Chapter 12 discussion:
What is the cost of an investment in bonds? When is interest on bonds recorded?
Distinguish between the cost and equity methods of accounting for investments in stocks.
Chapter 13 discussion:
Distinguish among the three types of activities reported in the statement of cash flows.
Identify five items that are adjustments to convert net income to net cash provided by operating activities under the indirect method.
Chapter 14 discussion:
Two popular methods of financial statement analysis are horizontal analysis and vertical analysis. Explain the difference between these two methods.
What do the following classes of ratios measure? (a) Liquidity ratios. (b) Profitability ratios. (c) Solvency ratios.
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