The following are three online journals of Historical Cost and Fair Value: 1. Summary of HISTORIC COST VERSUS FAIR VALUE In accounting historical cost is the original or nominal amount of money paid for asset rather than inflation adjusted price. In other words it is the resource given up or a liability incurred to acquire an asset. The historical cost principle states that the asset should be reported at it cost (cash or cash equivalent amount) at the time of exchange and should include all
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ANALYSIS Comparative Financial Analysis Author Assuming the company does not invest in the new product line; prepare forecasted income statements and balance sheets at year-end 2010‚ 2011‚ and 2012. Based on these forecasts‚ estimate Flash’s required external financing: in this case all required external financing takes the form of additional notes payable from its commercial bank‚ for the same period. Using the assumptions given in the case‚ all elements of income statement and balance sheet can
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Chapter 1: Introduction to accounting Multiple Choice 1. Which of these is a decision relevant to the accounting function of an entity? a. Whether debts can be repaid b. Finding the most cost effective way to produce goods c. The investment prospects of the entity d. None of the above e. All of the above 2. Under the Framework describes the qualitative characteristic of relevance as: a. information that is of value to users in decision making. b. information that can be classified. c.
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GOVAN’S CATERING SUPPLIES 1. Comment on the performance of the company. 2. Why has this profitable company had to borrow so much money from the bank? 3. What overdraft would Govan expect to have if he continues with “business as usual”? 4. Should Govan take advantage of the 2½% settlement terms offered by his suppliers? Explain. 5. As Govan’s financial adviser‚ would you encourage him to go ahead or reconsider his anticipated expansion and his plans for its financing
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income statement‚ balance sheet‚ and cash flow. A comparative analysis will be conducted to that of its top competitors. Financial Health In any organization whether it is a large global corporation or a small business‚ financial management is very important to keep a checks and balance of the organization in order to maintain a stable‚ profitable business. To determine the financial health of a business‚ you must look at three key financial statements: the balance sheet‚ income statement
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the company. This project report gives practical knowledge of financial analysis‚ which is prepared by me on financial analysis of ONGC Ltd. for two years with interpretation. It covers financial Ratio Analysis‚ Common Size statement and Comparative Analysis. This ratio is made in order to analyze financial condition of ONGC Ltd. including tables as and when required. JITESH CHUDASAMA
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particular item on a financial statement such as sales or cost of goods sold behaves over time. Vertical analysis involves analysis of items on an income statement or balance sheet for a single period. In vertical analysis of the income statement‚ all items are typically stated as a percentage of sales. In vertical analysis of the balance sheet‚ all items are typically stated as a percentage of total assets. 16-2 By looking at trends‚ an analyst hopes to get some idea of whether a situation is improving
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CHAPTER 4 Balance Sheet ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics 1. Disclosure principles‚ uses of the balance sheet‚ financial flexibility. Classification of items in the balance sheet and other financial statements. Preparation of balance sheet; issues of format‚ terminology‚ and valuation. Subsequent events. Questions 1‚ 2‚ 3‚ 5‚ 6‚ 7‚ 10‚ 18‚ 21‚ 24‚ 25 11‚ 12‚ 13‚ 14‚ 15‚ 16‚ 18‚ 19 4‚ 7‚ 8‚ 9‚ 16‚ 17‚ 20‚ 23‚ 26 22 1 Brief Exercises Exercises Problems 2. 1‚ 2‚ 3‚ 4‚ 5‚ 6‚
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Office Depot‚ Inc. ………………………………..……3 Case Objectives…….……………………………………………..………………..…….4 Financial Analysis Common-Size Vertical Analysis & Comparative Horizontal Analysis Common-Size Balance Sheet ….…………….……….……………..….……….4 Common-Size Consolidated Statement of Income…………….………..……. 5 Comparative Balance Sheet ….…………….……………………………..…….6 Comparative Consolidated Statement of Income……..……..……………….. 7 Financial Ratio Analysis Liquidity Ratios….………..………………………………………………..…….8 Long-Term Debt –
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principles Comprehensive income Alternative accounting methods Pro forma income Improper recognition Price-earnings ratio Liquidity ratios Solvency ratios Profitability ratios Horizontal analysis Vertical analysis Comparative Analysis Ratio Analysis Quality of Earnings Financial Analysis: The Big Picture13-5 SO 2 Indicate how irregular items are presented. Sustainable Income Sustainable Income - Net income adjusted for irregular items. Irregular items are
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