Question

1. What does a “publicly owned” corporation mean?

2. What is the primary agency that governs such companies?

3. Extra credit: Define free cash flow(penalty if wrong)

4. Which of the accounting changes listed below is moreassociated with financial statements prepared in accordance withU.S. GAAP than with International Financial ReportingStandards?

To get credit, you must also provide an explanation for theanswer:

A) Change in depreciationmethod.

B) Change in reportingentity.

C) Change in estimateduseful life of depreciable assets.

D) Change from the FIFOmethod of costing inventories to the LIFO method.

Explain why the answer is right and the other choices arewrong.