Overview of Financial Statements(I need help explaining the follow.pdfakopticals
Overview of Financial Statements
(I need help explaining the following and/or demonstrating it for my upcoming exam if anyone
could help me comprehend the concepts I would greatly appreciate it!!)
Describe and interpret the balance sheet, income statement, and statement of stockholder’s equity
Describe the relationship between current assets and current liabilities
Describe the difference between interest-bearing and non-interest-bearing liabilities
Explain the components of change on a statement of stockholder’s equity
Solution
Answer 1:
Balance Sheet:
Balance sheet is a financial statement that summarizes a company\'s assets, liabilities and
shareholders\' equity at a specific point in time. It is a Position Statement which give investors an
idea as to what the company owns and owes as well as the amount invested by shareholders. The
balance sheet adheres to the following formula: Assets = Liabilities + Shareholders\' Equity
Interpreting a Balance Sheet
The balance sheet is a snapshot, representing the state of a company\'s finances at a moment in
time. By itself, it cannot give a sense of the trends that are playing out over a longer period. For
this reason, the balance sheet should be compared with those of previous periods. A number of
ratios can be derived from the balance sheet, helping investors get a sense of how healthy a
company is. These include the debt-to-equity ratio and the acid-test ratio, along with many
others.
Income Statement:
An income statement also known as the \"profit and loss statement\" or \"statement of revenue
and expense\" is a financial statement that measures a company\'s financial performance over a
specific accounting period. Financial performance is assessed by giving a summary of how the
business incurs its revenues and expenses through both operating and non-operating activities. It
also shows the net profit or loss incurred over a specific accounting period, typically over a fiscal
quarter or year.
Interpreting Income Statement
The income statement is divided into two parts: the operating and non-operating sections. The
portion of the income statement that deals with operating items is interesting to investors and
analysts alike because this section discloses information about revenues and expenses that are a
direct result of the regular business operations. The non-operating items section discloses
revenue and expense information about activities that are not tied directly to a company\'s
regular operations.
Stateent of Stockholders\' equity
Stockholders\' equity is the money attributable to a business\' owners, often referred to as
shareholders. It is also known as \"net assets,\" since it is equivalent to the total assets of a
company minus its liabilities, that is, the debt it owes to non-shareholders. The statement of
shareholders\' equity details the changes within the equity section of the balance sheet over a
designated period of time. In other words, the statement of stockholder\'s equity is a b.
Overview of Financial Statements(I need help explaining the follow.pdfakopticals
Overview of Financial Statements
(I need help explaining the following and/or demonstrating it for my upcoming exam if anyone
could help me comprehend the concepts I would greatly appreciate it!!)
Describe and interpret the balance sheet, income statement, and statement of stockholder’s equity
Describe the relationship between current assets and current liabilities
Describe the difference between interest-bearing and non-interest-bearing liabilities
Explain the components of change on a statement of stockholder’s equity
Solution
Answer 1:
Balance Sheet:
Balance sheet is a financial statement that summarizes a company\'s assets, liabilities and
shareholders\' equity at a specific point in time. It is a Position Statement which give investors an
idea as to what the company owns and owes as well as the amount invested by shareholders. The
balance sheet adheres to the following formula: Assets = Liabilities + Shareholders\' Equity
Interpreting a Balance Sheet
The balance sheet is a snapshot, representing the state of a company\'s finances at a moment in
time. By itself, it cannot give a sense of the trends that are playing out over a longer period. For
this reason, the balance sheet should be compared with those of previous periods. A number of
ratios can be derived from the balance sheet, helping investors get a sense of how healthy a
company is. These include the debt-to-equity ratio and the acid-test ratio, along with many
others.
Income Statement:
An income statement also known as the \"profit and loss statement\" or \"statement of revenue
and expense\" is a financial statement that measures a company\'s financial performance over a
specific accounting period. Financial performance is assessed by giving a summary of how the
business incurs its revenues and expenses through both operating and non-operating activities. It
also shows the net profit or loss incurred over a specific accounting period, typically over a fiscal
quarter or year.
