owner or owners. 2. The four basic financial statements include the balance sheet‚ income statement‚ statement of retained earnings and statement of cash flows. 3. A balance sheet covers a period of time‚ such as a month or year. 4. The income statement shows the financial position of a business on a specific date. Chapter 2 5. Debit means the right-hand side of any account. 6. In a double-entry accounting system‚ total amount debited must always
Premium Generally Accepted Accounting Principles Balance sheet Income statement
E1-1 Urlacher Company performs the following accounting tasks during the year. Communicates__Analyzing and interpreting information. Records__Classifying economic events. Communicates__Explaining uses‚ meaning‚ and limitations of data. Records__Keeping a systematic chronological diary of events. Records__Measuring events in dollars and cents. Communicates__Preparing accounting reports. Communicates__Reporting information in a standard format. Identifies Identifies_Selecting economic activities
Premium Management Business Finance
Chapter 1: Uses of Accounting Information and the Financial Statements TRUE/FALSE 1. The intentional preparation of misleading financial statements is referred to as fraudulent financial reporting. ANS: T PTS: 1 OBJ: LO1 NAT: AACSB correlation: ethics LOC: Learning Type: Recall KEY: ethical reporting 2. Fraudulent financial reporting can result from the misapplication of accounting principles. ANS: T PTS: 1 OBJ: LO1 NAT: AACSB correlation: ethics LOC: Learning Type: Recall KEY:
Premium Finance Fraud Generally Accepted Accounting Principles
classified as: 1) Financial assets at FV thru PL - ownership of less than 20% with 2) Financial assets at FV thru OCI no significant influence; at FV 3) Investment in associate - ownership of 20% to 50% with significant influence; use equity method 4) Investment in subsidiaries – ownership of more than 50% with control over the investee; consolidated FS (to be discussed in FINACC 3) Financial Assets at Fair Value: 1) Financial assets at FV thru
Premium 1966 1970 1967
> Capex? Is CFO > Capex + Dividends? If CFO < Capex + Dividends‚ how did the company finance Capex + Dividends? Trend in Net Income Trend in CFO Trend in Capex Trend in major working capital accounts Overall assessment of the financial strength of the company CFO = Cash flow from operating activities; NI = Net Income; Capex = Capital expenditures‚ i.e. investments into long-lived assets Major working capital accounts: Accounts Receivable‚ Inventory‚ Accounts Payable Beta
Premium Generally Accepted Accounting Principles Accounts receivable
Chapter 1 Financial Statements and Business Decisions EXERCISES E1–2 Req. 1 READ MORE STORE Balance Sheet As at December 31‚ 2008 |ASSETS | |LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | |Liabilities | | |Cash |$ 48‚900
Premium Balance sheet Generally Accepted Accounting Principles Income statement
THE EFFECTS OF ACCOUNTING CONCEPTS ON FINANCIAL STATEMENT 5.1 ENTITY CONCEPT The first accounting concept is entity concept. These concept shows accounts are kept for entities and not the people who own or run the company. Even in proprietorships and partnerships‚ the accounts for the business must be kept separate from those of the owners. This is because what whatever amount the company owes to others is not the liabilities of the owners. The maximum amount that the owner is going to lose
Premium Generally Accepted Accounting Principles Balance sheet Depreciation
investments or capital of the firm and not only in relation to sales. Return on capital employed ratio measures the efficiency with which the investment made by shareholders and creditors is used in the business. Managers use this ratio for various financial decisions. It is a ratio of overall profitability and a higher ratio is‚ therefor‚ better. To see whether the business has improved its profitability or not‚ the ratio can be calculated for a number of years. Return on equity (ROE) is widely
Premium Balance sheet Asset Generally Accepted Accounting Principles
introduction to finical accounting. For me‚ this is the first time I had chance to learn this subject‚ before that I just heard some information about IFA by reading the FT newspaper and watching the news. When I start learning that‚ this subject gives me the impression that it is difficult to understand. During the past few months‚ I can say I already mastered some of the skills in IFA. I can still remember the first lecture I had learned was the definition of the “Accounting Equation”‚ I can conclude
Premium Balance sheet Generally Accepted Accounting Principles Asset
410 Instructor’s Manual Financial Accounting and Reporting Twelfth edition Barry Elliott Jamie Elliott For further instructor material please visit: www.pearsoned.co.uk/elliott-elliott ISBN: 978-0-273-71271-8 ( Pearson Education Limited 2008 Lecturers adopting the main text are permitted to download and photocopy the manual as required. [pic] Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies
Premium Balance sheet Generally Accepted Accounting Principles Cash flow