The Four Types of Financial Statements ACC/561 Version 4 December 22‚ 2012 Much success in today’s business world is tied in with numbers in the form of accounting and financial statements. Being able to understand and properly read these statements is a critical component in truly knowing a business and properly assessing its overall performance. In the accounting world there are four main financial statements that are universally understood and prepared for most publically traded companies
Premium Balance sheet Income statement Generally Accepted Accounting Principles
Introduction Accounting is all about financial information —capturing it‚ recording it‚ configuring it‚ analyzing it‚ and reporting it to persons who use it. The financial statements : The final product of financial accounting is in the form of financial statements that are packaged with other information in a financial report. •Financial statements are prepared at the end of each accounting period. A period maybe one month‚ one quarter‚ or one year. •Financial statements report summary amounts
Premium Financial statements Income statement Generally Accepted Accounting Principles
FINANCIAL STATEMENTS AND CASH FLOW 1. Liquidity measures how quickly and easily an asset can be converted to cash without significant loss in value. It’s desirable for firms to have high liquidity so that they have a large factor of safety in meeting short-term creditor demands. However‚ since liquidity also has an opportunity cost associated with it - namely that higher returns can generally be found by investing the cash into productive assets - low liquidity levels are also desirable to the
Premium Generally Accepted Accounting Principles Cash flow Balance sheet
BENEFITS OF READING With the advancement of technology new devices like i-pod i-pad internet occupy a fair of time in our lives today. Without these devices our lives practically seem indispensable. Nowadays reading books seems to have taken a backseat. Reading books not only improves one’s vocabulary but builds one’s imagination which can inspire a person to write. It expands one’s ability to think and analyze beyond the obvious or the stated. It is also a good way to keep stress at bay. It gives
Premium Book Motivation Psychology
There are quit a few differences in financial and managerial accounting‚ the first differences has to do with the primary users of the reports; in financial accounting the reports are used by external users such as stockholders‚ creditors and regulators. On the other hand managerial accounting reports are used by internal users and include officers and managers. In addition the type and the frequency of the reports differ; financial accounting have financial statements and quarterly and annually are for
Premium Decision making Balance sheet Debt
allocations of Capital market Ressources(Useful to those making invest and credit decisions ( Provide info: economic resour‚ claims and changes Fundamental Concepts Relevant - Past‚ Present‚ Future Events ( Reliable - Dependable‚ Reasonably Free Of Error ( Verifiable ( Comparable to other entities ( Consistent over time Recognition And Measurement Concepts Economic entity ( Going concern ( Monetary unit ( Periodically Basic Principles Historical cost ( Accrual basis (recognize when goods
Premium Generally Accepted Accounting Principles Balance sheet Depreciation
MA932 Financial Statements Analysis Coursework 1 1. The circumstances in which the revaluation model may be used: (In accordance with IAS 38) There is active market‚ since the fair value of an intangible asset must be determined by reference to an active market in that type of asset. Sufficient regularity to ensure that the carrying amount of an intangible asset does not differ materially from fair value A. The 25000 revaluation decrease on 31 December 2011 should be recognized as an expense
Premium Balance sheet Generally Accepted Accounting Principles Asset
Discussion Question: Financial Statements • In what ways do the elements of the four financial statements interact with one another? How might changing one of the financial statements affect the other financial statements? Why is it essential to understand the relationship between the financial statements? The financial statements of an entity consist of: - Statement of Financial position - Statement of comprehensive income - Statement of changes in equity; and - Statement of Cash Flows In
Premium Income statement Financial statements Cash flow
Financial Statements Analysis Interpretation of Financial Ratios Financial statements analysis is the process of examining relationships among elements of the the company’s "accounting statements" or financial statements (balance sheet‚ income statement‚ statement of cash flow and the statement of retained earnings) and making comparisons with relevant information. Financial statements analysis is a valuable tool used by investors‚ creditors‚ financial analysts‚ owners‚ managers and others in their
Premium Financial ratio Balance sheet Financial statements
Financial Statement Analysis Project The Boeing Company November 11‚ 2004 Table of Contents I. Firm‚ Industry‚ and Environment 4 A. Description of firm and environment 4 B. Discussion of competitive environment 6 C. Economic climate and outlook 8 D. Other relevant factors‚ e.g. governmental regulations‚ labor relations‚ litigation‚ etc. 8 II. Evaluation of Balance Sheet 10 A. Description of asset structure 11 a. Current Assets 11 b. Customer and commercial financing 12 c.
Premium Boeing Balance sheet