Why are the generally accepted accounting principles usa


Questionnaire

Question 1.- Which are the three big financial decisions in the world of corporate finance? And which is the final objective of any financial decision inside a company?

Question 2.- Which do you think is the most important external user of the financial statements of a company.

Question 3.- Why are the Generally Accepted Accounting Principles (USA) and the International Standards (Europe) so important in today's business world?

Question 4.- If a Company changes it collection system and the average collection period passes from 60 to 90 days in average, will this increase the cash flow of the Company? Is it a positive measure?

Question 5.- Which is the difference between the liquidity and the solvency ratio?

Question 6.- How can you measure how good is a company managing its assets? And how do you measure how good is the company managing the money of the shareholders?

Question 7.- What do we mean when we say that a company is highly leveraged and is very risky?

Question 8.- Why is EBITDA sometimes named as the operational profit of a company and Net Income as the operational and financial profit of a company?

Question 9.- Which are the three big components of the cash flow statement of the company?

Question 10.- If the levels of accounts payables of a company are increasing, that means that the company is increasing or decreasing it's needs of working capital? Is this something positive or negative for the company?

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Financial Accounting: Why are the generally accepted accounting principles usa
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