Preview

Emba 600 Financial & Management Accounting

Good Essays
Open Document
Open Document
2411 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Emba 600 Financial & Management Accounting
Higher Colleges of Technology - ADMC Executive Master of Business Administration

EMBA 600: Financial & Management Accounting Instructor Name: Dr. Alexandros Pananis

Take-Home Exam
Question 1 )
ACCESS SOLUTIONS INC Suppose you have been recently hired as a consultant to Access Solutions Inc (ASI) a consulting firm offering accounting and financial solutions for small and medium sized companies. ASI has asked you to prepare material for a seminar in accounting for nonaccountants to be delivered to selected members of the middle management in one of its clients. Your supervisor advised your presentation to have a clear and meaningful structure which will provide answers to the following questions. List the three financial statements. Briefly describe the purpose each one serves and explain the connection between these three statements. The Financial Statements are the official records of businesses or personal financial activities which have to be prepared based on an International standards to be approved by external certified authorities or auditors and finally it should be published on a Quarter and Annual bases. There are 3 main types of Financial Statements : 1- Income Statement ( Profit and Loss Statement ) It’s a flow statement reports summarizing company's income, expenses, and profits ( revenue ) over a period of time. 2- Balance Sheet (Statement of Financial Position ) It’s a Status report summarizing company's Assets, liabilities and Equities which it include the statement of Retained Earnings at a specific point in time. The Balance Sheet Formula is : Assets = Liabilities + Equities 3- Cash Flows Statement ( The statement of changes in financial position ) The statement of cash flow is independent accounting method and its complement and integrate the information on the balance sheet and income statement. It’s a company’s liquid assets Statement which is summarizing company's cash flow activities ( inflows and outflows ) such as cash, cash
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Xacc/280 Week 5 Assignment
    • 749 Words
    • 3 Pages

    Xacc/280 Week 5 Assignment

    A Financial Statement can be defined as, “Summary report that shows how a firm has used the funds entrusted to it by its stockholders (shareholders) and lenders, and what is its current financial position” (Business Dictionary, 2011). The Financial information is required for various users to make an informed Decision. “The purpose of financial information is to provide inputs for decision making” (Kimmel, Weygandt, Kieso, 2009, Para 1, p. 6). There are four different parts covered in a Financial Statement; those are Balance Sheet, Income Statement, Retained Earnings Statement, and Statement of Cash flow. The assignment will elaborate the purpose of each statement and differentiate its utility for different…

    • 749 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    xacc 291 week 7
    • 391 Words
    • 2 Pages

    xacc 291 week 7

    The term cash flows refer to the receipts and payment of cash. A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents is known as a statement of cash flow. Similar to an income statement, a cash flow statement records a company’s performance over a period of time. Consistently, companies will disclose the cash arising are generally required to prepare a statement of cash flow in their annual reports because it contains vital information for lenders and investors who primarily make informed and economic decisions about the companies. Generally during a company’s accounting period their cash flow is categorized and divided into three sections which are: cash flow from operations, financing and investing. The primary reasons these transactions are catergorized and divided is so investors will understand what the transactions are related to and how each section paints a vivid picture of how the company is doing from both a cash standpoint and overall health. The statement of cash flow is very important for companies that are required to prepare and present their financial statement in accordance to with international accounting standards and international financial reporting standards.…

    • 391 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Ac550 Course Project
    • 579 Words
    • 3 Pages

    Ac550 Course Project

    To prepare a comprehensive balance sheet and Single-Step Income Statement presented in good form and derived from a list of various accounts. The amounts relative to each account will be given and the student will learn to determine whether an account is a balance sheet account or a temporary account that belongs to the income statement. The accounts will be comprised of all the various subgroupings in the balance sheet (Current Assets, Investment, Fixed Assets, Intangibles and Other Assets. As well as Current Liabilities, Long-term Liabilities and the Equity sections).Guidelines…

