True False 9. The trend in ratios is usually more useful than looking at a single year’s ratio. True False 10. The acid test ratio includes marketable securities but does not include accounts receivable. True False 11. Comparative financial statements show side-by-side financial data for two or more companies. True False 12. The quality of earnings tends to be higher for a company that uses straight-line depreciation and defers costs whenever possible than for a
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investment managers and held by one major financial institution under a custodial arrangement. 2. What is the amount and classification of any investment in securities reported on the balance sheet? Are unrealized gains or losses reported in the shareholder’s equity section? In the Balance sheet section‚ there is a Marketable Security $1‚281‚006 which is classified as Current Asset. There is an unrealized gain $6‚703 under Comprehensive Income in the shareholder’s equity section.
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the historical of the company and expected future forecast of the company. Normally‚ there are three financial statements should be used balance sheet‚ statement of income statement‚ and statement of cash flow. First‚ the balance sheet help to understand company annual accounts. In the United States‚ Companies usually have two common formats for their balance sheets: the "two-sided" format which assets on the left side and liabilities and owner’s equity on the right side. The other format is the assets
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CHAPTER 3: RESEARCH METHODOLOGY 3.0 Introduction 14 3.1 Data Collection Methods 14 3.2 Methodology 14 3.3 Data Analysis and Measurement 15 3.3.1 Common Size Financial Statement Analysis 15 3.3.2 Comparative Financial Statement Analysis 15 3.3.3 Ratio Analysis 15 3.3.3.1 Liquidity Ratio 16 3.3.3.2 Leverage Ratio 17 3.3.3.3 Activity Ratio 18 3.3.3.4 Profitability Ratio 18
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Credit analysis is the method by which one calculates the creditworthiness of a business or organization. In other words‚ It is the evaluation of the ability of a company to honor it financial obligations. The audited financial statements of a large company might be analyzed when it issues or has issued bonds. Or‚ a bank may analyze the financial statements of a small business before making or renewing a commercial loan. The term refers to either case‚ whether the business is large or small. Credit
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FINANCIAL PERFORMANCE OF OSWAL WOOLEN MILLS LTD. A PROJECT REPORT Submitted by: Soni kalsi In partial fulfillment of requirement for the degree of MASTER OF BUSINESS ADMINISTRATION (SUMMER TRAINING) GURU NANAK DEV ENGINEERING COLLEGE (PUNJAB TECHNICAL UNIVERSITY‚ JALANDHAR) JUNE-JULY 2011 ACKNOWLEDGEMENT Behind this successful undertaking is the blessing and guidance of many. This formal piece of acknowledgement may not be sufficient to express my feelings
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What are the potential problems and limitations of financial ratio analysis? ’1 ’ ’ ’Limitations of financial ratio analysis ’ ’ ’ ’ ’ # Many ratios are calculated on the basis of the balance-sheet figures. These figures are as on the balance-sheet date only and may not be indicative of the year-round position. # 2 Comparing the ratios with past trends and with competitors may not give correct picture as the figures may not be easily comparable due to the difference in accounting policies‚ accounting
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The analysis of financial position and performance of Nick Scali Limited and Fantastic Holdings Limited during fiscal year 2010 and 2009 are summarized as the following: Horizontal Analysis The horizontal analysis comparative income statements show a percentage change from doing operation of two companies are Nick Scali and Fantastic Holdings Limited. Gross profits of two companies are increased from year 2009 to 2010 by 34.28% and 5.90% respectively. It can be said that both company had increased
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and stockholders’ equity at a specific date. d. presents the revenues and expenses for a specific period of time. 6. Which of the following financial statements is concerned with the company at a point in time? (A) a. Balance sheet. b. Income statement. c. Retained Earnings statement. d. Statement of cash flows. 7. Payments to stockholders are called (c)
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lessor into two parts; reduction of lease liability and finance charge or interest. IAS 17 requires the finance charge to be allocated so as to produce a constant periodic rate of interest (interest rate implicit in the lease) on the remaining balance sheet liability. (Refer to appendix A for journal entries Capital lease-Lessor The lessor is a finance provider‚ and therefore records lease receivables as the debit side of the entry. The lease receivable is the net investment in the lease‚ which
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