Problem 1: What are estimates? Describe the appropriate adjusting entries for two examples of estimates.
Problem 2: Describe the differences between Vodafone's balance sheets and a typical U.S company balance sheet.
Problem 3: How do earnings management practices affect the quality of earnings?
Assume that a manufacturing company's annual income statement included a large gain from the sale of investment securities. What factors would you consider in determining whether or not this gain should be included in an assessment of the company's permanent earnings?