ACC560 Week 10 Homework: Chapter 14: Financial Statement Analysis E14-11 Wiemers Corporation’s comparative balance sheets are presented below. Honghao Lu February 7 2016 Chapter 1- Introduction to Accounting Question 1: How does the business maintain its financial records? Who does the accounting for the business? What accounting or record system is used? Business Owner: Keep recording every single income and output in the company and be sure to make everything be legal. The accountant will do the accounting things. Everything would be recorded on the book and then upload into the computer data. Business Owner answer converted to text-book language: The collection, processing and reporting of data used to make business decisions are critical. Both internal and external users use the accounting information, analysis completed and reports generated. They would use the managerial accounting, income statement, balance sheet, owners equity, cash flow statements, and Recommendation: Make sure to record every data by some modern technology such as computers and do not only let the accountants do the accounting for you, but also let everyone who engaged into your business understands some concepts of accounting to make some correct business decisions. Question 2: Who periodically review and analyzes the accounting records? What reports are generated? How are they used to manage the business? Business Owner: Managers and the superiors will periodically review and analyzes the accounting records. Those reports include all the income and output that has been used in the past time. They are used to record everything and make sure everything be legal. Business Owner answer converted to text-book language: The internal users include managers, officers, internal auditors, sales staff, budget officers, controllers and employees would periodically review and analyzes the accounting records. The businesses assets, liabilities and owners equity as the last day of an accounting period are generated. They are used to produce the various business analysis and make business decisions. Recommendation: Everyone in the company should know some knowledge to face some emergency situations. Especially for managers and officers, they should review and analyzes the records every month or even every week because the accounting reports periodically record the profit and deficit that the company made. Those are really important for the owners to control the company’s economy. Question 3: How well do you understand the financial reports generated by your accounting system? How well do you utilize the information to make business decisions? Business Owner: I understand that the financial reports clearly record my company’s profit they made in the past. The information that I have will lead me to think more about its back meaning so that I can make decisions. Business Owner answer converted to text-book language: Accounting is an informative system that.

1. ACC560 Week 10 Homework:
Chapter 14: Financial Statement Analysis
E14-11 Wiemers Corporation’s comparative balance sheets are
presented below.
Honghao Lu
February 7 2016
Chapter 1- Introduction to Accounting
Question 1: How does the business maintain its financial
records? Who does the accounting for the business? What
accounting or record system is used?
Business Owner: Keep recording every single income and
output in the company and be sure to make everything be legal.
The accountant will do the accounting things. Everything would
be recorded on the book and then upload into the computer data.

2. Business Owner answer converted to text-book language: The
collection, processing and reporting of data used to make
business decisions are critical. Both internal and external users
use the accounting information, analysis completed and reports
generated. They would use the managerial accounting, income
statement, balance sheet, owners equity, cash flow statements,
and
Recommendation: Make sure to record every data by some
modern technology such as computers and do not only let the
accountants do the accounting for you, but also let everyone
who engaged into your business understands some concepts of
accounting to make some correct business decisions.
Question 2: Who periodically review and analyzes the
accounting records? What reports are generated? How are they
used to manage the business?
Business Owner: Managers and the superiors will periodically
review and analyzes the accounting records. Those reports
include all the income and output that has been used in the past
time. They are used to record everything and make sure
everything be legal.
Business Owner answer converted to text-book language: The
internal users include managers, officers, internal auditors,
sales staff, budget officers, controllers and employees would
periodically review and analyzes the accounting records. The
businesses assets, liabilities and owners equity as the last day of
an accounting period are generated. They are used to produce
the various business analysis and make business decisions.
Recommendation: Everyone in the company should know some
knowledge to face some emergency situations. Especially for
managers and officers, they should review and analyzes the
records every month or even every week because the accounting
reports periodically record the profit and deficit that the
company made. Those are really important for the owners to
control the company’s economy.
Question 3: How well do you understand the financial reports

3. generated by your accounting system? How well do you utilize
the information to make business decisions?
Business Owner: I understand that the financial reports clearly
record my company’s profit they made in the past. The
information that I have will lead me to think more about its
back meaning so that I can make decisions.
Business Owner answer converted to text-book language:
Accounting is an informative system that aims to identify,
record, ad communication reliable and comparable information
about business activities, it helps assess and exploit business
opportunities, products, investments, and social and community
responsibilities.
Recommendation: Financial reports can clearly state the profit
and deficit that this company made in the past. The financial
reports sometimes could help people to decide to make the
investment or not. So, the owners should keep making the
financial reports be clearly and enough for checking and
estimating the investments. It really helps a lot in the company
and investments.
Question 4: What information would you like to obtain from
your financial accounting system; besides how much income
you are producing?
Business Owner: I would like to obtain how much I got and the
problems that we faced in the past. I would like to obtain the
tax and the cost of producing, too.
Business Owner answer converted to text-book language: The
owner has to learn the businesses revenues and expense, net
profit, or net loss and tax.
Recommendation: Pay more attention on the profits and cost of
producing the products. Utilize a month end closing period to
produce financial statements to revise procedures and processes
to improve. Because each different products would have
different effects in the different period time. There are also

4. some substitutions for each products. So, monthly checking
businesses revenues and expanse would help owners to check
the products status so that they know how to produce or
improve.
Question 5: Have you had any formal instruction or training as
to how to record your business transactions, understand the
information, and or review and analyze the data?
Business Owner: No, actually I have not been taught this
officially.
Business Owner answer converted to text-book language: The
collection, processing and reporting of data used to make
business decisions are critical. A series of internal reports
generated to provide information to internal users to review,
analyze, and decide actions required to improve the financial
reports of owners equity. These are the standard financial
reports a business uses to record information, measure the
business, analyze information, and communicate financial
information about the business.
Recommendation: As a business owner, you should at least
understand some basic knowledge of the finance because it can
help you to be easier to control the company. Those basic
information are really necessary to be learned. Those standard
financial records could make the decisions be critical and
provide information to review and analyze. So, the company
owners should learn more about business transactions,
understand the information, and or review and analyze the data
to take over of their companies well.
Question 6: Is your financial information detailed and organized
enough to give adequate management information? How do you
utilize this information?
Business Owner: Actually not. My information is not detailed
and organized enough to easily give adequate information. Most
of the time, I have to understand it by my own and unscramble
it word by word so that I will not miss any helpful information.

5. Business Owner answer converted to text-book language: The
profit and loss statement and balance sheet and other financial
report can then be produced using the ledger accounts listed on
the trial balance. Accountant will utilize this report to make
adjusting journal entries after tax year end.
Recommendation: Detailed and organized information are really
necessary for a business owner. Those information would help
business owner to make correct decisions immediately to avoid
some unnecessary loss. Business owners should hire more and
excellent accountants to record financial information detailed
and organized enough to give adequate management
information. Owners also need some analysts to analyze the
generated information for adjusting data and making correct
decisions.
Question 7: What is a business plan ?
Business Owner: Business plan is a plan that managers and
superiors made for the future developments. A good business
plan would help a company a lot.
Business Owner answer converted to text-book language: A
business plan is a formal statement of a set of business goals,
the reasons why they are believed attainable, and the plan for
reaching those goals. It may also contain background
information about the organization or team attempting to reach
those goals.
Recommendation: Business owner should pay more attention on
business plan because a good business plan would lead the
company onto the healthy and easy way of the future. Most of
the time, a good business plan would help the business owners
make good decisions and set a specific future goal for chasing.
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ACC560 Week 8 Homework:
Chapter 12: Planning for Capital Investments
ACC560 Week 9 Homework:
Chapter 13: Statement of Cash Flows