Short answer


Explain how to calculate the price-earnings ratio and describe how it is used in analysis of a company's financial condition and performance.



Explain how to compute book value per common share and discuss how it can be used to analyze the financial condition of a corporation.



Explain the difference between a large stock dividend and a small stock dividend. In addition, explain how to record these two types of stock dividends



Describe the journal entries required to record the issuance of bonds at par and the payment of bond interest.


Describe the journal entries required to record the issuance of bonds at a premium and the payment of bond interest, including any applicable amortization.



On May 1 of the current year, a company paid $200,000 cash to purchase 6%, 10-year bonds with a par value of $200,000; interest is paid semiannually each May 1 and November 1. The company intends to hold these bonds until they mature. Prepare the journal entry for the accrual of interest for the year-end December 31



Explain the value of separating cash flows into operating activities, investing activities, and financing activities to financial statement users in analyzing cash flows and the company's financial performance and condition. 



What are the four standards for comparisons in financial analysis? Give an example of each.


What are the basic assumptions of CVP analysis with regard to variable cost, fixed cost, and selling price per unit? (Assume a single product).



How are unfavorable variances recorded? How are favorable variances recorded? 

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