What are subsequent events and why are they reported in financial statements? Describe the subsequent event Canadian Tire reported in its 2011 statements. What is the relevance of this event to stakeholders? Do you think the event when reported in the financial statement would be "news" to any stakeholder who was very interested in Canadian Tire? Explain. Why was the event described in the note disclosed and not recorded in the financial statements?
Answer to relevant QuestionsCanadian Tire has one of the oldest, most well-known loyalty programs in Canada, Canadian Tire money. Examine Notes 3 and 22 regarding customer loyalty and answer the following questions:a. Why do companies have loyalty ...Explain why it's difficult to finance a new business by using a large amount of debt. What concerns would a lender have if they were asked to provide a loan that would represent 90 percent of the company's financing? What are dividends? Why are dividends not expensed when calculating net income whereas interest is expensed? What is meant by the term "economic consequences"? Why does accounting have economic consequences? Why do you think property dividends are accounted for at their market value instead of their carrying amount? Why are property dividends relatively uncommon?
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