CHAPTER 1: INTRODUCTION TO FINANCIAL ACCOUNTING 1.1 USE‚ PREPARATION AND CONCEPTS * Use: The information derived from financial accounting is used by managers‚ investors‚ bankers‚ financial analysts and accountants‚ helping them to learn how to use information effectively and to do their jobs better. This information is essential to accountants for the services they provide. * Preparation: to be effective users of accounting information‚ people need to know something about how and
Premium Balance sheet Income statement Generally Accepted Accounting Principles
CHAPTER 2: REGULATION IN FINANCIAL ACCOUNTING Chapter 2 regulation in Financial accounting LEARNING OUTCOMES Upon completion of this chapter you should be able to understand: • The difference between management and financial accounting. • Why accounting regulations are important and required. • The need for and the structure of professional regulation‚ company law‚ stock exchange legislation and EU Directives. • How the different aspects of regulation work together
Premium Corporation Limited company International Financial Reporting Standards
Managerial and Financial Accounting Report FIN540 Accounting for Managerial Decision Making Abstract Financial accounting develops account information that is used by external parties such as stockholders‚ suppliers‚ banks‚ and government regulatory agencies in their decision-making. Management accounting develops confidential accounting information that is used by managers within an organization. Management accounting is a complex process of identifying‚ accumulating and analyzing information
Premium Management accounting Decision making
Evolution of Financial Accounting Introduction Accountancy is the art of communicating financial information of a business entity to its stakeholders. It is the branch of mathematical science that assists in discovering the causes of success and failure in a business. The American Institute of Certified Public Accountants (AICPA) defines accountancy as "The art of recording‚ classifying‚ and summarizing in a significant manner and in terms of money‚ transactions and events which are‚ in
Premium Double-entry bookkeeping system Balance sheet
[pic] BUS256 Contemporary Financial Accounting Semester 1‚ 2011 Unit Information and Learning Guide Unit coordinator Dr. David Holloway Associate Professor Murdoch Business School Room: ECL 4.028 Tel: 9360 2704 Fax: 9310 5004 E-mail : D.Holloway@murdoch.edu.au [pic] © Published by Murdoch University‚ Perth‚ Western Australia‚ January 2011. Originally written by: David A. Holloway Date: October 2008 Amended by: David A. Holloway Date:
Premium The Unit Final examination Student
Do you agree or disagree? Justify. Suggest when and where these two concepts effectively applied in corporate. Pg 97 4. “MBO is the motivating factor or controlling technique”. Critically evaluate this statement. Compare and contrast between MBO and MBE. Pg 85 1.2 FINANCIAL MANAGEMENT 1. “The profit maximization is not an operationally feasible criteria.” Do you agree? Illustrate your views. Pg 6 2. “The function of Financial Management is to review and control decisions to commit or recommit
Premium Marketing Finance Management
What are the major limitations of Financial Accounting? Explain with the help of Examples. What are the alternatives to overcome these limitations? Financial accounting can be defined as reporting of the financial position and performance of a firm through financial statements issued to the external users on a periodic basis. It is a field of finance that treats money as a means of measuring economic performance instead of treating it as a factor of production. It encompasses the entire system
Premium Balance sheet Income statement Asset
Financial Accounting Summary Financial Accounting – Summary Notes Financial Accounting – Summary Notes 1 Financial Statement Basics 3 Understanding of the 3 financial statements – (balance sheet‚ income statement and statement of cash flows). What does each financial statement represent? 3 What is the structure of each statement? 3 What is the link between the three statements? 4 Understanding of the basic mechanics of financial accounting – (debits‚ credits‚ transaction journal entries‚ adjusting
Premium Depreciation Generally Accepted Accounting Principles Asset
Multiple Choice: 1. In general terms‚ financial assets appear in the balance sheet at: a. Face value b. Current value c. Cost d. Estimated future sales value 2. Which of the following practices contributes to efficient cash management? a. Never borrow money – maintain a cash balance sufficient to make all necessary payments. b. Record all cash receipts and cash payments at the end of the month when reconciling the bank statements
Premium Generally Accepted Accounting Principles Inventory Balance sheet
1. a) Net Income = 135‚750$ b) OCF = 155‚000$ 2. a) Equity Value = Net fixed assets – long-term liabilities 2006: $3600 2007: $3240 b) Net working capital = (current asset– current liabilities year 1) Change = (CA-CL of years 1) – (CA-CL of year 2) = 972-727 = 245 3. Common Size Income Statement: Sales/Revenue = 100% Cost of Goods Sold = 65.3% Depreciation = 13% Earnings before interest and taxes = 21.64% Interest Paid = 16.32% Taxable income = 53.25% Taxes (34%) = 1.8%
Premium Generally Accepted Accounting Principles Balance sheet Financial ratios