Investment Analysis Table of Contents UNIT 1 2 DQ1 2 DQ2: Describe the relationship between risk and return 4 DQ 3How can we use the Modified Altman and Modified Chanos algorithms to detect inflection points in determining leverage shifts? 5 UNIT 2 7 DQ 1: Describe the concept behind an efficient capital market. 7 DQ 2: Do you believe we have efficient capital markets? 8 DQ 3: What are the four required financial statements under IFRS and GAAP? 8 DQ 4: How do some managers
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* Basic principle Revenue principle The revenue principle, also known as the realization principle, states that revenue is earned when the sale is made, which is typically when goods or services are provided. A key component of the revenue principle, when it comes to the sale of goods, is that revenue is earned when legal ownership of the goods passes from seller to buyer. Note that revenue isn't earned when you collect cash for something. Expense principle The expense principle states that
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right to return expires. If the company has signed a long-term contract with the customer, revenue is recorded as progress is made on construction. All three exceptions conform to the general principle that revenue is recognized when it is “earned and receivable." In other words, the general principle always applies. AP22 11/30/13: Bob Brown started his business, Bob Brown Company, by
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Basic Accounting Quiz# 2 MCNP-ISAP Name : __________________________________________________ Date:____________ Score:____________ Directions: Encircle your final answer. Do not cheat. Good luck! 1. | The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the | balance sheet income statement statement of cash flows | 2. | The financial statement that reports the assets, liabilities, and stockholders'
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MEMO Date: August 13, 2013 To: Thomas Carroll, CEO From: Jose R. Pizarro Jaimin Modi George Triarchou Monica Balbuena Shuyuan Qiu RE: Mercury Athletic valuation and acquisition recommendations We believe that Mercury is an appropriate target for AGI since an acquisition can be an excellent growth opportunity. First, through the acquisition AGI can take the advantages of some existing synergies. Acquiring Mercury would expand AGI’s business size and consequently
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these. The time frame associated with a balance sheet is: A. a point in time in the past. B. a one-year past period of time. C. a single date in the future. D. a function of the information included in it. Current U.S. Generally Accepted Accounting Principles and auditing standards require the financial statements of an entity for the reporting period to include: A. Earnings and gross receipts of cash for the period. B. Projected earnings for the subsequent period. C. Financial position at the end of
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------------------------------------------------- Jones Electrical Distribution In the past several years, Jones Electrical Distribution is profitable, but it is in the condition of cash shortage. With its 2007’s sales go up, Jones need borrow more money to help its rapid development. Then he got a maximum line of credit $350,000. With our analysis report, we help Jones to choose whether to take advantage of 2% trade discount, we can observe that Jones’credit line will be $318,000 without discount
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* Findings and Analysis: Liquidity Ratio 1. Current Ratio: A company’s current assets divided by its current liabilities is known as the Current Ratio. This ratio is regarded as a measure of short-term debt paying ability. It measures the capability to obsolete the current liability with comparing to current asset by how many times. The equation is- Current Ratio = Current AssetCurrent Liability * The general rule of thumb calls for a current ratio of at least 2:1. If it is greater than
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Accenture Reports Fourth-Quarter and Full-Year Fiscal 2012 Results, With Record Annual Revenues, EPS, Operating Margin, Free Cash Flow and New Bookings -- Fourth-quarter revenues increase 2% in U.S. dollars and 9% in local currency, to $6.8 billion; quarterly EPS are $0.88; free cash flow is $1.6 billion --- For full year, revenues increase 9% in U.S. dollars and 11% in local currency, to $27.9 billion; EPS increase 13%, to $3.84; and free cash flow is $3.9 billion --- New bookings are $9.2 billion
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General Evaluation I. Theories 1. During the lifetime of an entity, accountants produce Financial Statements at arbitrary points in time in accordance with which basic accounting concept? a. Objectivity c. Matching Principle b. Periodicity d. Conservatism 2. The debit and credit analysis of a transaction normally takes place a. when the entry is posted to the ledger b. before an entity is recorded in a journal
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