Financial Accounting Summary Financial Accounting – Summary Notes Financial Accounting – Summary Notes 1 Financial Statement Basics 3 Understanding of the 3 financial statements – (balance sheet‚ income statement and statement of cash flows). What does each financial statement represent? 3 What is the structure of each statement? 3 What is the link between the three statements? 4 Understanding of the basic mechanics of financial accounting – (debits‚ credits‚ transaction journal entries‚ adjusting
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Management observes that for the current year the second project will result in smaller earnings reported to shareholders than the first. How might management’s observation influence its choice between the two investment projects? Ans: Sometimes‚ because of the conservatism of financial accounting‚ expenditures that are "investments" are not capitalized‚ but are written off currently‚ depressing current earnings but boosting future earnings. Such a phenomenon may well influence management to
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1.4 How do an organization’s business processes and lines of business affect the design of its AIS? Give several examples of how differences among organizations are reflected in their AIS. An organization’s AIS must reflect its business processes and its line of business. For example: * Manufacturing companies will need a set of procedures and documents for the production cycle; non-manufacturing companies do not. * Government agencies need procedures to track
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Target Company Selection Process The target company we decided on for our financial analysis is General Electric. At first we were looking at Starbucks‚ as it is a rapidly growing multinational corporation‚ but after some research we discovered that the earnings per share growth of Starbucks is 40.2%. Therefore Starbucks did not meet the requirement set at 50% EPS growth to be considered a truly “rapidly growing company”. We then continued our research and were able to find that General Electric
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Financial Analysis and Interpretation | Kier Group Plc vs. Barratt Developments Plc | | This report is about the financial analysis and interpretation of two construction companies. Analysis and comparison is based upon 4 broad areas: financial performance‚ financial position‚ corporate governance and corporate social and environmental reporting. | | Mr Gajender‚ Student ID- 1025087 | 3/14/2013 | Word Count- 4‚116 | Table of Contents 1. Introduction4 1.1 Introduction to Companies4
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this code. One of the elements that many believe distinguishes a profession from other occupations is acceptance by it members of a responsibility for the interest of those it serves. . Accounting ethics is a field of professional ethics which pertains specifically to accounting. For the public to rely on the information provided there must be a level of confidence in the knowledge and behavior of accountants. The nature of the accountants’ work puts them in a special position of trust in relation to
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1. a) Net Income = 135‚750$ b) OCF = 155‚000$ 2. a) Equity Value = Net fixed assets – long-term liabilities 2006: $3600 2007: $3240 b) Net working capital = (current asset– current liabilities year 1) Change = (CA-CL of years 1) – (CA-CL of year 2) = 972-727 = 245 3. Common Size Income Statement: Sales/Revenue = 100% Cost of Goods Sold = 65.3% Depreciation = 13% Earnings before interest and taxes = 21.64% Interest Paid = 16.32% Taxable income = 53.25% Taxes (34%) = 1.8%
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Accounting plays an important role in the life of organizations. There are several types of accounting such as financial‚ management and governmental accounting‚ taxation‚ audit. These types are usually focusing on different types of users that are interested in different types of information. In this essay I will examine the differences between financial accounting and management accounting. The basic difference between financial and management accounting is their target group. Management accounting
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Financial accounting is the only branch of accounting and it is not perfect. There are large numbers of limitations which open new way to use other tools of accounting. To know what are the main limitations of financial accounting. It is very necessary for accountants. Accountants are often blind to these limitations. So‚ I am covering its limitation a lot of ground. Read below and understand:- Net effect of transactions are recorded in financial accounting which has happened in past. These
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benefit ANSWER D Deducted from equity‚ net of related income tax benefit Question # 2 End 45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 The following information pertains to Hopson Co.’s pension plan: Projected benefit obligation at 1/1/13 $72‚000 Assumed discount rate 10% Service costs for 2013 $28‚000 Pension benefits paid during 2013 $15‚000 If no change in actuarial estimates occurred during 2013‚ Hopson’s
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