Beruflich Dokumente
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Readings on Blackboard:
Homework Questions
Q2 The qualitative characteristics of financial reports do NOT include which of the following:
Relevance
Timeliness
Comparability
Understandability
Q3 As a financial analyst with an investment advisory firm, your job is to follow the construction
industry. In particular, you compare different firms in this industry to recommend to clients which
firms to invest in.
Requirements:
they need to check, like changes in prices, investments in items or even the time, are essentially
influenced to allow the company look for more ideas and make more good decisions happen, otherwise
Without having any interest or importance of how a business is going to work (lack of relevance),
economical information would be not necessary.
Initiative to buy it
Cheaper prices
Convenience
Easy use
Additional Exercise:
o Tanya opens a bank account and puts $5000 into it to start her jewellery making business.
o She makes cash sales (revenue) of $500
o She has expenses paid in cash of $100
o She buys a polishing machine for $2,000 cash
o She withdraws $400 for her own use
500 2000
100 400
2000
400
owners’ equity=assets-liabilities
500 8000-2500=5500
Where 5500-500 is the same amount of money that Tanya had invested at the beginning (5000 )