All answers should be between 100 to 200 words
QUESTION 1: The balance sheet pulls pieces of the other financial statements into its layout. What are those pieces and do they pull the focus from the other statements into the balance sheet? Anyone else have thoughts on this--how do the statements interact with each other?
Question 2: Cash flow is very important and cash balances can be found on two of the financial statements--the balance sheet and the cash flow statement. In your opinion, do you think the cash flow statement provides better information about cash then the balance sheet? If so, what specific items do you think provide better information?
QUESTION 3: Analyzing financial statements is very important for managers, creditors and investors to do. To assist in this process, there are some ratios that people look at in determining the health of the company. Many of these ratios depend on the information found throughout the statements. Is anyone familiar with these rations? What do they tell us?
QUESTION 4: Many look to this statement to see what dividends have been paid for the specific time period. If dividends are not paid, some assume that the company is reinvesting in itself. In everyone's opinion, what does this mean? What financial statements and where would you look at to determine if there is a reinvestment?
QUESTION 5: I have found that with the computerized world we are living in, we do not necessarily distinguish between the debits and credits as we are performing accounting work--the computer just automatically does it for you! What does everyone think about this--given this technology, how important is it to have a full understanding of debits and credits?
QUESTION 6: Some organizations share their financial statements with their employees at every level of the organization, while others do not. How is this information presented at everyone's place of employment? Is it shared with everyone? What are the advantages and disadvantages of sharing this information?