Assessment activity 4 PART 1 A.In financial accounting‚ assets are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset. Simply stated‚ assets represent value of ownership that can be converted into cash (although cash itself is also considered an asset).The balance sheet of a firm records the monetary value of the assets owned by the firm. It is money and other valuables
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The balance sheet‚ income statement and cash flow statement are closely related. Basically‚ a balance sheet describes a company’s assets‚ liabilities and stockholder’s equity in a specific period of time. An income statement mainly shows the net profits or loss of a company. The purpose of the income statement is to show stockholders and investors whether the company earned or lost money. A cash flow statement explains cash inflows and outflows. Each financial statement reveals a part of a company’s
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1.2 What is the difference between an annual report and a 10-K report? An annual report although could be consider as shorter version of 10k but the key difference lies in approach and intention of reporting‚ meaning with what point of view the document is prepared an annual report is persuasive in nature and persuade investors to invest with the corporation‚ printed on a glossy paper with attractive graphic and contains management spin‚ management could chose the level of detail to be provided
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Western Michigan university | Is It Fair to Blame Fair Value Accounting for the Financial Crisis? | By Robert C. Pozen | | Luma Raha | 10/12/2011 | The article from the Harvard Business Review‚ "Is it Fair to Blame Fair Value Accounting for the Financial Crisis?" ‚ author Robert Pozen stipulates that the fair value accounting principles did not cause the financial crisis of 2008‚ but certainly aggravated it by common misconceptions about accounting standards. The article defines mark-to-market
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Balance Sheet and Income Statement Commentary Michael Turner BSA 500 – Business Systems I July 24‚ 2013 Simon Chen Balance Sheet and Income Statement Commentary Balance Sheets and Income Statements is an approach to review the overall financial status of the company. We will be reviewing four companies in different industries’ balance sheet and income statements. With a technique to combine the statements we will be able to evaluate the companies’ income‚ expense and stockholder’s equity in the
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paper will discuss a financial statement that reports the assets‚ liabilities‚ and owners equity on January1‚ 2012 called the balance sheet. The report the reader will see below is a current balance sheet for a company called Custom Building that I personally work with. Working one on one with the owner has offered quite a bit of experience in the accounting world. The reader will be able to view the balance sheet below‚ following the explanation of the balance sheet for Custom Building discussed
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| Abstract This document is concerned with the relationship between the financial crisis and fair value accounting. Its purpose is to make an understanding of the strengths and limitations of fair value accounting. The report also gives some examples of fair value accounting measures used in several Australian companies. In this report‚ City Weat Water LTD and JB HI-FI LTD are used to explain that. Introduction With the modern transportation and communication technology development‚ in the industrial
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Example Company Balance Sheet December 31‚ 2011 ASSETS LIABILITIES Current Assets Current Liabilities Cash $ 2‚100 Notes Payable $ 5‚000 Petty Cash 100 Accounts Payable 35‚900 Temporary Investments 10‚000 Wages Payable 8‚500 Accounts Receivable - net 40‚500 Interest Payable 2‚900 Inventory 31‚000 Taxes Payable 6‚100 Supplies 3‚800 Warranty Liability 1‚100 Prepaid Insurance 1‚500 Unearned Revenues 1‚500 Total Current
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Manilalectric Company and Subsidiaries Statement of Financial Position As of Dec.31‚2013 Common Size % 2013 2012 2011 ASSETS Noncurrent Assets Utility plant and others Investment in associates and joint ventures Investment properties Deferred tax assets- net Other noncurrent assets- net 42.65 5.08 0.58 2.04 8.94 50.40 0.84 0.75 1.41 4.07 49.98 0.4 0.78 0.34 3.12 Total noncurrent Assets 59.59 57.47 54.63 Current Assets Cash and cash equivalents
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ACC501: COMPUTERISED ACCOUNTING TUTORIAL 4 DISCUSSION QUESTIONS i. ‘Why are adjusting entries necessary? Surely they cause too much delay in preparing financial statements‚ and the financial effect of any entries made is immaterial in the long run.’ Respond to this criticism. ii. The owner of a business reviews the income statement prepared by you and asks‚ “Why do you report a profit of only $30 000 when cash collections of $100 000 were received and cash payments for the period totalled only
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