547 words - 3 pages
Done by: Shannan T.
Week 1 Assignment: Financial Statements
Numbers play a major role in business and to keep track of all of those numbers, financial statements are used. Financial statements are a way of communicating those numbers within the business organization. Financial statements are used as a foundation for decisions that will impact information systems, production, management, and marketing. Any income that a company is receiving needs to be able to cover any of the overhead debt costs such as employee wages, utilities, rent, goods, and supplies. If a company is not in good financial standing, it may not qualify to receive additional loans for expansion or may need to
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The four basic financial statements are the balance sheet, income statement, statement of cash flow, and the statement of retained earnings. The balance sheet depicts the current financial circumstances of the company. This reports the company’s assets, liabilities, and net equity as of a given point in time. The income statement reports the company’s cost and revenues. This reports the company’s income, expenses, and profits over a period of time. The statement of cash flow describes the changes is cash and cash equivalents. This reports the company’s activities, such as its operating, investing, and financing costs. The statement of retained earnings
1502 words - 7 pages
Accounting and Financial Statements
Upper Iowa University
Accounting and Financial Statements
In this essay I am going to explain and identify external users of accounting information and give detail on the main characteristics and how these characteristics and the conceptual framework develop the benefits of financial statements for external users.
Financial accounting includes information distributed to external users that are not part of the enterprise, e.g. stockholders, creditors, customers and suppliers, although the information is also of interest to the company's officers and managers.
External users have an interest in the businesses final accounts. They
1525 words - 7 pages
January 31, 2010
ACC/280 Principles of Accounting
Accounting is a systematic proocess that identifies, records, and communicates the economic events of an organization to interested users (Weygandt, 2008). The financial information gathered is used to determine a company’s financial status and provide reports and insights needed to make sound financial decisions. The purpose of accounting is to provide economic financial information for investor, creditors, and other external users. Accounting identifies and records all activities that effect the organization financially. Accounting is a means of communicating the numbers.
1092 words - 5 pages
January 30, 2013
Decisions are made daily by company management, lenders, and shareholders. To make informed, intelligent business decisions, there are several strategies that are used by each of the fore mentioned entities. When deciding if investing is the right choice, if a company will be able to repay a loan, or what needs to happen to make a company more efficient, the best way to get an inside look at the company and the information needed, would be to look at the financial statements. By looking at the income statement, balance sheet, and the statement of cash flow, the financial health of the company can be discovered.
A shareholder or potential
789 words - 4 pages
Financial Statements Paper
The 4 fundamental monetary reports are the balance sheet, income Statement, retained earnings statement, as well as statement of cash flow (Kimmel, Weygandt, Kieso, 2011). The balance sheet is used to show an idea of what a business has (Kimmel, Weygandt, Kieso, 2011). The balance sheet reports the quantity of assets and claims to assets for a time period (Kimmel, Weygandt, Kieso, 2011). Assets are products the business has that might be used if required to get money. The claims to assets are either lender or proprietor. The lender could be the person or business that's using the asset as security to a debt. As soon as debt is paid the lender releases asset
1362 words - 6 pages
Accounting Processes’ and Financial Statements
The purpose of this paper is to provide a foundation of knowledge for accounting and financial bookkeeping. To accomplish this, I will focus on two areas. First, I will provide some general definitions for common accounting processes and ideas; namely, generally accepted accounting principles, double entry accounting, historical cost, accrual basis versus cash basis accounting, and current assets and liabilities versus non-current items. Second, I will examine recent financial statements for three companies (i.e. Samsung, Lockheed Martin, and RTL Group), specifically their balance
266 words - 2 pages
Answer the following questions using the annual report of Dell, Inc. in Appendix A.
a. Who is responsible for the preparation and integrity of Dell’s financial statements and notes? Management has the primary responsibility for the preparation and integrity of Dell’s financial statements and notes.
b. In which note does Dell report its significant accounting policies used to prepare financial statements? Note 1 is where Dell report its significant accounting policies used to prepare financial statements.
c. What type of audit opinion is reported in its annual report and whose opinion is it? An integrated audit as been completed, of Dell Inc.’s January 28, 2005 consolidated
1296 words - 6 pages
| (Amount earned from providing services to clients) |
5. Expense accounts.
* Salaries Expense | (Amount earned by employees for work already done) |
* Advertising Expense | (Cost incurred for advertising, promotions, and other marketing activites) |
An annual report, a document issued by management to the shareholders of a company, presents financial information and results of operations for the past fiscal year. The annual report includes financial statements, notes to financial statements, management's discussion and analysis of financial condition, and the auditor's report.
