Financial Statements Tonjes Bolden ACC/280 May 31‚ 2011 Financial Statements Accounting defines as a systematic report and analysis of an organization’s financial transactions
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Financial Statements: The Starting point In the Study Of accounting The principal means of reporting general-purpose financial information to persons outside a business organization is a set of accounting reports called financial statements. The persons receiving these reports are termed the users of the financial statements. A set of financial statements consists of four related accounting reports that summarize in a few pages the financial resources
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Financial Statements XACC/290 January 12‚ 2014 Melissa Drayton Financial Statements There are four basic financial statements: balance sheet‚ income statement‚ retained earnings statement‚ and statement of cash flows. These financial statements would include an overview of the assets‚ liabilities‚ expenses‚ and revenues of the business. Financial statements are useful not only to internal user; such as managers and employees‚ but also to external users; such as investors and creditors to
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Financial Statements Robert Greene Phoenix University Principles of Accounting I 290 Dr. Zeneo Williams June 18‚ 2013 Financial Statements To understand finances‚ the ability to decipher the data available must be attained. One of the tools used to do this is through financial statements. There are four prevalent statements used to achieve this. They are the balance sheet‚ income statement‚ statement of retained earnings‚ and statement of cash flows. These statements are
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Financial Statement Companies use several tools such as a balance sheet to make sound business decisions. A balance sheet is a quantitative summary of a company ’s financial condition at a specific point in time‚ including assets‚ liabilities and net worth. The first part of a balance sheet shows all the productive assets a company owns‚ and the second part shows all the financing methods (such as liabilities and shareholders ’ equity) Also‚ called statement of condition.
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CHAPTER-I FINANCIAL STATEMENTS LEARNING OBJECTIVES After studying this chapter‚ you will be able to: • Explain the meaning of financial statements of a company; • Describe the form and content of balance sheet of a company; • Prepare the Balance Sheet of a company as per Schedule VI Part I of the Companies Act 1956. • Know the major headings under which the various assets and liabilities can be shown. • Explain the meaning‚ objectives and limitations of analysis using accounting
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CASE 2 Cash Flow Estimation and Risk Analysis Robert Montoya‚ Inc. Robert Montoya‚ Inc.‚ is a leading producer of wine in the United States. The firm was founded in 1960 by Robert Montoya‚ an Air Force veteran who had spent several years in France both before and after World War II. This experience convinced him that California could produce wines that were as good as or better than the best France had to offer. Originally‚ Robert Montoya sold his wine to wholesalers for distribution
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Financial Statements Financial statements are records of relative financial information of organizations that are highly valuable to both internal and external users of that organization. The following four basic financial statements constitute the foundation of accounting: * Balance sheet * Income statement * Retained earnings statement * Statement of cash flows Purpose of the Financial Statements The balance sheet shows a clear picture of the organization’s financial
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Analysis of Financial Statements After reading this chapter‚ students should be able to: Explain why ratio analysis is usually the first step in the analysis of a company’s financial statements. List the five groups of ratios‚ specify which ratios belong in each group‚ and explain what information each group gives us about the firm’s financial position. State what trend analysis is‚ and why it is important. Describe how the Du Pont chart is used‚ and how it may be modified to include
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True the objective of financial statements emphasizes a stewardship approach for reporting financial information It is False the purpose of the objective of financial reporting is to prepare a balance sheet‚ an income statement‚ a statement of cash flows‚ and a statement of owners’ or stockholders’ equity. It is False because they are generally shorter‚ FASB interpretations are subject to less due process‚ compared to FASB standards. It is True the objective of financial reporting uses an entity
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