Presentation 4 What can you find from a financial statement? Financial statement ate meant to present the financial information of the entity and for readers. Financial statement for businesses usually include income statement‚ balance sheet ‚ statement of retained earnings and cash flows are well as other possible statements. Income Statement A financial statement that measures a company’s financial performance over a specific accounting period. Financial performance is assessed by giving
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Standards may lead to distortion of information in the financial statements. 4.2 Types of Financial Statements Generally‚ most business is required to prepare a set of the following financial statements : Trading‚ Profit and Loss Account Balance Sheet 4.3 Trading‚ Profit and Loss Account The Trading‚ Profit and Loss Account shows the profitability of the business at the end of its financial accounting period. The income earned is matched with the cost and expenses incurred during the period
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accounting world there are several financial statements but the four main financial statements that are universally understood and prepared for most publically traded companies and many small and medium sized businesses are the income statement‚ the balance sheet‚ the statement of cash flows‚ and the statement of retained earnings (sometimes referred to as shareholders’ equity). A fundamental ability to properly interpret the information these statements contain allows internal and external users to make
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periodic inventory system. Determine the inventory balance Altira would report in its August 31‚ 2011‚ balance sheet and the cost of goods sold it would report in its August 2011 income statement using each of the following cost flow methods: 1. First-in‚ first-out (FIFO) 2. Last-in‚ last-out (LIFO) 3. Average cost E8-14 Altira uses a perpetual inventory system. Determine the inventory balance Altira would report in its August 31‚ 2011‚ balance sheet and the cost of goods sold it would report in
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changing one affects other statements‚ and the importance to understand the relationship between the statements. Financial statements are demonstrated in four different financial statements‚ which are balance sheet‚ income statement‚ retained earnings‚ and statement of cash flows. A balance sheet illustrates a financial picture at a point of time of what a business owns‚ which are the assets and what it owes‚ which are the liabilities. The income statement portrays how well a business performed
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Team A Week One Reflection ACC/422 Monday‚ April 8‚ 2013 Lisa A. Foy Learning Team A Week One Reflection The object of the reflection for this week is to discuss the objectives for Week One and their relation to the importance of the balance sheet to internal and external users. The objectives discussed by Learning Team A are the components of cash and cash equivalents‚ and the comparison and contrast of different inventory cost flow assumptions and how they are valued. The internal users
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preparing financial statements. Solution: Introduction to Financial Statements One of the steps included in the accounting cycle is the preparation of the principal financial statements. They are the Income Statement and the Balance Sheet. These financial statements are a means by which the information accumulated and processed in financial accounting is periodically communicated to the users. Once the worksheet is completed‚ it is easy to prepare the financial statements as the
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Balance Sheets: Assets: Any thing that a company owns are known as assets‚ they are further clasfied in Current assets and Fixed assets. Current assets are those assets which can be easily liquidated and have a shorter life as compared to fixed assets‚ Account receivable‚ cash and cash equlivents ‚inventory are some examples of current assets. • Cash and cash equlivents: A specific thing within the sense of balance sheet of which accounts the worth of a business’s possessions which
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strategy for increasing the average amount per customer transaction. Home Depot’s balance sheet shows that the company has decreased its total current liabilities and total long-term liabilities. However‚ the balance sheet does show a decrease in total assets‚ with a significant decrease in construction in progress. The net worth of a company is important to the company and its investors. The balance sheet is important because it provides this information to users of the financial statements
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Less-than-Wholly-Owned Subsidiaries with No Differential P3-33 (Page 144-145) Consolidated Worksheet and Balance Sheet on the Acquisition Date (Equity Method) Peanut Company acquired 90 percent of Snoopy Company’s outstanding common stock for $270‚000 on January 1‚ 20X8‚ when the book value of Snoopy’s net assets was equal to $300‚000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of January 1‚ 20X8‚ are as follows: Required Prepare the journal
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