Profitability – how profitable the firm is in relation to sales and assets. Liquidity – ability of a company to pay its creditors and meet its debts. (ideal current ratio is 1.5-2.0 If more, then firm shud aim at reducing some asset. Much of it cud have been tied up in stocks ) Efficiency – how well the firm is using its resources. gearing ratio - expresses the ratio between borrowed capital and total capital employed. It is a measure of efficiency to help interpret the degree to which
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Accounting period -- the period of time over which profits are calculated. Normal accounting periods are months, quarters, and years (fiscal or calendar). Accounts payable -- amounts owed by the company for the goods or services it has purchased from outside suppliers. Accounts receivable -- amounts owed to the company by its customers. Accrued expenses, accruals -- an expense which has been incurred but not yet paid for. Salaries are a good example. Employees earn or accrue salaries each hour
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ACCT 6344 FINANCIAL STATEMENT ANALYSIS A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=financial-statement-analysis Visit Our website: http://hwsoloutions.com/ Product Description ACCT 6344 Financial Statement Analysis, Multiple Choice Question The objective of forecasting is to develop Answer stand-alone financial statements for future analysis. a set of realistic expectations for future value-relevant payoffs. a balance sheet and income statement that articulate
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Question 1 | The comparative balance sheets of Nike, Inc. are presented here. | NIKE INC. | Comparative Balance Sheets | May 31 | ------------------------------------------------- ($ in millions) | Assets | 2007 | 2006 | Current assets | $8,076 | $7,346 | Property, plant, and equipment (net) | 1,678 | 1,658 | Other assets | ------------------------------------------------- 934 | ------------------------------------------------- 866 | Total assets | -------------------------------------------------
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Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are sold quickly and at relatively low cost. The term FMCGs refers to those retail goods that are generally replaced or fully used up over a short period of days, weeks, or months, and within one year. This contrasts with durable goods or major appliances such as kitchen appliances, which are generally replaced over a period of several years. FMCG have a short shelf life, either as a result of high consumer demand
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from delivering or producing goods, rendering services, or other activities that constitute the entity’s major or central operations. B. REALIZATION PRINCIPLE- revenue should only be recognized when the earnings process is judged to be complete and there is reasonable certainty as to the collectability of the asset to be received. C. INSTALLMENT SALES- customers pay for purchases in installments over long periods of time. a. Used because the company can’t reliably estimate bad debts
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appropriate action for violation of any of its covenants. GOOD LUCK! Name____________________________ Problem 1 (A) (5) Recently, some accountants have proposed new accounting standards for valuing Property, Plant and Equipment (PP&E). Currently, PP&E are valued at historical costs and then depreciated over their estimated useful lives. Rather than list PP&E at historical costs, the proposed standard would require companies to determine the fair value of their PP&E each year
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DDANANG RUBBER JOINT STOCK COMPANY (DRC) [pic][pic] Completed by Group 6: Nguyen Thi Thanh Xuan Le Thanh Viet Bach Do Duc Trung Nguyen Thi Thanh Minh Tran Xuan Toan Issued date: September 26, 2010 Contents I. EXECUTIVE SUMMARY 3 II. COMPANY OVERVIEW 4 2.1 Company Introduction 4 2.1.1 Business activities: 4 2.1.2 Management Board: 5 2.1.3 Ownership structure: 5 2.1.4 Company’s History: 6 2.2 Products & Services 8 2.3 Business Strategy
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Table of Contents Introduction – Beacon Lighting Corporation Pty Ltd………………………………………..6 PROFITABILITY & RETURN Gross profit margin …………………………………………………………………………..7 Net profit margin ……………………………………………………………………………..8 EFFICIENCY Debtor days ratio ........................................................................................................................9 Creditor days ratio.........................................................................................................
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investment in equity shares of another company. Identify the sole criterion for applying the equity method of accounting and guidance in assessing whether the criterion is met. Prepare basic equity method journal entries for an investor and describe the financial reporting for equity method investments. Record the sale of an equity investment and identify the accounting method to be applied to any remaining shares that are subsequently held. Allocate the cost of an equity method investment and compute
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