* Financial Statements:
Financial statements include four
384 words - 2 pages
Media Summary Paper
ACC/300- Principles of Accounting
January 26, 2015
Media Summary Paper
The media that i used was the video on financial statements, “financial statements are records that outline the financial activities of a business, an individual or any other entity. Financial statements are meant to present the financial information of the entity in question as clearly and concisely as possible for both the entity and for readers. Financial statements for businesses usually include: income statements, balance sheet, statements of retained earnings and cash flows, as well as other possible statements (Vestopedia, 2015).
From the video we learnt in
824 words - 4 pages
Financial Statements paper
September 22, 2011
Financial Statements paper
Accounting is an action needed by companies in business. Without accounting and the knowledge of the inner workings of financial statements, a business is doomed to failure. In accounting there are four basic financial statements used for an array of reasons.
The first financial statement in accounting is the balance sheet. The balance sheet is used to represent an illustration at a point of what a business owns and owes; these are also known as assets and liabilities (Kimmel, Weygandt, & Kieso, 2011). The next statement used is the income statement. The income statement displays just how
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distribution of the funds. Maximizing the shareholders is key as well.
Distinguish among the types of financial information contained in the various financial statements. Which statements. Which provide information on a company’s performance over reporting period , and which present data on a company’s current position? What sort of valuable information may be found in notes to financial statements? Describe a situation in which the information contained in the notes would be essential to making an informed decision about the value of a corporation.
When distinguishing among the types of financial information contained in various financial statements, which consist of statement of retained
692 words - 3 pages
The Importance of Financial Statements
Accounting is one key function in organizations today. It is also becoming a top career students are studying. According to Weygand (2008) accounting consists of three key points –it identifies, records, and communicates the economic events of the organization. (p. 4). To grasp the concept of accounting this paper entails the purpose of accounting. The four basic financial statements are identified. The paper will also explain how financial statements interrelate with each other. It will further elaborate the importance to creditors, investors, managers, and employees.
Companies need financial information to make decision on various aspects of a
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This will confirm our understanding of the arrangements for our audit of the financial statements of Apollo Shoes, for the year ending December 31,2011.
We will audit the Company's balance sheet as of December 31,2011 and the related statements of income, retained earnings, and especially cash flows for the year then ended, for the purpose of expressing an opinion on them. The financial statements are the responsibility of the Company management. Our responsibility is to express an opinion on the financial statements based on our audit.
We will conduct our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to
483 words - 2 pages
Lee College Financial Statements
ACC 380: Accounting for Not-For-Profit Organizations
June 4, 2012
Lee College Financial Statements
Why do Not-For-Profit organizations need financial statements? The accounting system for nonprofits is designed to capture the economic activities of the firm and its financial position. The financial statements are constructed based on the “Accounting Equation” in which: Assets = Liabilities + Net Assets (Keating, 2008). This equation is very helpful, but not show us how or why net assets change over time. This is the purpose of the financial statements. For Lee College, a private not-for-profit, the financial statements required under the FASB
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Health Care Cost Study: Financial Statements
The Patton-Fuller Community Hospital has been serving the community since 1975; so handling financial statements are familiar with them. The discussion in this paper will enlighten what is the difference of audited and unaudited statements, the relationship between revenue sources and expenses on performance, and the effect of revenue sources on financial reporting. It will also discuss is the hospital’s revenues and expenses grouped for planning and control.
