Why Would the Company Want XBRL Assurance If the IRS

question 38

Essay

Why would the company want XBRL assurance if the IRS or SEC were going to be using its data?

Analyze changes in financial statements over time through horizontal analysis.

Understand the concept of financial leverage and its impact on return on equity.

Compute and interpret the turnover ratios, including accounts receivable turnover and inventory turnover.

Understand the significance of earnings per share (EPS) and how it affects shareholder value.

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Definitions:

Magnetic Field Rotation

This term refers to the phenomenon seen in rotating machinery and devices like electric motors, where the magnetic field within these devices rotates, causing the rotor to spin.

Phase Rotation

The direction of rotation of a magnetic field produced by the voltages of a poly-phase power system.

Kilovolt-ampere

A unit of apparent power in electrical systems, equivalent to 1,000 volt-amperes, often used in the rating of electrical equipment.

Liquid-cooled

A method of heat dissipation that uses a circulating fluid, typically water or coolant, to remove heat from components.