Accounting Essay Example | Topics and Well Written Essays - 1000 words - 3

Accounting - Essay Example A company that has low long term debt can abtain cheaper prices as far as interest rates from lenders. The disadvantage is that the company is leading idle potential opportunities to grow. c) A large cash balance allows a company to obtain interest revenue. A large cash fund gives a firm stability and reduces business risk. A disadvantege is the cost of opportunity of using that cash asset on some other projects that can generate a larger return on investment. 6. The change in methodoly from FIFO to average inventory created a price that is more realistic and better adjuted to market changes. The effects in the accounting books of such a change could be either an understatement or overstanment of the inventory total. 7. a) The mission of the FASB is to establish and improve standards of financial accounting and reporting for the guidance and education of the public including issuers, auditors, and users of financial information (Fasb, 2009). c) The procurement plan utilizes a framework of the following factors: pervasive of the issue, alternative solutionsk, technical feasability, practical consequence, covergence possibilities, cooperative opportunities, and