Four Basic Financial Statements In the field of accounting‚ the basis of all decisions comes from the calculating and reporting of financial statements. Without these statements‚ a company may lack in organization skills which could lead to huge errors being made. These huge errors could cost a company millions of dollars. Knowing that‚ it is important to make sure that these reports are done accurately and in a timely fashion so that mistakes do not become catastrophes. Income Statement The Income
Premium Income statement Balance sheet Asset
Financial Statement Restatement Paper A number of companies have faced restatements because of errors in their financial statements (Kieso‚ Weygandt‚ & Waterfield‚ 2007). Overstock.com is an online retailer offering closeout and discount brand and non-brand name merchandise. They also operate as part of their website an online auctions business- a marketplace for the buying and selling goods and services. In February 2006‚ the company restated financial reports from Q1 2002 to Q3 2005 due
Premium Generally Accepted Accounting Principles Income statement Financial statements
Interest/Sales * Sales/Assets * Assets/Equity * Earnings before interest/Net Income b) Net income*asset turnover*tax rate c) Return on Assets (ROA)*financial leverage d) Both a) and c) 2. Which of the following is true a) Return on Assets is influenced by financing activities b) ROE is not affected by financial structure c) Profit margin is a measure of asset efficiency d) None of the above 3. Assume that cost of goods sold for a company consists
Premium Investment Generally Accepted Accounting Principles Net present value
Home Depot is one of the largest home repair retailers in my area. I will highlight their 2015 financial statement‚ and give examples of how the statement could be useful to their business leaders‚ as well as outside venders. 2015 financial highlights. (n.d.). In fiscal year 2015‚ we grew sales for the sixth consecutive year‚ with positive sales growth in all three U.S. Divisions‚ Canada and Mexico. Comparable store sales were up 5.6 percent; total sales were up 6.4 percent; and diluted earnings
Premium Balance sheet Generally Accepted Accounting Principles Income statement
Chapter 1: Overview of Financial Statement Analysis Sample Multiple Choice Questions 1. Which of the following is likely to be the most informative source if you were interested in a company’s business plan or strategy? A) auditor’s letter B) management discussion and analysis C) proxy statement D) Footnotes Answer: B 2. Which of the following would not be considered a source of financing? A) notes receivable B) common stockholders’ equity C) retained earnings
Premium Financial ratios Balance sheet Generally Accepted Accounting Principles
understand the purpose behind the presentation of financial statements‚ we must figure out why they are important. A company’s financial statements provide various financial information that investors and creditors use to evaluate a company’s financial performance. Financial statements are also important to a company’s managers because by publishing financial statements‚ management can communicate with interested outside parties. A company’s financial conditions are of a major concern to investors and
Premium Financial statements Generally Accepted Accounting Principles Balance sheet
Education Volume 6‚ 2009‚ 83-96 A FINANCIAL STATEMENT ANALYSIS PROJECT FOR INTRODUCTORY FINANCIAL ACCOUNTING Marilyn B. Misch Business Administration Division Pepperdine University Malibu‚ California USA Carolyn A. Galantine Business Administration Division Pepperdine University Malibu‚ California USA ABSTRACT This paper describes a financial statement analysis project useful in both preparerbased and user-based introductory courses in financial accounting. The project requires students
Premium Financial statements Income statement Balance sheet
OPERATING & FINANCIAL PERFORMANCE OF THE COMPANY PROFITABILITY RATIOS * Gross Profit marging Gross ProfitSales×100% 2010/2011 2009/2010 = (171‚325‚029/435‚759‚776) *100 = (59‚257‚454/327‚593‚843)*100 = 39.3164% = 18.0887% * Profit Margin = NPBT * 100 Sales 2011/2012 2010/2011 = (41‚896‚089/ 435‚759‚776)
Premium Balance sheet Investment Interest
debentures issued by the company | | | 5. The main role of the trustee for debenture holders is to protect the interests of: | shareholders | | debenture holders | | directors | | auditors | | | 6. The main functions of the Financial Reporting Council include: I. overseeing the process for the setting of accounting standards of the AASB II. determining the AASB’s broad strategic direction III. monitoring and reviewing the level of funding for the AASB IV. directing the AASB
Premium Financial statements Balance sheet Corporation
and the Financial Statement When faced with a lawsuit you have to know whether or not to consider contingencies. According to Schroeder‚ Clark‚ and Cathey (2005) a contingency is a future event that could possibly have an impact on the firm. There are four different ways a contingency should come to view and they are income tax disputes‚ notes receivable discounted‚ accommodation endorsements‚ and what this company is dealing with a pending lawsuit. When a gain is possible‚ the financial statement
Premium Balance sheet Financial Accounting Standards Board Standardization