Introduction to Financial Accounting & Key Financial Statements Define Accounting Accounting is the process of identifying, measuring, recording and communicating economic information to assist users to make decisions. “Accounting is the language of business” – Warren Buffett Users are able to make better, well-informed decisions with the correct and sufficient information provided * The CEO salary is regarded as an expense on the financial statement as it is a deduction and it reduces the company’s
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of submission: 17th November, 2011 The Demand for financial Statement Information: * Introduction Financial statement is the product of a diverse set of demand and supply forces. Financial statement information is needed to facilitate decision making to facilitate the monitoring of management or to interpret contracts or agreement that includes provisions based on such information. Parties demanding financial statement information A. Shareholders, Investors and Security Analysts:
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change. Strategic financial planning sets out the broad series of steps that need to be taken to achieve the business’ strategic objectives. Examples of changing business environments: o Taxation and other laws o Technology o Economy o Financial Innovations Within this changing environment the foals of the
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BASIS FINANCIAL STATEMENTS Chapter Summary Financial statements are the primary means of communicating financial information to users. Chapter 2 covers the income statement, balance sheet, and statement of cash flows. Chapter 1 set forth the objectives of the financial reporting process, and offered the observation that these objectives are met in large part by a set of financial statements. In this chapter, we take
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Exam 1 CFIN 3 Scott Besley Chapters 1-2-4 Chapter 1 1. What are the three principal forms of business organization? What are the advantages and disadvantages of each? 2. Drawing on your background in accounting, can you think of any accounting procedure differences that might make it difficult to compare the relative performance of different firms? 3. Compared to purely domestic firms, what are some factors that make financial decision making more complicated for firms that operate
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A Tutorial on Discounted Cash Flow, Fall 2015 Notes prepared by John Tsagarelis, jtsagare@uwo.ca DRAFT: Comments, Suggestions Welcome 9/20/2015 Preamble As we walk through life we develop mental maps of situational settings. These are not sight patterns, but rather decision patterns among choices available to us in any given circumstance. For example, we take familiar roads to our summer cottage or accept return-on-equity is an unbiased stock return predictor. Once we form a map, it is
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(COGS), hence $5.7 million loss resulted from such sales was still accounted for in pre-tax profits. Consequently, operating cash flow would be unaffected. (ii) Inclusion of the financial statements of certain foreign subsidiaries This change had the effect of increasing the Corporation’s revenue and pre-tax profits by $5.4 million. As a result, operating cash flow faced the same amount of increment. (iii) Change in accounting for depreciation of plants, machinery and equipment (PPE)
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1. TASK 1 Financial statement is a list that indicates the financial activities of the business; it shows the ups and downs of the company in terms of financial, and financial statement could bring the company to wealthy as well, as the company has some improvements or brainstorming by seeing each of the statement. It has so many things inside of it, but then first of all, there are 4 types of financial statements, which are the following statements: 1. Balance Sheet, defines as the financial
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The Effects of Changes in Foreign Exchange Rates By: Benjamin T. Givens INTRODUCTION Over the past few decades, different generally accepted accounting principles (GAAP) have been developed in various countries. These differences have arisen in response to the unique legal, regulatory, litigious, social, economic, religious, and cultural environments of the countries they were created in (Wiecek and Young, 1-2). The increase in globalization coupled with related regulations has given rise
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Accounting for non-accounting students eighth edition John R. Dyson ACCOUNTING FOR NON-ACCOUNTING STUDENTS Visit the Accounting for Non-Accounting Students, eighth edition Companion Website at www.pearsoned.co.uk/dyson to find valuable student learning material including: G G G G Multiple choice questions to help test your learning Extra question material Links to relevant sites on the web Glossary explaining key terms mentioned in the book We work with leading authors to develop
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