The audited and unaudited balance sheets from the Patton-Fuller statements differ by the net allowance of bad debts and retained earnings, or unrestricted fund balance. The
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ACC201 Financial Accounting
Part I. Search the course background information, the Internet and/or the Cyber Library. Discuss each of the following terms. Your discussion should expand on the definition as given in the course terms. Explain why this concept is important to financial statements.
A. Generally Accepted Accounting Principles. As per Investopedia, GAAP refers to "common set of accounting principles, standards and procedures that companies use to compile their financial statements. GAAP are a combination of authoritative standards (set by policy boards) and simply the commonly accepted ways of recording and reporting accounting
872 words - 4 pages
June 4, 2012
A subsidiary is its own legal entity that is governed by a board of directors. For independence, the subsidiary corporation has its own liability and is separate from the parent corporation for taxation and regulatory guidance from state and federal agencies. Control over the subsidiary is maintained by the parent corporation holding more than fifty-percent shareholder value and voting rights in the subsidiary charter.
The professional responsibilities of the certified public accountant (CPA) are to provide assurance services and attestation services that include an audit and review of historical financial statements and
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Good accounting gone bad
Principal of Accounting 1
1. Anatomy of a financial sheet
2. Financial statement errors
c. North Babylon Union Free School District
3. Sarbanes Oxley Act
4. Corporate Accountability
Accounting has been defined as "the language of business" because it is the basic tool for recording, reporting, and evaluating economic events and transactions that affect organizations. For the financial statements to be of value, it is imperative they are accurate and presented in conformity with accounting standards. As a result, it is eminent that the financial statements are accurate
1805 words - 8 pages
Advantages of IFRS compared to GAAP reporting standards
1.1 Focus on investors
One of the significant advantages of IFRS compared to GAAP is its focus on investors in the following ways:
1. The first factor is that IFRS promise more accurate, timely and comprehensive financial statement information that is relevant to the national standards. And the information provided by financial statements prepared under IFRS tends to be more understandable for investors as they can understand the financial statement without the necessity of other sources which makes investors more informed
2. This also helps new or small investors by making the reporting standards simpler and better
744 words - 3 pages
the reporting entity’s basic financial statements misleading. Organizations making up a financial reporting entity are the primary government and its component units. The primary government is a state or local general-purpose government, or a special-purpose government. Component units are the entities for which the primary government is financially accountable.
9-5. A component unit is a legally separate entity for which the primary government is financially accountable. The GASB also considers a component unit to be an entity
Ch. 9, Answers, 9-5 (Cont’d)
whose relationship with the primary government is so important that excluding it from the financial reports
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Cutoff relates to whether transactions and events have been recorded in the correct accounting period. Audit procedures must ensure that transactions occurring near year-end are recorded in the financial statements in the proper period.
For example, the auditor may want to test proper cutoff of revenue transactions at December 31. This can be done by examining a sample of shipping documents and sales invoices for a few days before and after year-end.
Audit Evidence is evidence obtained during a financial audit and recorded in the audit working papers.
In the audit engagement acceptance or reappointment stage, audit evidence is the information that the auditor
498 words - 2 pages
Effect of Unethical Behavior
September 2, 2012
Effect of Unethical Behavior
A quote from Ray Beier, a partner of PricewaterhouseCoopers, puts the idea of ethical behavior and its effect on financial statements into perspective. He states, “From the corporate scandals, we now realize that accounting was too rules-based, where it needs to be more principles-or objectives-based” (Bisoux, 2005, p. 24). Corporations had been so concerned with financial gain that the idea that there was a need for better internal controls did not exist. As long as the corporation was providing financial statements that presented the picture of a company continuing to grow and make money, it was
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statements, and evaluate your current financial position?
Step 1: Analyze your current financial position
Step five in the five-step financial planning process discusses the importance of regularly reevaluating and revising your plan because personal circumstances often change. List two life changes that may require you to update your financial plan.
Getting Married and Having Children.
912 words - 4 pages
In early 2014, Diamond Foods Inc. paid $5 million to settle its accounting fraud. The company’s CFO manipulated the cost of walnuts by pushing some of the cost to a later period. This practice led to higher income and misled investors in 2010 and 2011. Diamond restated its 2012 financial statements.
