Accounting Theory and Analysis
Case Studies
Case 6-2: Objectives of Financial Statements
Discuss how a company’s primary financial statements are useful to potential investors who are trying to decide whether to buy stock in the company. Support your discussion by citing objectives outlined in the Conceptual Framework.
Case 6-3: Income Statement Format
Accountants have advocated two types of income statements based on differing views of the concept of income: the current operating performance and all‐inclusive concepts of income.
Required:
a. Discuss the general nature of these two concepts of income.
b. How would the following items be handled under each concept?
i. Cost of goods sold
ii. Selling expenses
iii. Prior period adjustments
Respond to the required questions (about 200 words per case = 400 Total), double-spaced, APA format (source citations and reference insertions) essay.In each Case Study, you must use at least three (3) references, including the textbook (included below).
Text book reference:
Schroeder, R. G., Clark, M. W., & Cathey, J. M XXXXXXXXXXFinancial accounting theory and analysis: Text and cases (12th ed.). Hoboken, NJ: Wiley
(This Assignment Box maybe linked to Turnitin.)
Please use attached template(See cover letter attachment, and use as template)