Abstract In this paper I will identify the four basic financial statements‚ discuss how they are interrelated with each other‚ and why they are useful to managers‚ investors‚ creditors‚ and employees. BALANCE SHEET A balance sheet provides detailed information about a company’s assets‚ liabilities and shareholders’ equity. Assets are things that a company owns that have value. This usually means they can either be sold or used by the company to make products or provide services that can be
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1) Explain the difference between the attorney-client privilege and the accountant-client privilege. Why is this important distinction? Why do you think that the law doesn’t provide the same level of privilege for accountants as it does for attorneys? • The different between the attorney-client privilege and the accountant-client privilege is the communication. The attorney is protected by law‚ and the accountant is protected by state statute. They both are required to have the permission of the
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Do you believe in ghosts? Ghosts‚ a hypothetical subject widely opened to the skepticism of us humans. In reference to Wikipedia‚ the definition of ghosts is “a ghost is the soul or spirit of a deceased person or animal that can appear‚ in visible form or other manifestation‚ to the living.” In my opinion‚ ghosts do exist. Of course they do. The existence of ghosts can be proved by unexplainable paranormal activities. Nevertheless‚ they have a strong connection with religions‚ explaining the
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by INE 1) If we divide users of ratios into short term lenders‚ long term lenders‚ and stockholders‚ which ratios would each group be most interested I‚ and for what reasons? • Short term lenders o Will be most interested in the firm’s ability to repay debt so they would be interested in the liquidity ratios‚ Current ratio and Quick ratio. • Long term lenders o Will be most interested in ▪ Debt to total assets but also in
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Introduction The importance off skepticism in performing audits has been recognized from the time the very first auditing standard was implemented (Fullerton and Durtschi‚ 2012). The recent financial crises and audit failures have caused the profession to reassess and emphasise the importance of skepticism during an audit engagement‚ ensuring that auditors increase their level of skepticism (Fullerton and Durtschi‚ 2012). Auditors are now asked to expand their skeptical perspective to the level
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Composition: 3. Does school prepare you for life? The school have a wide range of subjects from maths to geography. All of these require the students to learn‚ memorise‚ and understand and to be tested. In addition‚ people might not see it but school builds you like a citizen and most important helps you to develop your character and personality. So‚ indeed school prepare you for life. Firstly‚ school teach us self-discipline. This is achieved by the need to fulfil the required timetables and schedule
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The analysis of financial information refers to the process of the critical examination of the financial information contained in the financial statements in order to understand and make the decisions regarding the operations of the firm. There are four kinds of analysis namely; external analysis‚ internal analysis‚ horizontal analysis and vertical analysis. The external analysis is done by outsiders who do not have access to the detailed internal accounting records of the business firm. When it
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he wrote a book explaining the secrets of reaching success. I personally became very motivated after listening to his speech and this blog would include my opinion about his speech and how it is motivational. I will explain the techniques he used to connect with the listener and to be able to move them to going after their goals. The register of this blog would be informal but not slang. The reason for this register is because of the targeted audiences which are the people who are in search of motivation
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collection of audit evidence? The risk assessment process happens at the very beginning of the engagement and is to determine the level of risk present in the company. The risk assessment phase is when the auditor assess the client’s situation‚ conducts an independence threat analysis and decides whether to accept the client or not. The risk assessment is influenced by various factors such as the degree to which external users will rely on the audited statements‚ the company’s financial position (liquidity)
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Financial statements‚ also known as financial reports‚ record the financial activities of a business in short and long term. The four financial statements are: balance sheet‚ income statement‚ statement of retained earnings‚ and statement of cash flows. A balance sheet reports the assets‚ liabilities‚ and net equity on a company. An income statement reports income‚ expenses‚ and profits on a company. A statement of retained earnings shows a company ’s changed retained earnings. The statement
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