In reviewing the SEC filing of Diamond Foods, Inc., I found that its auditors at first issued an unqualified opinion on its 2012 financial statements. “In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of Diamond Foods, Inc. and subsidiaries as of July 31, 2012 and 2011 …”
However, due to the discovery of the
380 words - 2 pages
Patton-Fuller Financial Statement Summary
Our team paper consists of reviewing healthcare financial statements. The time span is one year, and it starts 2008 and ends 2009. We will review how the unaudited statements differed from the audited. We will also pay attention to the differences in revenue and expenses, the effect of revenue sources and explain how expenses are grouped for control and planning. We need all of these aspects in order for a company or organization to be successful. In going over the financial statements from 2008 to 2009 we have found the effect of revenue sources in financial reporting at the hospital are as follows:
The operating income dropped $15,799
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easy Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information for decision making is commonly called:
c a. finance.
easy In the audit of historical financial statements, which of the following accounting bases is the most common?
c a. Regulatory accounting principles.
b. Cash basis of accounting.
c. Generally accepted accounting principles.
d. Liquidation basis of accounting.
easy Any service that requires a CPA firm to issue a report about the reliability of an assertion that is made by another party is
584 words - 3 pages
Financial Statement Restatement
Financial Accounting/ ACC537
April 14, 2014
In this paper I will discuss the restatement of Diamond Food Inc.’s financial statements. The errors in accounting principles involved and what effect it had on financial statements. How changes affected the stockholders.
In February 2012, Diamond Foods Inc., issued a statement that they have to restate the financial statements for 2010 and 2011. Diamond Foods Inc., was forced by the audit company y to restate earnings after an extensive investigation. It was discovered that “internal controls were inadequate and that certain grower payments for the 2011 and 2010 crops were
2621 words - 11 pages
. Causes of subprime lending crisis.
d 16. Management bias.
b 17. Adoption of IFRS.
c 18. Role of OSC.
d 19. Definition of GAAP.
b 20. Changing nature of the economy.
d 21. Exercise of professional judgement.
c 22. Major factors in the reporting environment.
a 23. Impact of technology on financial reporting.
b 24. Nature of the “Balanced Scorecard”.
a 25. Responsibility for financial statements.
d 26. GAAP for private enterprises.
d 27. Reporting principles
b 28. SOX.
a 29 AcSB’s standard setting process
E1-30 Objectives of financial reporting.
E1-31 Role of securities commissions and stock exchanges.
E1-32 User needs
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Top Five Ways to Avoid a Tax Audit
1. Check your figures
One of the most common red flags for auditors – erroneous data entry – is also one of the most preventable. It seems simple enough to follow the advice to “double-check your return,” but surprisingly, people often are too careless regarding their taxes, said Thomas Jensen, managing partner of Vaerdi Financial in Portland, Oregon.
He advised waiting for all your income reports, bank and investment statements and other applicable financial paperwork to arrive before starting your tax return.
“Sometimes people simply forget (income) or they don’t get all of their forms gathered, and they make mistakes that are avoidable,” Jensen said
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Sarbanes Oxley Act has had many positive impacts on American businesses, but has also had its share of criticism. As a result of the implementation of the Sarbanes Oxley Act, firms now produce financial information that is more transparent and holds some form of accountability. One of the greatest benefits of the Sarbanes Oxley Act is that investors are more confident because they now have access to more accurate financial statements and are able to assess the financial strength and stability of publicly traded companies when making investment decisions. American businesses now have stronger corporate governance as companies are more focused on being compliant and honest in
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reduce the impact of that factor on your finances? One factor in economic conditions that may affect your financial future is if I were to get laid off at my job. I could reduce the impact of that factor on my finances by going to get another job that is for immediate hire during the mean time until I found something that was more stable and permanent. I also could reduce that by only planning for what I really need instead of what I enjoy. That is how I could reduce the impact.
9. Which step in the five-step financial planning process requires you to organize your financial information, create personal financial statements, and evaluate your current financial position? Have you ever
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expectation that there will not be a profit during that period, the taxable liability should not be reported as it would create a false interpretation of the financial reports.
