Financial Statement Differentiation Paper Abstract Considering the rapid globalization and expansion of business activities today, the importance of the four different financial statements; balance sheet, income statement, retained earnings statement and the statement of cash flows cannot be over-emphasized. This paper covers the four different types of financial statements, the information each one of it contains, and which statement is of most interest to investors, creditors, and management
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The Four Financial Statements In accounting there are four statements used to display a business’s finances. They are the income statement, retained earnings statement, balance sheet, and statement of cash flows. These charts interconnect to each other to show a specified amount of time. Without one of them, an accountant cannot see accurately the state of a business. Accountants are not the only people who find this information useful. Internal and external users can find the information
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IAS 12: Income Taxes Objective: The objective of this standard is to prescribe accounting treatment for income taxes. Scope: IAS 12 should be applied in accounting for income taxes. Income taxes include: • All domestic and foreign taxes the based on taxable profits • Taxes, such as withholding taxes, payable by a subsidiary, associate or joint venture on distributions to reporting company IAS 12 does not address: • Investment tax credit • Methods of accounting for government grant
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The Statement of Cash Flows Purpose of a statement of cash flows: To provide information about the cash inflows and outflows of an entity during a period. To summarize the operating, investing, and financing activities of the business. The cash flow statement helps users to assess a company’s liquidity, financial flexibility, operating capabilities, and risk. The statement of cash flows is useful because it provides answers to the following important
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The Statement of Cash Flows Purpose of a statement of cash flows: To provide information about the cash inflows and outflows of an entity during a period. To summarize the operating, investing, and financing activities of the business. The cash flow statement helps users to assess a company’s liquidity, financial flexibility, operating capabilities, and risk. The statement of cash flows is useful because it provides answers to the following important questions:
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depreciation expense was $1.5 million. Income statement is the one of the three financial statements. The other two are the balance sheet and the statement of the cash flows. Brandywine Homecare’s total profit margin of 12.5 percent shows that the homecare makes 12.5 cents on every dollar of total revenues. If the company doubled its depreciation, both net income and profit margin would be zero. The cash flow will be the same for both cases, which is $3 million. Cash accounting and accrual accounting
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Financial Statement by March 31， 2011 for Financial Accounting and Reporting CPTC 31125 handed in to Prof. Pascale Lapointe edited by Marie DU BOUCHER B00135369 Anna-Christina FREDERSHAUSEN B00405951 Shuangyu SHEN B00336198 Mohamed YADANI B00347217 25.11.2011 * * Contents Contents i Table of Figures i 1 Oversight of the firm and industry 1 2 Oversight of the financial position 2 2.1 Balance Sheet 2 2.2 (Comprehensive) Income Statement 4 2.3 Statement of Changes
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Chapter 01 Financial Statements and Business Decisions True / False Questions 1. Accounting is a system that collects and processes financial information about an organization and reports that information to decision makers. True False 2. Assets on the balance sheet are recorded at market value or replacement cost. True False 3. In accounting and reporting for a business entity, the accounting and reporting for the business must be kept separate from other
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Park’s net income for 2014. Flint Hills Park. Income Statement For the year end December 31, 2014 Revenues Service revenue $132,000 Sales revenue 25,000 Total revenue $157,000 Expenses Expenses during 2014 $126,000 Total Expenses $126,000 Net Income $31,000 # Answer (b) Prepare a retained earnings statement and a balance sheet for Flint Hills Park as of December 31, 2014. Flint Hills Park. Retained Earnings Statement For the year
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Financial Statements Papers Part I Sherrie Christian ACC/497 April 8, 2013 Rick Kwan, MBA Financial Statements Papers Part I The financial statements are important as they inform the users of the economic health and stability of the entity. Each financial statement provides information to determine economic health, such as financial position, performance, and changes. Assets, liabilities, and equity provide a measurement of financial position. Income and expenses provide a measurement of performance
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