Financial Statement Paper ACC/280 Four basic financial statements are used to gain insight into the stability of the organization. Without the data from each financial statement, a potential investor cannot fully understand the organization one may be investing in. The four financial statements managers, investors, creditors and employees view for financial data are: income statement, retained earnings statement, balance sheet, and statement of cash flows (Weygandt, Kimmel, & Kieso
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Introduction While United States Generally Accepted Accounting Principles (U.S. GAAP) are required throughout the United States, other countries utilize other methods of classifying their financial statement items. While the standards of accounting differ among many countries, there has recently been an effort to attain a universal set of standards under International Financial Reporting Standards (IFRS). While this has not yet been achieved, multiple countries have made an effort to converge
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In week four, the objectives were define as prepare a statement of cash flows using both direct and indirect methods, apply ratio, vertical, and horizontal analyses to financial statements and prepare journal entries associated with the issuance of preferred and common stocks and the declaration and payment of dividends. Cash flows will identify a company's sources and uses of cash. Companies are required to prepare a statement of cash flows in their annual reports because it contains essential
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Financial Statement Differentiation Joshua Tabaka University of Phoenix ACC/561 WH12MBA06 March 20, 2013 Instructor: Norris Dorsey Workshop 1 Financial Statement Differentiation There are four major types of financial statements and they include the balance sheet, income statement, statement of equity and statement of cash flows. The balance sheet shows the assets, liabilities and equity balances as of a given point in time. It will typically show the short-term and long-term
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elements of financial performance 3 a. Balance Sheet 3 i. Apple 3 ii. Microsoft 4 b. Income Statement 4 i. Apple 4 ii. Microsoft 5 c. Cash Flow Statement 5 i. Apple 5 ii. Microsoft 6 3. Interpretation of the financial information 6 a. Return 6 i. Apple 6 ii. Microsoft 7 b. Operation 7 i. Apple 7 ii. Microsoft 7 4. Analysis and Comparison on financial statement analysis 8 a. Liquidity 8 b. Solvency 9 c. Efficiency 9 d. Profitability 10 e
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Financial Statements ACC 290 Mrs. Evans October 5, 2014 Assets, liabilities, expenses, and revenues are of interest to users of accounting information. This information is arranged in the format of four different financial statements, which form the backbone of financial accounting (Intro. to Financial Statements, 2010). Businesses and organizations simply cannot do business, make money, or grow without proper accounting and record keeping. This summarization will identify the four basic
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Direct and Indirect Cash Flows The statement of cash flows is one of the components of a company’s set of financial statements that show the changes in the balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing and financing activities (Accountingtools, 2016). Companies must adjust the effect of the use of accrual accounting to determine cash flows. In order to prepare this statement, the information needed usually comes from three
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Cash flow Cash flow is a revenue or expense stream that changes a cash account over a given period. It is one of the most important pieces of information that can be derived from financial statements. Cash flow is important because a positive net income on the income statement is ultimately insignificant unless a company can translate its earnings into cash, and the only source in financial statement data for learning about the generation of cash from operations is the statement of cash flows. Cash
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prepare the balance sheet and the income statement at 31,July 2006. Firm value can also be regarded as the sum of the value of all assets – where asset value is given by the discounted cash flow resulting from the operation of the asset (Damadoran, 2012). It is given the information about the firm asset valuation method. The skiing company generates cash flow, since the skiing equipment rent by the customers. The company asset value is depending on the future cash flows generated by the equipment rental
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CPA's Management of a company has responsibility for financial statements and related disclosures Board of Directors (audit committee) is responsible for ensuring that processes are in place for maintaining the integrity of the company's accounting, financial statement prep, and financial reporting Independent Auditors (CPA's) present Unqualified (clean) Audits Unqualified/Clean Audit- attests to the fairness of financial statements and related disclosures Institutional Investors- private and
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