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Principles of Accounting IIACC – 291 Week 4:Discussion Question 1:Why are companies required to prepare a statement of cash flows? Why is the statement of cash flows divided into three…

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Principles of Accounting IIACC – 291 Week 4:Discussion Question 1:Why are companies required to prepare a statement of cash flows? Why is the statement of cash flows divided into three sections? What does each section tell you about the operations of a company?What are the differences between the direct and indirect presentation of cash flows? Why does the Financial Accounting Standards Board allow both methods? Which do you prefer? Why?Discussion Question 2:What are some common ratios used to analyze financial information? Which are the most important? What are some examples of how ratios are used in the decision making process?Two popular methods of financial statement analysis are horizontal analysis and vertical analysis. What are the differences between these two methods?Discussion Question 3:Why do corporations buy back their own stock? What does it tell you about the corporation? What effect does the purchase have on the price of a companyҀ™s stock?Does your Annual Report discuss stock repurchase or balances of treasury stock?· ACC 291 Week 4 Individual Exercise E 11-15, E12-1, E12-2,Problem P11-6A· ACC 291 Week 4 LT B Summary· ACC 291 Week 4 WileyPLUS Assignment Exercise 11-1 , E11-15, E11-16 Problem P11-6A, P11-8A

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