ACC 230 Week 3 Discussion Questions

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.)