Owners • Owners are typically the most interested user of financial statements. Not only do owners have an interest in profits‚ but also in the amount of money they retain for personal income. This information comes from the income statement. Owners want to know how much capital the business consumed in order to generate sales revenue. Lenders • Lenders have an interest in both a company’s profit and cash flow. These users may have given loans to the business. Companies with an inability to repay
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Financial Statements Paper John Doe ACC/290 January 3‚ 2013 Introduction In this paper it will go through: Identify the four basic financial statements‚ describe the purpose of each of the four financial statements‚ discuss how the financial statements would be useful to internal users such as managers and employees‚ and discuss how the financial statements would be useful to external users such as investors and creditors. Identify the
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The importance of financial statements in a business is great. There are several difference reasons for a business to need financial statements. Yet first‚ financial statements need to be explained in order to know how they are used. Financial statements usually present the picture of the financial health of a given entity. It is also critical that a business comes up with accurate financial statements‚ not only for their record keeping for for the purpose of satisfying external reporting expectations
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and benefits 92‚460 Other variable production costs Total annual production costs $422‚460 Annual cost to purchase cans $495‚000 Part 1 Cash flows over the life of the project Before Tax After Tax Item Amount Amount Annual cash savings $72‚540 0.65 $47‚151 Tax savings due to depreciation 32‚000 0.35 $11‚200 Total annual cash flow $58‚351 Part 2 Payback
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CHAPTER 1 Ethics & ethical reasoning Ethics as a set of guidance/principles/norms which shows we how should we act‚ how should we choose‚ how should we live. Argument: a group of statements (premises: basis of conclusion) which are claimed to provide support/reasons for the other statement 3 kinds of arguments Deductive argument: premises are clamed to support the conclusion in such a way that it is impossible for the premises to be true‚ the conclusion false. Conclusion is claimed to follow
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FINANCIAL STATEMENT ANALYSIS PROJECT Comparison between Apple Inc. and Dell Inc. Accounting and Financial Analysis Spring 2013 Done by: Table of Contents: * Introduction * Horizontal Analysis * Significant Percentages * Ratios * Inventory and Depreciation * Liabilities * Cash Flow Analysis * Audit Report Analysis * Investor Analysis * Conclusion Introduction Apple Inc. (Apple)‚ incorporated on January 3‚ 1977‚ Apple ’s headquarter is
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a) Five Users of Company Financial Statements There are various internal and external users of company financial statements. Internal users include employees‚ directors and shareholders‚ while external users include the government‚ the public‚ suppliers and creditors. 1. Investors Both current and potential shareholders/investors are the providers of capital in a company. They are interested in information that will help them determine whether to invest in the company. They are comparing different
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1. Substantive law vs Procedural law a. Substantive law: defines individual rights & duties IE K law‚ employment law‚ criminal law b. Procedural law: laws that deliberate methods of enforcing the rights established by Substantive law IE litigation‚ some parts of process of Family law 2. Criminal vs Civil a. Criminal: govt vs someone for a crime designed to protect the society as a whole b. Civil: individual protects individual rights & enforces individual duties 3. Cause of Action (COA)
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Working with Financial Statements Accounting is the heart and soul of executing a successful business. Accounting is used to provide record for all items that are paid and received for a business over any period of time. Within the purpose of accounting lies the need to provide continuity and sustainability within a business‚ without it a business will not thrive. The information obtained is kept on record‚ in order to give insight to upper management on data concerning the daily revenue and expenses
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these terms in your own words. Sarbanes-Oxley Act (SOX): This was a regulation passed by the government to prevent immoral corporate behavior. Balance sheet: A balance sheet is a financial statement that shows the assets‚ liabilities and stockholder’s equity. Income Statement: An income statement is a financial report that shows the net income or net loss by reporting the revenues and expenses. External user: External users of accounting information are investors or bankers that need accounting
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