Internet Exercises

1. More on Certified Public Accountants (CPAs)

Instructions

The textbook introduces public accounting and defines the Certified Public Accountant (CPA). By following the link to the American Institute of Certified Public Accountants you can learn more about the CPA. Click on the link for students and explore the profession. Be sure to complete the online ethics quizzes, read a few CPA profiles, and learn more about career options. When you are through, return to this page and respond to the questions below.

American Institute of Certified Public Accountants http://www.aicpa.org

1. What is a Certified Public Accountant? What are the requirements to become one?

2. CPAs might choose careers in public practice, industry, or government/not-for-profit. Describe two career opportunities in one of these areas.

3. Professional ethics are extremely important to CPAs. Based on your experience in completing the online quizzes on ethics, discuss at least two reasons why ethics are important to the profession.

4. The CPA Vision Project: 2011 and Beyond, is an initiative to help shape the future of the CPA profession. Visit the CPA Vision Project Web site at http://www.cpavision.org to learn more about the project. Describe at least four forces impacting the CPA profession. List and discuss five core competencies for CPAs of the future.

2. Understanding Annual Reports

Instructions

Visit the Annual Report Gallery by following the link below. Choose a company and follow the link to examine its most recent annual report. You may choose to print the information or download a pdf version of the report.

Annual Report Gallery http://www.reportgallery.com/

Using information from the annual report, answer the following questions.

1. What is the name of the company you chose? What is the year for the annual report? List the major divisions of the company.

2. Based on information from the most recent annual report, calculate the following ratios:

   Profit Margin

   Return on Assets

   Return on Equity

   Receivables Turnover

   Inventory Turnover

   Total Asset Turnover

   Current Ratio

   Quick Ratio

   Debt to Total Assets

   Times Interest Earned Ratio

   Earnings Per Share

   Dividends Per Share

3. Visit the International Annual Report Gallery by following the link below. Examine an annual report for a foreign company.

4. International Annual Report Gallery http://www.reportgallery.com/international.htm

   Discuss any major similarities and differences between the information provided in the domestic company annual report you described above and the foreign report you examined.