Part 1

  1. What is a “one time charge” and how is it used in accounting
  1. Define the “art of accounting and finance”
  1. When should revenue be recorded on the company books?
  1. What does the Income Statement show?
  1. What are operating expenses?
  1. How did Xerox play the revenue recognition game?
  1. Define the term “capital expenditures”
  1. Which company incorrectly reported capital expenditures?
  1. Define the term “accruals.
  1. Define the term “allocation”
  1. Give an example of the accounting process “allocation”
  1. . Define the term “depreciation”.
  1. Which industry changed depreciation methods resulting in increasing profits?
  1. Describe the “dot-com boom” and how company valuations resulted in negative consequences.
  1. Define the term “Goodwill”
  1. Identify two ways that WorldCom “cooked the books”
  1. Why would the finance department tell you not to spend any money even though the company is profitable?
  1. Explain how cash in the bank and profit are different.
  1. Define GAAP and identify it’s purpose.
  1. Why does GAAP matter?
  1. What is a 10-Q and a 10-K?
  1. Which government agency controls publicly traded companies?