Problem 1. What are examples of irregular items? How does a change in accounting principles affect the financial statements? Who in the organization is responsible for the application of a change in an accounting principle? Why?
Problem 2. What is horizontal analysis? What is the value in using horizontal analysis? Why would a company use this analysis? What does this analysis tell you?
Problem 3. What is the liquidity ratio? Provide specific examples
Problem 4. What is the solvency ratio? What are some specific examples?
Problem 5. What is the profitability ratio? What are some specific examples?