Procedures for Reporting Accounting Changes and Error Corrections
In the United States the governing regulations for accounting and audit procedures is known at the Generally Accepted Accounting Principles (GAAP). GAAP offers various methods for compiling financial statements for corporations to allow the financial statements to be tailored to present accurately the financial situation of the company issuing the report. As the GAAP are frequently reviewed and updated, and the nature of business is influx, it
294 words - 2 pages
Ch.1: Comprehensive Questions: 1-23
February 16, 2015
Ch.1: Comprehensive Questions: 1-23
1. License individuals to practice as CPAs.
State Board of Accountancy
2. Promulgate GAAP.
Financial Accounting Standards Board
Government Accounting Standards Board
Federal Accounting Standards Advisory Board
3. Issue Statements on Auditing Standards.
4. Regulate the distribution and trading of securities offered for public sale.
Securities Exchange commission
5. Establish its own code of professional ethics.
State Board of Accountancy
American Institute of Certified Public Accountants
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, Liabilities, Equity, Revenues and Expenses,
1. Do firm’s accounting statements show the true picture of the firm’s economic and business reality?
2. It was informed in Chapter 1, that organisations constantly create and exchange values with other firms.
3. How do organisations create value rather than destroying its values.
4. Does it necessary to have an partnership agreement between the partners ?
5. How does partnership organisations distribute its profits amongst the partners ?
Chapter 3 – Introducing financial statements
I was amazed how the concept of balance sheet is used and as there is no specific rules in how a firm set out their
7986 words - 32 pages
3. Financial statements generally refer to the four basic financial statements: statement of financial
position, income statement, statement of cash flows, and statement of changes in equity. Financial
reporting is a broader concept; it includes the basic financial statements and any other means of
communicating financial and economic data to interested external parties.
4. If a company’s financial performance is measured accurately, fairly, and on a timely basis, the right
managers and companies are able to attract investment capital. To provide unreliable and irrelevant
information leads to poor capital allocation which adversely affects the securities market.
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The following are all examples of depreciation methods except:
Remaining book value
Units of production
Plant assets are always shown on the balance sheet at the current market value.
It is acceptable for a company to use an accelerated method of depreciation for income tax purposes and a different method for its financial statements.
ACC/400 Self-Assessment Answers
Week One: Assets and Internal Controls
Chapter 7 - Financial accounting: Tools for business decision making (4th ed.) by Kimmel, Weygandt and Kieso
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sales and each income statement account. It shows the mix of assets debt that produces income and the mix of the sources of capital, where by current or long-term debt of by equity funding. Financial Statement Analysis prepared for the internal auditors, Many different financial measures are used to analyze financial statements and rank the performance of competing investment opportunities, including growth in sales, return to stockholders, profit margin, and return on equity. These are just four possible measures considered and evaluated by investors and creditors. Financial statements presented in various formats to help facilitate analysis. A classified set of financial statements groups
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Worldwide accounting diversity
I. Considerable differences exist across countries in the accounting treatment of many items. These differences can result in significantly different amounts being reported in the financial statements prepared by companies using different GAAP.
II. A variety of factors influence a country’s accounting system.
A. Legal system – in code law countries, accounting rules tend to be legislated; common law countries tend to have a non-legislative organization that develops accounting standards.
B. Taxation – financial statements serve as the basis for taxation in many countries. In those countries with a close
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Generally Accepted Accounting Principles
Generally Accepted Accounting Principles (GAAP) is the standard framework of guidelines for financial accounting. It includes the standards, conventions, and rules accountants follow in recording and summarizing transactions, and in the preparation of financial statements.
Contents * 1 Overview * 1.1 Principle of regularity * 1.2 Principle of sincerity * 1.3 Principle of the permanence of methods * 1.4 Principle of non-compensation * 1.5 Principle of prudence * 1.6 Principle of continuity * 1.7 Principle of periodicity * 2 United States' GAAP Hierarchy * 3 National GAAP
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1. Describe clearly the accounting changes Harnischfeger made in 1984 as stated in Note 2 of its financial statements
In 1984 they changed the depreciation method they were using to expense their plants, machinery and equipment to the straight-line method for financial reporting purposes. This change included a adjustment of the residual values on certain machinery and equipment. They also included the products purchased from Kobe Steel, LTD and sold by them in their net sales. Furthermore they also included the financial statements of some foreign subsidiaries.