    • 579 Words
    • 3 Pages
    Good Essays
    Read More
  • Better Essays

    Acc 561 Financial Statements Differential
    • 910 Words
    • 4 Pages

    Acc 561 Financial Statements Differential

    Financial statements provide documentation of a company’s financial history for a set timeframe. One of the financial statement used by investors, creditors, and mangers is the balance sheet. The second statement used by accountant’s income statement, which is also important to shareholders. The third statement is the retained earnings statement, and the fourth financial statement is the statement of cash flows. Each financial statement has a different purpose and shows different aspects of the company’s finances. However, these financial statements are integrated and work together to provide shareholders financial information. This paper will defines the four financial statements while explaining the financial statement most suitable for either an investor, creditor, or management.…

    • 910 Words
    • 4 Pages
    Better Essays
    Read More
  • Powerful Essays

    Week 2 Lecture Notes Acct1501
    • 3629 Words
    • 15 Pages

    Week 2 Lecture Notes Acct1501

    Identify the components of financial statements • Describe the relationship between the balance sheet and the income statement • Understand the implications of the decision to record expenditure as an asset or as an expense • Understand the differences between cash profit and accrual profit Required Reading Trotman, Gibbins & Carson Chapter 2 AASB: Framework for Presentation of Financial Statements (downloadable from your course website or http://www.aasb.gov.au ) Session 1, 2013 2. Tutorial Questions – Week 3 Preparation Questions • • • DQ 2.1, 2.2 P2.3 Case 2A…

    • 3629 Words
    • 15 Pages
    Powerful Essays
    Read More
  • Good Essays

    ACCT 550 Week 1 homework
    • 473 Words
    • 2 Pages

    ACCT 550 Week 1 homework

    To prepare a comprehensive balance sheet and Single-Step Income Statement presented in good form and derived from a list of various accounts. The amounts relative to each account will be given and the student will learn to determine whether an account is a balance sheet account or a temporary account that belongs to the income statement. The accounts will be comprised of all the various subgroupings in the balance sheet (Current Assets, Investment, Fixed Assets, Intangibles and Other Assets. As well as Current Liabilities, Long-term Liabilities and the Equity sections).Guidelines…

    • 473 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    ACC 290 wk 1
    • 551 Words
    • 3 Pages

    ACC 290 wk 1

    This written essay will discuss the four basic financial statements used in accounting. It will describe the purpose of the four financial statements. How these statements would be useful to internal users, such as managers, and employees. How the external users, such as investors, and creditors would find these statements useful.…

    • 551 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Acc 561 Week 1 Guide
    • 285 Words
    • 2 Pages

    Acc 561 Week 1 Guide

    This course begins with a general overview of financial statements. Different financial statement users will have different needs for each of the financial statements. Each financial statement provides internal and external users with specific information, and each is like one piece of a jigsaw puzzle. People need all the pieces to get all the information to evaluate the true financial status of the organization.…

    • 285 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Acc 220 Financial Statement
    • 264 Words
    • 2 Pages

    Acc 220 Financial Statement

    * A balance sheet is summary of a company's financial condition at a specific point in time, including assets, liabilities and net worth. It allows the company to know what they have been paying for or what they owe out to people. An income statement is a report that tracks a company’s revenues, gross profits, operating income, and net worth. All businesses need to have revenue in order to establish a good foundation to have their business up and running. A retained earnings statement is the portion of net income not paid out to investors in the business as dividends. If the company earns a profit they have to decide whether or not to invest it or keep it as theirs and distribute it evenly throughout the others in the company. Statement of cash flows provides information about an entity's cash receipts and cash payments during a period. Cash flow statements classify cash receipts and payments according to whether they stem from operating, investing, or financing activities. Assets are any item or items of economic value owned by an individual or corporation, especially that which could be converted to cash. A liability is an obligation that legally binds an individual or company to settle a debt. Comparative statements are financial statements for different periods that allow the comparison of figures to illustrate trends in a company’s performance. Stockholder’s equity is the part of the balance sheet that represents the capital received from investors in exchange for stock donated capital and retained…

    • 264 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Acc291
    • 267 Words
    • 2 Pages

