Examining Financial Statements - Landry ’s Restaurants Financial statement users around the globe use financial statements to evaluate the performance of companies (Fundamentals of Financial Accounting‚ 2006). In order to locate a company’s reported assets‚ liabilities‚ expenses and revenues‚ statement users rely on four types of financial statements. The four financial statements include: Balance Sheet‚ Income Statement‚ Statement of Retained Earnings‚ and Statement of Cash Flows (Fundamentals
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facilitate comparisons‚ and highlight both weaknesses and strengths. In addition‚ ratios are important profit tools in financial analysis that help financial managers implement plans that improve profitability‚ liquidity‚ financial structure‚ reordering‚ leverage‚ and interest coverage. Managers use ratios to help them effectively run the business. Creditors use ratios for risk analysis. Equity investors use the ratios for stock valuation and to estimate the value of the organization. The 3
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FINANCIAL STATEMENT ANALYSIS 2001 2002 2003 2004 2005 Current ratio Current Asset 471‚282.00 552‚006.00 535‚360.00 785‚855.00 764‚409.00 Current Liability 146‚955.00 186‚074.00 127‚750.00 140‚392.00 139‚788.00 3.21 2.97 4.19 5.60 5.47 CURRENT RATIO. The current ratio (Sannella‚ 1991) above shows that in the year 2001 the current assets of J P Morgan (MIkdashi‚ 2001) are 3
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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
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Preparation of financial statements for sole proprietorships Learning Objectives: Identifying the components of Financial Statements Identifying the objectives of Financial Statements Understanding the preparation of Financial Statements Adjustments needed in Financial Statements 1. Introduction Generally Financial Statements are prepared for any business annually. As per the Periodic concept the profits and losses of a business is computed for a period. In practice this period is a one year. In Sri
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Financial Statements IFRS vs. GAAP Kathrine D. Nepon Strayer University John Ware ACC 401 November 27‚ 2011 ABSTRACT For those in the business world‚ particularly in the accounting field‚ a major issue has surfaced in recent years relating to the differences between Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS). Currently‚ the majority of countries in the world follow International Financial Reporting Standards guidelines; however
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…………………………………………………………………………………………..…………………5 Relationship Between the Assessments of Inherent and Control Risks…………………………..……..……6 Identifying Specific Controls Relevant to Specific Assertions………………………………………………..……..6 Types of Control Activities that Relate to Financial Statement Assertion……………………………..……..7 STAGE C: OBTAINBING EVIDENTIAL MATTER TO SUPPORT THE ASSESSED LEVEL OF CONTROL RISK…….7 Performing Tests of Controls………………………………………………………………………………………………………7 Nature of Tests of Control……………………………………………………………………………………………………
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Preparation of Consolidated Statement of Financial Position 1 The consolidation process • Before consolidating‚ it may be necessary to adjust subsidiary’s financial statements where: 1. The subsidiary’s end of reporting period is different to the parent’s. In such cases the subsidiary is required to prepare adjusted financial statements as at the parent’s reporting date. 2. The subsidiary’s accounting policies are different to the parent’s. In such cases the subsidiary is required to prepare adjusted accounts to ensure accounting policies
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Financial Statement Differentiation Paper Jasmine Unger ACC/561 April 8‚ 2013 Professor Timothy Jared Financial Statement Differentiation Paper Financial statements provide documentation of a company’s financial history for a set timeframe. One of the financial statement used by investors‚ creditors‚ and mangers is the balance sheet. The second statement used by accountant’s income statement‚ which is also important to shareholders. The third statement is the retained earnings statement‚
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Financial Statements Paper Your Name Principles of Accounting – ACC/280 Date Instructor Name Financial Statements Paper The purpose of accounting is to provide a means of reporting‚ recording‚ summarizing‚ and interpreting economic data within an organization. Accounting is used by everyone in one form or another. Everyone should have a basic understanding of accounting as it could be extremely beneficial to everyone. Within every company there should be an accounting department
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