Interpreting Income Statement
The income statement is divided into two parts: the operating and non-operating sections. The
portion of the income statement that deals with operating items is interesting to investors and
analysts alike because this section discloses information about revenues and expenses that are a
direct result of the regular business operations. The non-operating items section discloses
revenue and expense information about activities that are not tied directly to a company\'s
regular operations.
Stateent of Stockholders\' equity
Stockholders\' equity is the money attributable to a business\' owners, often referred to as
shareholders. It is also known as \"net assets,\" since it is equivalent to the total assets of a
company minus its liabilities, that is, the debt it owes to non-shareholders. The statement of
shareholders\' equity details the changes within the equity section of the balance sheet over a
designated period of time. In other words, the statement of stockholder\'s equity is a b.
THE ANNUAL REPORTSPECIMEN FINANCIAL STATEMENTSPepsiCo.docxmattinsonjanel
THE ANNUAL REPORT
SPECIMEN FINANCIAL STATEMENTS:
PepsiCo, Inc.
Appendix A
The financial information herein is reprinted with permission from the PepsiCo, Inc. 2005 Annual
Report. The complete financial statements are available through a link at the book’s companion
website.
Once each year a corporation communicates to its stockholders and other interested
parties by issuing a complete set of audited financial statements. The annual report, as
this communication is called, summarizes the financial results of the company’s oper-
ations for the year and its plans for the future. Many annual reports are attractive, mul-
ticolored, glossy public relations pieces, containing pictures of corporate officers and
directors as well as photos and descriptions of new products and new buildings. Yet
the basic function of every annual report is to report financial information, almost all
of which is a product of the corporation’s accounting system.
The content and organization of corporate annual reports have become fairly
standardized. Excluding the public relations part of the report (pictures, products,
etc.), the following are the traditional financial portions of the annual report:
FINANCIAL HIGHLIGHTS
Companies usually present the financial highlights section inside the front cover of
the annual report or on its first two pages. This section generally reports the total
or per share amounts for five to ten financial items for the current year and one or
more previous years. Financial items from the income statement and the balance
sheet that typically are presented are sales, income from continuing operations, net
income, net income per share, net cash provided by operating activities, dividends
per common share, and the amount of capital expenditures. The financial highlights
section from PepsiCo’s Annual Report is shown on page A-2.
A1
• Financial Highlights
• Letter to the Stockholders
• Management’s Discussion and
Analysis
• Financial Statements
• Notes to the Financial Statements
• Management’s Report on Internal
Control
• Management Certification of
Financial Statements
• Auditor’s Report
• Supplementary Financial Information
In this appendix we illustrate current financial reporting with a comprehensive
set of corporate financial statements that are prepared in accordance with gener-
ally accepted accounting principles and audited by an international independent
certified public accounting firm. We are grateful for permission to use the actual fi-
nancial statements and other accompanying financial information from the annual
report of a large, publicly held company, PepsiCo, Inc.
LETTER TO THE STOCKHOLDERS
A2 Appendix A Specimen Financial Statements: PepsiCo, Inc.
Nearly every annual report contains a letter to the stockholders from the chairman
of the board or the president, or both. This letter typically discusses the company’s
accomplishments during the past year and highlights significant events such as
mergers and acquis ...
How do you record different types of accounting doc 6.docxintel-writers.com
Accounting changes
refer to alterations made in accounting principles, estimates, or reporting methods by an organization. Recording different types of accounting changes is essential for maintaining accurate financial records and providing transparency to stakeholders. Here is a discussion on how to record different types of accounting changes:
Change in Accounting Principles: A change in accounting principles occurs when an organization switches from one generally accepted accounting principle (GAAP) to another. When this change takes place, the new principle is adopted and consistently applied for future financial reporting. The organization must disclose the nature of the change, the reasons for the change, and the financial impact of the change in the financial statements. The impact of the change is typically recorded as an adjustment to the opening balance of retained earnings or other appropriate equity accounts.
Change in Accounting Estimates: Accounting estimates are approximations made by management for uncertain amounts or future events, such as the useful life of an asset, the allowance for doubtful accounts, or the valuation of inventory. If there is a change in an accounting estimate that affects the current and future periods, the change is typically applied prospectively. This means that the adjustment is made in the current period and does not require restating prior financial statements. The organization should disclose the nature of the change and the effect on the financial statements in the notes to the financial statements.
