beneficial to internal and external sources that are interested in making a business grow. There are four basic financial statements that makeup the backbone of financial accounting. These four statements are balance sheets, income statements, retained earnings statements, and statements of cash flow. A balance sheet is used to show your business’s assets, what your business owns, and the business’s liabilities, what your business owes. It can paint a picture of your business’s finances at a specific
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Company From: Anton Saadeh Subject: Sensitivity Analysis for the 1st Quarter, 20X1 Scope and objective of the work performed We analyzed the Global Electronic Company’s budget for the first quarter. The analysis is included retained earnings, income statement and balance sheet. From the analysis of the paper, cash flow has changed because of the collections from sales on account during the first quarter. The company collects the cash in three months when the sale is made. The biggest
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The four basic financial statements are the income statement, retained earnings statement, balance sheets and statements of cash flow. The information that these reports provide to employees, managers, and investors can range from a large group of information such as, if a company is financially able to fund the company operations and pay their debts on time. These reports can also tell a company’s predicted future earnings. Each of these reports are as important as another because they work together
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The four basic financial statements are income statement, retained earnings statement, balance sheet, and statement of cash flow. Each of these statements has specific value for internal and external users to use them for. These statements can help a company determine how well they are doing in the market. By evaluating the information given in these statements there may even show potential for a company to grow. The income statement shows a company’s revenues, income, and expenses. With this
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Problem 14 Year 9 income statements P Company S Company Sales 630,000 340,000 Interest income 1,850 Investment income 15,339 Gain on sale of land 7,000 Total revenues 652,339 341,850 Cost of sales 485,000 300,000 Interest expense 17,000 Selling and admin. expense 50,000 20,000 Income tax expense 34,000 8,740 Total expenses 586,000 328,740 Net income 66,339 13,110 Bonds payable – P Company Issued Jan. 1, Year 2 200,000 (a) Discount Jan. 1, Year 2 10,000)
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records and communicates its economics to the interested parties. There are four basic financial statements. The income statement shows the revenues, expenses and income of a company over a specific period of time. The retained earnings statement summarizes the changes in earnings over a specific period of time. The balance sheet shows a report of assets, liabilities and equity for an exact point in time. The last would be the statement of cash flows which summarizes cash flows in and out of a company
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the error. “Correct a prior-period inventory error. For example, if the previous year's ending inventory was understated by $1 million, then the beginning inventory and retained earnings balances for the current year also are understated by $1 million” (Basu, 1999-2013). Debit inventory and credit retained earnings by $1 million each to reverse the prior-period error. You then need to count the inventory correctly in the current year and there should be no inventory-related errors on your financial
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Book Review: The Little Book That Still Beats the Market The book is written in the first person point of view of the author, Joel Greenblatt. He talks about the various elements and basics of finance in a much different light as compared to how a common, every day finance specialist would normally explain it. He breaks it down into a level wherein even young kids could understand, making it relatable to people of all ages. Having such a complex topic being discussed in the most simple way possible
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Sons, Inc .) Centuries later, the United States of America was born and still in the early stages of commerce. By the 1970s and 80s, American production management and cost accounting seemed obsolete. American firms’ began restructuring, focusing on quality and customers, productivity and cost cutting, and inventing new cost and management accounting procedures. Our government was back on top, although much of world economy found extreme economic problems. Evolution has shown us that there is
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Auditors’ Fees for Nonaudit Services and Earnings Management William R. Kinney, Jr. The University of Texas at Austin Robert Libby Cornell University I. INTRODUCTION rankel et al. (2002) (hereafter FJN) present a timely paper using a new data set to test several propositions, including one suggested by the Securities and Exchange Commission (SEC) about the relation between nonaudit fees paid by a registrant to its auditor and the registrant’s earnings quality. In this discussion we use comments
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