his wagon and go off to peddle his merchandise (wares) for sale. This merchandise was called working capital because it was what he actually sold or turned a profit on to produce his profits. The wagon and the horse used are considered his fixed assets. He generally owned the horse and wagon, so those were always considered financed with equity capital, but his merchandise was always bought on credit, which was just like borrowing from the bank (his supplier). The more trips this peddler made each
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with SEC, along with other data quarterly. These quarterly reports are called 10Q reports. Similarly we have annual reports which are called 10K reports. d) The Management is responsible for the financial statements. They are responsible for the fairness and accuracy of these statements. The statement includes a report of Management Responsibilities signed by the CEO and the CFO. Potential users of these statements could be shareholders, creditors, suppliers, and employees, investors, banks, competitors
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of its assets, it can experience a capital gain or loss. Revenues minus expenses, plus gains minus losses, equal net income or net loss. The dollar amount of net income listed on the income statement is also found on the cash flow statement under the operating activities section. • Balance Sheet The Balance sheet has two main purposes. First, it presents a snapshot at a point in time. Second, it helps to improve understanding, as companies group similar assets and similar liabilities together
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Steven Kaplan On October 5, 1992, the Marriott Corporation announced plans to spin off its profitable hotel management business leaving its real estate assets as part of the successor corporation. At first glance the deal did not seem very different from many other corporate restructurings. However, because much of Marriott's existing debt was to become an obligation of the real estate assets only, the default risk on that debt would increase significantly as a result of the spinoff. The spinoff announcement
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statement by different stakeholders (Fridson & Alvarez, 2011). 1. Management: Financial statement is very essential for the company management because it provide all the financial information they need for the management of their business, like business planning, business expansion tracking of different income and expenditure. It also helps them to be transparent during the management of the company, in the Shell the management always focus on proper financial statements. 2. Lenders: Lenders
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1 historical cost accounting (hca) is the situation in which accountants record revenue, expenditure and asset acquisition and disposal at historical cost: that is, the actual amounts of money, or money's worth, received or paid to complete the transaction. 2 nature of historical cost accounting this is one of those idiosyncratic headings that teachers dream up (me too, probably!) that meant nothing to me without further explanation 3 the big advantage of hca is that it leads to absolute certainty
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Lesson 1 Chapter 1 LIFA 1.1 WHAT IS ACCOUNTING? · Accounting- an information system that identifies, measures, records and communicates understandable, relevant, reliable, and comparable information about an organization’s economic activities. · Recordkeeping, or bookkeeping, is the recording of financial transactions, either manually or electronically, for the purpose of creating a reliable bank of data · Primary objective of accounting- to provide useful info for decision-making · Accounting
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ASSIGNMENT Financial Management TOPIC Ratio Analysis on Shinepukur Ceramics Limited (2008-2010) Submitted to S. M. Arifuzzaman Course Instructor Financial Management Department of Accounting & Finance Submitted by Report by S. M. Benzir Ahmed Other Members Rawshon Maksuda Ahmed Rushed Imam Id: 00-00000-0 Id: 00-00000-0 Id: 00-00000-0 Sec: C Semester: Fall 2011-2012 MBA Program Department of Business Administration Submission Date: 22 December 2011 American International
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of Value Creation • Managers create value by focusing on product market and financial market strategies. • Product market strategies involve management of revenues and expenses, efficient allocation and use of firm assets as well as sound (positive NPV) investment decisions. • Financial market strategies involve prudent management of liabilities and optimal mix of debt and equity in funding firm operations and investments. • Finally financial market strategies require optimal distribution
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STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2012 2012 2011 (US $ in '000) ASSETS 1,567,935 246,090 255,567 7,999,874 4,735,688 218,067 59,120 541,385 15,623,726 1,061,044 360,123 428,010 4,116,734 4,284,742 176,092 71,614 452,305 10,950,664 Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Deferred tax asset Other assets LIABILITIES 194,325 1,977,449 11,746,459 50,000 393,435 14,361,668 1,262,058 143,022 347
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