2. What is the effect of the depreciation accounting method change on the reported income in 1984? How will this change
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the promis they made to make samsung the best company in the world.
Statement of Cash Flows
Samsung is using the indirect method and the way you can tell its that method is how it starts with Net Income /Profit for the year. The statement follows the order that is operating, investing, and financing. The trend of the financing activities is an outflow because
Notes to the Financial Statements
For the past year, there were 37 notes to the financial statements. One of the accounting policies is Changing accounting policy and disclosures. This policy is basically all the amendments that were added over time to the compony overall statements such as some
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; Zone Americas; Zone Asia, Oceania and Africa; Nestlé Waters; Nestlé Nutrition; and Other (MarketWatch 2015). Currently, Nestlé employs total of 339,000 people around the world.
(Source: Annual Report, Nestlé Company 2014)
ANALYSIS OF FINANCIAL RATIOS:
To begin with, it is important to consider analysis of financial statements as one of key components to “measure profitability and financial conditions of a company” (Mark 2014). There are three basic financial statements consisting of:
* The balance sheet: which summarize what a firm owns and owes at a given moment of time
* The income statement: which reports on how much a company earned for a specific period of analysis
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worked by employees. – Inventory on hand. – Amounts owed by customers. – Amount of money in bank.
Financial Accoun0ng Informa0on
• For external users (investors) and managers. • Used by investors to make decisions to buy, sell, or hold shares of a company. • Annual report and its ﬁnancial statements.
– Common rules used so investors can compare with other companies’ ﬁnancial statements. – No “tailor‐made” informa3on
Management Accoun0ng Informa0on
• For internal users such as president, marke3ng manager, produc3on manager, etc. • Used for three management func3ons:
– Planning. – Implementa3on. – Control.
• Deciding what
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significant deficiencies and material weaknesses in internal controls that you note in your audits.”
SAS 115 amends and replaces SAS 112. Noteworthy changes in SAS 115 include new definitions of material weaknesses and significant deficiency. The new definitions as described in SAS 115 are listed below.
“A deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis.”
In SAS No.112 material weakness’ definition stated “more than a remote likelihood” that a material
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In this document of ACC 548 Final Exam you will find the next information: 1. Under GASB rules for the financial reporting entity
2. According to GASB Statement No. 44, all of the following is a recommendation category for the CAFR
Business - Accounting
Assume a government is a special-purpose government engaged in only one governmental activity. Which financial statements would be require
A public college had tuition and fees of $20,000,000. Scholarships, for which no services were required, amounted to $2,000,000. Graduate assistantships, for which services were required, amounted to $1,000,000. The amount to be reported by the public college as net tuition and fees would be
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Knapp Cases â€“ NextCard
1. Should auditors evaluate the soundness of a clientâ€™s business model? Defend your answer.
The auditors donâ€™t have the full responsibility of looking over the client business model. But they should a good understanding of the clientâ€™s business model and industry, this way they can develop more accurate expectations for financial statements assertions.
2. Identify and briefly describe the specific fraud risk factors present during the 2000 NextCard audit. How should these factors have affected the planning and execution of that engagement?
The three examples of risk factors are pressure, opportunities, and
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) remeasurements of defined benefit (see AASB 119 Employee Benefits);
(c) gains and losses arising from translating the financial statements of a foreign operation (see AASB 121 The Effects of Changes in Foreign Exchange Rates);
(d) gains and losses from investments in equity instruments measured at fair value through other comprehensive income in accordance with paragraph 5.7.5 of AASB 9 Financial Instruments;
(e) the effective portion of gains and losses on hedging instruments in a cash flow hedge (see AASB 139 Financial Instruments: Recognition and Measurement); and
(f) for particular liabilities designated as at fair value through profit or loss, the amount of the change in fair value