This work of ACC 230 Week 3 Discussion Questions includes:
DQ1:
Post your answer to Problem 3.5 on p. 109 (Ch. 3), and then respond to the following
question: How can the information contained within the stockholder equity statement be
used for management and investor decision making? Provide specific examples of
situations in which the stockholder equity information might be used.
DQ2:
– Provide an example from the text or the Internet that demonstrates a situation in which a
company’s net profits looked good in the statements, but the gross or operating profits
presented a different picture. Discuss how this might have occurred.
– Respond to the question addressed in Problem 3.6 on p. 109 (Ch. 3): “Why is the
bottom-line figure, net income, not necessarily a good indicator of a firm’s financial
success?” (Hint: Look for indicators like liquidity or solvency to answer this discussion
question.)
