Introduction Accounting Concepts and Principles These are rules and principles of accounting that are essential and should be followed by any organization in preparation of all accounts and financial statements. The following are accounting concepts and policies that must be applied in preparation of account statements‚ Entity Concept‚ according to this concept‚ the owner of the business or proprietor must be separate and distinct from the business or enterprise. Therefore business is treated as a separate
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making adjustments to net income by adding and subtracting the differences in revenue‚ expenses and credits which happen when transaction take place from one period to the next. Not all transaction involves cash items so some calculations have to be done when calculating cash flow from an operations standpoint. Because there are changes with account receivable from one period to the other it has to reflect on the cash flow statement because it affects the cash flow statement. When viewing the Eastman
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analysts and business press writers use accounting information‚ particularly earnings. The case is designed to give students “hands on” experience with complementary sources of information about Google’s performance—the formal audited financial statements‚ an earnings press release‚ pro forma earnings disclosure‚ and comparative stock charts. Google is a prime example of how good news is in the eye of the beholder! In Q4 2007‚ Google announced continued revenue growth and strong earnings. The press
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If we imagine about one question In which sector our business is booming most the answer would be certainly the banks. Bank includes all financial institutions‚ one of those principle activities is to take deposits and borrow with the objectives of lending and investing and which are with in the scope of banking or similar legislation. Bank represents a significant and influential sector of business worldwide. Most individuals and organizations make use of banks‚ either as depositor or borrowers
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FINANCIAL ANALYSIS (ACCT 411) PACKAGES LIMITED Group Members Introduction Page 3 Research Methodology Page 10 Analytical Adjustments Page 10 Ratio Analysis Page 15 Horizontal Analysis Page 21 Vertical Analysis Page 25 Cash Flow Statement Analysis Page 26 Recommendations Page 27 Limitations of Analysis Page 28 Work cited Page 29 Introduction We have chosen Packages Limited as the Company for the purposes of our analysis. We’ll be also analyzing Cherat Packaging
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years for the strategic planning workshop of senior managers. EEI’s managers were optimistic about the future‚ thus the forecast for the next three years should be guided by the growth in revenues‚ expenses‚ and income over the last four years – using the 1991 to 1994 financial statements‚ because the company experienced the business crisis prior to 1991 starting from 1986. It seemed proper to
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financial news service. He holds a Master of Business Administration from Kellogg Graduate School. Per: Hunkar Ozyasar‚ eHow Contributor‚ last updated September 17‚ 2011 Direct Method If the accountant prepares the cash flow statement by using the information in the income statement‚ she is using the direct method. Under such a scenario‚ she identifies and adds up all cash sales and collections of receivables from credit sales during previous periods. She subtracts all cash payments to arrive at the
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accounting period should be reckoned in the same period‚ irrespective of the fact whether these expenses have been paid in cash or not in that year. The same holds true for revenues‚ i.e.‚ revenues earned in a specific accounting period are construed as incomes of the same period‚ irrespective of their receipts. This concept is also known as the accrual theory of accounting or accrual accounting. This concept applies equally to revenues and expenses. In the accrual basis of accounting Revenue is recognized
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capitalization policy have on its financial statements? Ignore any potential tax effects. a. Assume that 60% of Microsoft’s research and development expenses were incurred after technological feasibility was established‚ that the average product life was two years‚ and that the company begins amortizing software costs at the beginning of the following year. Estimate the effect of capitalizing software costs on Microsoft’s fiscal 1997‚ 1998‚ and 1999 income statements and balance sheets. The decision involving
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June 28‚ 2012 FOR IMMEDIATE RELEASE RESEARCH IN MOTION REPORTS FIRST QUARTER FISCAL 2013 RESULTS Waterloo‚ ON – Research In Motion Limited (RIM) (Nasdaq: RIMM; TSX: RIM)‚ a world leader in the mobile communications market‚ today reported first quarter results for the three months ended June 2‚ 2012 (all figures in U.S. dollars and U.S. GAAP‚ except where otherwise indicated). Highlights: Cash‚ cash equivalents‚ short-term and long-term investments increased to $2.2 billion at the end of the first
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