22.1 The role of Analysis and Interpretation
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This document discusses the role of analysis and interpretation in accounting. It explains that the accounting process results in the production of an income statement, cash flow statement, and balance sheet. However, the key purpose of these reports is to be useful for decision making. The reports must be analyzed and interpreted to extract relevant information that can help managers and other stakeholders make informed business decisions.
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This document discusses financial management and its key functions. It outlines that financial management deals with planning and controlling a firm's financial resources and decisions. There are three main finance functions: investment decisions about what assets a firm invests in, financing decisions about raising funds, and dividend decisions about distributing profits to shareholders. The document focuses on investment decisions, explaining the differences between capital budgeting for long-term assets versus working capital management for short-term assets. It also briefly discusses financing and dividend decisions.
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This document provides an overview of key concepts in financial accounting and analysis including:
- The three principal financial statements: balance sheet, income statement, and statement of cash flows.
- Key concepts in financial accounting like revenue recognition, expense matching, and accrual basis accounting.
- Financial ratio analysis and how it is used to evaluate performance, risk, growth potential, and more by comparing values over time, to industry norms, competitors, and more.
- The value of financial statement analysis for users like investors, creditors, and other stakeholders.
Analysis of financial statements.
The document discusses various types of financial statements and analysis techniques. It provides information on income statements, balance sheets, cash flow statements, and their components. It also describes various analysis methods used to evaluate financial statements such as comparative statements, trend analysis, and ratio analysis including liquidity, activity, solvency, and profitability ratios. The document aims to explain financial statements and the analysis techniques used to evaluate the financial position and performance of a business.
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Oracle General Ledger is a comprehensive financial management solution that enhances financial controls, reporting, and data collection across an enterprise. It integrates with subledger modules like payables, receivables, assets, and inventory. Key functionality includes accounting setup, journals, consolidation of financial data from multiple legal entities, security controls, and financial reports.
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This document provides an overview of key concepts in financial management. It discusses the goals of a corporation as maximizing profits and shareholder wealth. It also describes the relationship between finance and accounting and economics. The document outlines the basic activities of a financial manager in making investment and financing decisions. It discusses the agency issue where managers' personal goals may conflict with maximizing shareholder wealth.
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Chapter 1- Financial Statements An Overview.pptx
The presentation covers the basics of financial statements, namely how to read financial statements and how to interpret them
FA ch1.pptx
1. The document discusses the conceptual framework for financial reporting, which provides the objectives and fundamental concepts that guide standard setting and financial reporting.
2. The conceptual framework consists of three levels: the objectives of financial reporting, the qualitative characteristics and elements that comprise fundamental concepts, and recognition and measurement concepts as operational guidelines.
3. The basic objective is to provide financial information to present and potential investors, lenders and creditors that is useful for decision making about allocating resources to the entity. Key fundamental concepts include relevance, faithful representation, comparability, and understandability as qualities of useful financial information.
Ch01 financial accounting
1. Accounting is defined as a service activity, descriptive discipline, and information system that provides quantitative financial information to interested parties to assist with economic decision making. The objective of accounting is to be useful for assessing resource allocation.
2. Accounting standards have developed through the work of standard setting bodies like the IASB and FASB to meet the needs of external users. The IASB issues International Financial Reporting Standards using a robust due process and seeks input from various stakeholders.
3. There are various users of accounting information like managers, investors, creditors, regulators and more that influence the development of accounting standards. Standards aim to close the expectations gap between what the public thinks accountants can do and what
10.2 Why are ledgers closed?
Revenue and expense accounts are closed at the end of each reporting period by resetting their balances to zero. This allows the firm to 1) determine its net profit for the period, 2) reset balances so net profit can be calculated for the next period, and 3) complete the accounting cycle and prepare required financial reports. Closing is necessary to comply with accounting principles such as the reporting period principle and relevance, which require separating transactions and financial results into discrete accounting periods.
Module
This document provides the course plan for Accounting for Management (103) at Punjab College of Technical Education, Ludhiana. The objective of the course is to help students understand and analyze financial statements to evaluate financial position and performance and aid future decision making. The course spans 57 lectures covering topics such as accounting principles, preparation of financial statements, ratio analysis, cost accounting, and recent developments. Student evaluation includes assignments, presentations, tests, and internal assessments.
Financial Accounting
This document provides an overview of financial accounting and financial statements. It discusses the purpose and uses of accounting information for internal and external users of different types of businesses. The four main types of financial statements are described - the statement of income, statement of changes in equity, statement of financial position, and statement of cash flows. The document also explains the key elements and purpose of each financial statement.
Chapter-2.ppt
This document discusses key financial statements and ratio analysis. It begins by outlining the four key financial statements - the income statement, balance sheet, statement of retained earnings, and statement of cash flows. It then discusses ratio analysis and different types of ratios used to analyze a company's liquidity, activity, financial leverage, profitability, and market value. The document walks through an example ratio analysis of a company called Bartlett Company. It concludes by explaining the DuPont system of analysis, which relates a company's return on assets and return on equity.
DJones Resume 080116
Deborah Jones has over 20 years of accounting experience, most recently as General Accounting Manager at McKesson Corporation where she managed month-end closes and reviewed balance sheets and income statements. Prior to that, she held inventory accounting and general accounting manager roles at McKesson, overseeing processes like inventory balancing, reserve calculations, and SOX compliance. She demonstrates strong skills in financial analysis, systems implementation, and process improvement.
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Epgp 09 10 -fra term 1 - end term submission - rajendra inani
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22.1 The role of Analysis and Interpretation
- 1. 22.1 THE ROLE OF ANALYSIS AND INTERPRETATION
- 2. © Michael Allison, Trinity Grammar School. Author’s permission required for external use The accounting process so far… 22.1 THE ROLE OF ANALYSIS AND INTERPRETATION Transaction Transaction Transaction Transaction Transaction Transaction Transaction Transaction Special Journals General Ledger Trial Balance Balance-Day Adjustments Adjusted Trial Balance Income Statement Cash Flow Statement Balance Sheet
- 3. © Michael Allison, Trinity Grammar School. Author’s permission required for external use At the end of the accounting process the 3 financial reports are produced Now what? What is the purpose of producing these reports? Remember the key qualitative characteristic of Accounting… Income Statement Cash Flow Statement Balance Sheet Relevance The information produced by accountants must be useful for decision-makingUse the reports to… MAKE DECISIONS 22.1 THE ROLE OF ANALYSIS AND INTERPRETATION
- 4. © Michael Allison, Trinity Grammar School. Author’s permission required for external use TASK In-class Homework SQ1 X SQ2 X