprocessisessentiallycomplete,notnecessarilywhenthecashisc
4、ollectedorbillsarepaid.Notethatthiswayisnotnecessarilycorrect;it’sthewayaccountantshavechosentodoit.3.Thebottomlinenumbershowsthechangeinthecashbalanceonthebalancesheet.Assuch,itisnotausefulnumberforanalyzingacompany.4.Themajordifferenceisthetreatmentofintereste
5、xpense.Theaccountingstatementofcashflowstreatsinterestasanoperatingcashflow,whilethefinancialcashflowstreatinterestasafinancingcashflow.Thelogicoftheaccountingstatementofcashflowsisthatsinceinterestappearsontheincomestatement,whichshowstheoperationsfortheperiod,
6、itisanoperatingcashflow.Inreality,interestisafinancingexpense,whichresultsfromthecompany’schoiceofdebt/equity.Wewillhavemoretosayaboutthisinalaterchapter.Whencomparingthetwocashflowstatements,thefinancialstatementofcashflowsisamoreappropriatemeasureofthecompany’
7、sperformancebecauseofitstreatmentofinterest.5.Marketvaluescanneverbenegative.Imagineashareofstocksellingfor–$20.Thiswouldmeanthatifyouplacedanorderfor100shares,youwouldgetthestockalongwithacheckfor$2,000.Howmanysharesdoyouwanttobuy?Moregenerally,becauseofcorpora
8、teandindividualbankruptcylaws,networthforapersonoracorporationcannotbenegative,implyingthatliabilitiescannotexceedassetsinmarketvalue.6.Forasuccessfulcompanythatisrap