Accounting Study Guide for Test # 2 Topic 5: Financial Statement Analysis 5-1 (Q5-1) Explain in general terms the concept of return on investment. Why is this concept important in the analysis of financial performance? Return on investment measures profitability in relation to the amount of investment that has been made in the business. A company can always increase dollar profit by increasing the amount of investment (assuming it is a profitable investment). So‚ dollar profits are not necessarily
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Question 3-3 If a “typical” firm reports $20 million of retained earnings on its balance sheet‚ could its directors declare a $20 million cash dividend without having any qualms about what they were doing? Explain your answer. Its directors could declare a $20 million cash dividend without having any qualms about what they were doing‚ because retained earnings may not held as cash. Retained earnings represent the cumulative total of all earnings kept by the company during its life. Therefore‚ $20
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The Value profile of Bulgarians according to Hall and Hofstede When we talk about intercultural communication‚ we consider culture as a set of beliefs‚ ethics and values that determine the behavior of nations. Edward T. Hall divided cultures according to their ways of communicating‚ into high-context and low-context cultures. Low-context cultures are cultures‚ which need explicit verbal words and information‚ in order to fully understand the message. On the other
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GENERAL ACCOUNTING SECTION 1530 comprehensive income PURPOSE AND SCOPE .01 This Section establishes standards for reporting and display of comprehensive income. It does not address issues of recognition or measurement for comprehensive income and its components. .02 This Section does not apply to not-for-profit organizations (see FINANCIAL STATEMENT PRESENTATION BY NOT-FOR-PROFIT ORGANIZATIONS‚ Section 4400). DEFINITIONS .03 The following terms are used in this Section with the meanings
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1. According to Madison‚ what conditions have historically plagued “popular governments?” - Madison suggested that instability‚ injustice‚ and confusion have historically plagued popular governments. 2. Had the U.S. effectively dealt with those conditions? Explain. - No. We have made improvements from the complaints of citizens about instability and too strong of a government. The people have also complained that government will ignore the public’s health. 3. Describe the two methods of removing
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Fair value in financial reporting: problems and pitfalls in practice – a case study analysis of the use of fair valuation at Enron David Gwilliam∗ and Richard H G Jackson School of Business and Economics‚ University of Exeter‚ Streatham Court‚ Rennes Drive‚ Exeter EX4 4PU‚ UK This paper has been accepted for publication in Accounting Forum ____________________________________________________________ ____________ Abstract This paper contributes to the debate on the use of mark to market
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Income Statement Income statements present an ordered list‚ grouped by broad categories of revenues and expenses. The income statement begins with revenues followed by a list of expenses. U.S. GAAP and IFRS requirements for the presentation of income statements are similar‚ with some important differences. *Other than separating revenues from expenses‚ U.S. GAAP provides little guidance about which items the firm must separately display or their order. IFRS requires‚ at a minimum‚ the
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What Impact does Internet have on Today’s Youth? In our society‚ technology is ubiquitous. It helps a country to develop and make the life easier for those who use it. People are very influenced by the technology and they use it all the time such as internet which seduced almost all generations. In the excerpt “What’s the Matter with Kids today?” the author Amy Goldwasser disagrees with Doris Lessing who wrote the excerpt “On Not Winning the Nobel Prize”. They both see Internet in different
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Assessable income=ordinary income + statutory income. Ordinary income: income deriving from the courts (s6-5) Negative propositions: items that are not income by ordinary concepts: 1.Amounts not convertible into money :In Tennant v Smith (1892) free accommodation provided to a bank manager was held not to be ordinary income because building could not be sub-let and the benefit thereby converted to money. In FCT v Cooke & Sherden (1980) an incentive prize offered by a manufacturer was not income of the
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books that should be only tasted‚ few that should be chewed till digested: some to be read with curiosity‚ and some need reading with diligent attention. So is the case with the book authors. English literature is filled with the variety of authors that designed the 20th century literature. Few famous names of book authors that shaped the twentieth century literature are: George Orwell who was a great essayist and novelist and his writings are famous for social and political issues like poverty colonialism
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