    Acc291

    Companies use a statement of cash flows because it shows where cash came from and how it was used. The other main financial reports only provide a limited insight into the cash transactions of the company. While the other main reports utilize the accrual accounting basis, the statement of cash flows changes the accrual basis using the direct or indirect method. The indirect method is primarily used, however both are acceptable under generally accepted accounting principles. The statement of cash flows is divided into three sections and shown in the report in the following order. Operating activities is reported first, followed by investing activities, and finally financing activities. Operating activities deals with each transaction that involves both revenues and expenses. This category is considered important because operating activities are the best predictor of a company’s ability to generate future cash. This obviously is important information for investors as well as creditors when evaluating a company’s ability to grow and move forward. Investors can make educated guesses regarding the future cash flows based on the statement of cash flows better than viewing the other financial reports that utilize the accrual accounting basis. Investing activities include the transactions to purchase, sell, or dispose of company property. Loans and debt collection are also included in the investing activities with company plant and equipment. Investors can view the statement of cash flows to see if the company has sufficient cash on hand to pay stockholder dividends and meet future demands. Finally, financing activities includes receiving cash from stockholders, buying back company stock, and paying dividends.…

    • 267 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Acc 2542 Syllabus
    • 4587 Words
    • 19 Pages

    Acc 2542 Syllabus

    in the lecture where the lecturer adds strong emphasis by repeating the same point or…

    • 4587 Words
    • 19 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Acc 561 Master Budget Paper
    • 566 Words
    • 3 Pages

    Acc 561 Master Budget Paper

    • The four financial statements share the same information in certain areas of the statement which leads to better understanding a company’s finances. For example, the income statement explains the net income (revenue-expense) and that number increase the ending retaining earning on the Statement of Retaining Earning Sheet. Furthermore, retaining earning is on the balance sheet which helps determining stockholders equity & total liabilities. The ending cash amount on the statement of cash flows gives the beginning cash balance on the balance sheet. This example show how all the financial statements relate to one another.…

    • 566 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Acc 280 Principles of Accounting Week 1 Ia Financial Statements
    • 877 Words
    • 4 Pages

    Acc 280 Principles of Accounting Week 1 Ia Financial Statements

    Understanding what is happening financially in the company insights provides the financial information system of accounting. One must have knowledge of numbers when working in accounting. The three basic activities in accounting are identifies, records, and communicates. The four financial statements are income statements, retained earnings statement, balance sheet, and statement of cash flow. Internal and external users are the groups that review financial information (Weygandt, 2008). The preparation of financial statements, are in an uncomplicated layout, easy to understand. Reporting financial statement accurately is important because if there is an error this can cause complications for the company or organization.…

    • 877 Words
    • 4 Pages
    Better Essays
    Read More
  • Better Essays

    Bus 630: Managerial Accounting
    • 2422 Words
    • 10 Pages

    Bus 630: Managerial Accounting

    The pros and cons of outsourcing varies by industry, size of organization, organizational structure, and many other components. The pros and cons are highlighted and the fall of Satyam to encompass a full range of accounting aspects. All size organizations outsource a portion of his or her business. Therefore, taking time to reflect on the points identified in this paper may enlighten or create ideas for consideration regarding outsourcing.…

    • 2422 Words
    • 10 Pages
    Better Essays
    Read More
  • Better Essays

    Acc 291 Week 4
    • 1112 Words
    • 5 Pages

    Acc 291 Week 4

    In any industry, have a clear picture of an organizations cash, and the flow of where it goes is an important part of a successful organization. Many organizations use different methods of accounting to view financial information. But some of the methods don’t provide certain information that is when the Cash Flow Statement comes into play. For example the balance sheet, income statement, and retained earnings statement only provide a limited amount of information regarding an organization cash flow (cash receipts and cash payments). For example, balance sheets will show the increase in property, plant, and equipment during a year. Although they do not show how the additions were financed or paid for. The income statement shows an organizations net income, it does not give a clue about the amount of cash generated by operating activities. Retained earnings statement shows cash dividends declared but not cash dividends that are paid during a year. What makes Cash Flow Statements so important is that they provide a detailed summary of where cash came from and how it was used compared to the other reports.…

    • 1112 Words
    • 5 Pages
    Better Essays
    Read More

Related Topics