Question: Read the part of Note 1 on the use of
Read the part of Note 1 on the use of judgements, estimates, and assumptions. Why is this note included in the financial statements and why is it important? (In your answer discuss why estimates are necessary when CAE prepares its financial statements?) Explain why estimates can be difficult for managers to make.
Answer to relevant QuestionsNote 5 to CAE's financial statements shows that the accounts receivable balance shown on the balance sheet isn't exclusively accounts receivable. What other amounts are included in the accounts receivable balance? What ...Note 30 discusses credit risk faced by the company. What is the credit risk that CAE faces? What are the economic consequences to CAE of not managing its credit risk well? What steps does (should) the company take to ...Explain the difference between periodic and perpetual inventory control systems. Which do you think is the better system to use? Why? Onslow Ltd. (Onslow) is a small public company trading on a Canadian stock exchange. Onslow's managers have a bonus plan that is based on net income and the managers believe that the amount of reported earnings is important ...Why is it often necessary to use a cost formula for valuing inventory and determining cost of sales? Why can't the actual cost of the goods sold be used to calculate cost of sales in these situations?
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