Accounting 1 Unit5IndvlProject
THE FINANCIAL ANALYSIS OF WELLPOINT
Monica Jackson ACCT 205-1501B-06 UNIT 5 INDIVIUAL PROJECT AIU ONLINE
Financial Statements
Financial statement analysis allows systematic tools to be used in related data and general-purpose financial statements for making business decisions (American InterContinential University [AIU], 2015). It allows accounting data to be converted into efficient information. It reduces confusion in decision making and presents an effective and systematic basis for making internal and external business decisions (Chiappetta, Larson &Wild, 2002, p.22). Internal users of accounting include managers, officers, internal auditors, consultants, budget officers, and market researchers. Internal users make strategic and operational decisions. Financial statement analysis for internal users allows improvement in the company’s efficiency and effectiveness in providing products and services. External users are not directly involved in business and include shareholder, lenders, directors, customers, suppliers, regulators, lawyers, brokers and the press (Chiappetta, Larson &Wild, 2002, p.42). The goal of all the users is to evaluate company performance and financial condition. This includes evaluating past and current performances, current financial position and future performances and risks (Chiappetta, Larson &Wild, 2002, p. 44).
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Accounting Basis
Assets are resources that are expected to have current and future benefits and are funded by an organization’s financing. Assets include cash, accounts receivable, land, building, equipment, inventories, supplies, cash and all investment needed for operational purposes. Assets also include intangible rights granted by patents, copyright or license (AIU, 2015). Accounts receivable is created by selling products and services on credit. It is amounts owed to a company by its credit customers; also known as debtors. Assets amount and the makeup of assets differ from
Monica Jackson ACCT 205-1501B-06 UNIT 5 INDIVIUAL PROJECT AIU ONLINE
Financial Statements
Financial statement analysis allows systematic tools to be used in related data and general-purpose financial statements for making business decisions (American InterContinential University [AIU], 2015). It allows accounting data to be converted into efficient information. It reduces confusion in decision making and presents an effective and systematic basis for making internal and external business decisions (Chiappetta, Larson &Wild, 2002, p.22). Internal users of accounting include managers, officers, internal auditors, consultants, budget officers, and market researchers. Internal users make strategic and operational decisions. Financial statement analysis for internal users allows improvement in the company’s efficiency and effectiveness in providing products and services. External users are not directly involved in business and include shareholder, lenders, directors, customers, suppliers, regulators, lawyers, brokers and the press (Chiappetta, Larson &Wild, 2002, p.42). The goal of all the users is to evaluate company performance and financial condition. This includes evaluating past and current performances, current financial position and future performances and risks (Chiappetta, Larson &Wild, 2002, p. 44).
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Accounting Basis
Assets are resources that are expected to have current and future benefits and are funded by an organization’s financing. Assets include cash, accounts receivable, land, building, equipment, inventories, supplies, cash and all investment needed for operational purposes. Assets also include intangible rights granted by patents, copyright or license (AIU, 2015). Accounts receivable is created by selling products and services on credit. It is amounts owed to a company by its credit customers; also known as debtors. Assets amount and the makeup of assets differ from
References: American InterContinental University. 2015. Financial Statements: Inventory Method: LIFO; Weighted Average; FIFO [Intellipath] Anthem.com. Ethics and Compliance. Retrieved from http://mydigimag.rrd.com/allarticle/22931/110348/110348/allarticle.html. Barbera Chiappetta, John Wild & Kermit Larson. 2002. Fundamental Accounting Principles 16th Edition. NY, NY. McGraw- Hill Irwin. Corporate Information. 2014.WellPoint’s 2013 Annual Report. Retrieved from http://www.corporate-ir.net/media_files/irol/13/130104/2013_AR/corporate-information.html. Editorial Board. 2012. Accounting I & II. Schaumburg, IL: Words of Wisdom. Retrieved from http://wow.coursesmart.com/. John Goodman.2015. Are people getting more Health Care because of ObamaCare? Retrieved from http://townhall.com/columnists/johncgoodman/2015/04/11/are-people-getting-more-health-care-because-of-obamacare-n1983580/page/full. US Office of Personal Management Office of the Inspector General Office of Audits . 2013. Audit of Information Systems General and Application Controls at WellPoint Inc. Retrieved from http://www.opm.gov/our-inspector-general/reports/2013/audit-of-information-systems-general-and-application-controls-at-wellpoint-inc-1a-10-00-13-012.pdf. WellPoint, Inc. 2015. Form 10-K. Retrieved from http://ir.antheminc.com/phoenix.zhtml?c=130104&p=irol-reportsannual.