Accounting

1. What makes accounting a valuable discipline?

2. How do generally accepted accounting practices differ from the laws of mathematics?

3. In what ways are CVS and Southwest Airlines comparable? Not comparable?
1. When a company has net income, what happens to its stockholders’ equity, its assets, and/or its liabilities?

2. Will the carrying value of a long term asset normally equal its market value?

3. If, at the end of the accounting period, you were looking at the T account for a prepaid expense like supplies, would you look for the amounts expended in cash on the debit or credit side? On which side would you find the amount expensed during the period?

4. How do the four basic financial statements meet the stewardship objective of financial reporting?

5. Why is it that land held for future use and equipment not currently used in the business are classified as investments rather than as property, plant, and equipment?