the business to appraise the profitability as well as the solvency of the business. The three main financial statements that are prepared for the purpose of accounting information are as follows. Balance Sheet A balance sheet is the most important financial statement of a company. The balance sheet
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1. Explain the purpose and use of a profit and loss account: The purpose of the profit and loss account is to: Show whether a business has made a PROFIT or LOSS over a financial year. Describe how the profit or loss arose – e.g. categorising costs between "cost of sales" and operating costs 2. Explain why it is important for a business to prepare a Profit and loss account: Business keeps various types of financial record to monitor its performance and ensure that taxes are paid. These include profit
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• Exercise E13-5 • Exercise E13-6 • Exercise E13-9 The comparative balance sheets of Nike‚ Inc. are presented here. NIKE INC. Comparative Balance Sheets May 31 ($ in millions) Assets 2007 2006 Current assets $8‚076 $7‚346 Property‚ plant‚ and equipment (net) 1‚678 1‚658 Other assets 934 866 Total assets $10‚688 $9‚870 Liabilities and Stockholders’ Equity Current liabilities $2‚584 $2‚612 Long-term liabilities 1‚079 973 Stockholders’ equity 7‚025 6‚285 Total liabilities
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IAS - 1 Presentation of Financial Statements By: http://www.WorldGAAPInfo.com International Accounting Standard No 1 (IAS 1) Presentation of Financial Statements This revised Standard replaces IAS 1 (revised 1997) Presentation of Financial Statements and will apply for annual periods beginning on or after January 1‚ 2005. Earlier application is encouraged. By: http://www.WorldGAAPInfo.com Objective 1. The objective of this Standard is to lay the groundwork for the submission
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CHAPTER 5 BALANCE SHEET AND STATEMENT OF CASH FLOWS IFRS questions are available at the end of this chapter. TRUe-FALSE—Conceptual Answer No. Description F 1. Liquidity and solvency. T 2. Limitations of the balance sheet. T 3. Definition of financial flexibility. T 4. Long-term liability disclosures. F 5. Definitions of the balance sheet. F 6. Land held for speculation. T 7. Balance sheet format. F 8. Purpose of statement of cash flows. F 9. Statement of cash flows
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CHAPTER 5 BALANCE SHEET AND STATEMENT OF CASH FLOWS IFRS questions are available at the end of this chapter. TRUe-FALSE—Conceptual Answer No. Description F 1. Liquidity and solvency. T 2. Limitations of the balance sheet. T 3. Definition of financial flexibility. T 4. Long-term liability disclosures. T 5. Reporting restricted cash. F 6. Land held for speculation. T 7. Balance sheet format. F 8. Purpose of statement of cash flows. F 9. Statement of cash flows reporting. T 10. Financial
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dividends to stockholders. T Total liabilities on a balance sheet at the end of the year are $150‚000‚ retained earnings ‚ at the end of the year is $80‚000‚ net income for the year is $60‚000‚ common stock is $40‚000‚ and additional paid –in-capital is $20‚000. What amount of total assets whould be reported on the balance sheet at the end of the year? a. $290‚000 b. $270‚000 c. $205‚000 d. $15‚000 T The cash T-account has a beginning balance of $21‚000. During the year‚ $100‚000 was debited and
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these exercises: E13-5 The comparative balance sheets of Nike‚ Inc. are presented here. Complete the horizontal analysis of the balance sheet data for Nike using 2006 as a base. E13-6 Here are the comparative income statements of Winfrey Corporation. Complete the horizontal analysis of the income statement data for Winfrey Corporation using 2009 as a base E13-9 Armada Company has these comparative balance sheet data: Compute the following ratios at December
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MORTGAGE BACKED BOND (MBB) WHAT IS IT MBBs are the third asset securitization vehicles. They differ from pass-thru and CMOs in 2 key dimensions: 1. Pass thru’ and CMOs remove mortgages from bank’s balance sheets as forms of offbalance sheet securitization. 1. MBBs normally remain on the balance sheet 2. Pass thru’ and CMOs have a direct link between the cash flows on the underlying mortgages and the cash flows on the bond vehicles 2. For MBBs‚ there is no direct link between the cash flow on the
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References: Arnow‚ M.‚ Jr. & Xakellis‚ G. C. (2001). Making Your Balance Sheet Work for You. Retrieved from http://www.aafp.org/fpm/2001/0600/p27.html Baker‚ J. J.‚ & Baker‚ R. W. (2009). Healthcare finance. New York‚ NY: Jones & Bartlett Publishers. Brumley‚ S. (2015). Role of Financial Management in Health Care. Retrieved
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