Change in Reporting Methods: A change in reporting methods refers to a change in how financial information is presented or classified in the financial statements. For example, changing the format of the income statement or reclassifying certain items from one category to another. Such changes should be applied retrospectively, meaning that prior financial statements are restated to reflect the new reporting method.
THE ANNUAL REPORTSPECIMEN FINANCIAL STATEMENTSPepsiCo.docxmattinsonjanel
THE ANNUAL REPORT
SPECIMEN FINANCIAL STATEMENTS:
PepsiCo, Inc.
Appendix A
The financial information herein is reprinted with permission from the PepsiCo, Inc. 2005 Annual
Report. The complete financial statements are available through a link at the book’s companion
website.
Once each year a corporation communicates to its stockholders and other interested
parties by issuing a complete set of audited financial statements. The annual report, as
this communication is called, summarizes the financial results of the company’s oper-
ations for the year and its plans for the future. Many annual reports are attractive, mul-
ticolored, glossy public relations pieces, containing pictures of corporate officers and
directors as well as photos and descriptions of new products and new buildings. Yet
the basic function of every annual report is to report financial information, almost all
of which is a product of the corporation’s accounting system.
The content and organization of corporate annual reports have become fairly
standardized. Excluding the public relations part of the report (pictures, products,
etc.), the following are the traditional financial portions of the annual report:
FINANCIAL HIGHLIGHTS
Companies usually present the financial highlights section inside the front cover of
the annual report or on its first two pages. This section generally reports the total
or per share amounts for five to ten financial items for the current year and one or
more previous years. Financial items from the income statement and the balance
sheet that typically are presented are sales, income from continuing operations, net
income, net income per share, net cash provided by operating activities, dividends
per common share, and the amount of capital expenditures. The financial highlights
section from PepsiCo’s Annual Report is shown on page A-2.
A1
• Financial Highlights
• Letter to the Stockholders
• Management’s Discussion and
Analysis
• Financial Statements
• Notes to the Financial Statements
• Management’s Report on Internal
Control
• Management Certification of
Financial Statements
• Auditor’s Report
• Supplementary Financial Information
In this appendix we illustrate current financial reporting with a comprehensive
set of corporate financial statements that are prepared in accordance with gener-
ally accepted accounting principles and audited by an international independent
certified public accounting firm. We are grateful for permission to use the actual fi-
nancial statements and other accompanying financial information from the annual
report of a large, publicly held company, PepsiCo, Inc.
LETTER TO THE STOCKHOLDERS
A2 Appendix A Specimen Financial Statements: PepsiCo, Inc.
Nearly every annual report contains a letter to the stockholders from the chairman
of the board or the president, or both. This letter typically discusses the company’s
accomplishments during the past year and highlights significant events such as
mergers and acquis ...
How do you record different types of accounting doc 6.docxintel-writers.com
Accounting changes
refer to alterations made in accounting principles, estimates, or reporting methods by an organization. Recording different types of accounting changes is essential for maintaining accurate financial records and providing transparency to stakeholders. Here is a discussion on how to record different types of accounting changes:
Change in Accounting Principles: A change in accounting principles occurs when an organization switches from one generally accepted accounting principle (GAAP) to another. When this change takes place, the new principle is adopted and consistently applied for future financial reporting. The organization must disclose the nature of the change, the reasons for the change, and the financial impact of the change in the financial statements. The impact of the change is typically recorded as an adjustment to the opening balance of retained earnings or other appropriate equity accounts.
Change in Accounting Estimates: Accounting estimates are approximations made by management for uncertain amounts or future events, such as the useful life of an asset, the allowance for doubtful accounts, or the valuation of inventory. If there is a change in an accounting estimate that affects the current and future periods, the change is typically applied prospectively. This means that the adjustment is made in the current period and does not require restating prior financial statements. The organization should disclose the nature of the change and the effect on the financial statements in the notes to the financial statements.
Change in Reporting Methods: A change in reporting methods refers to a change in how financial information is presented or classified in the financial statements. For example, changing the format of the income statement or reclassifying certain items from one category to another. Such changes should be applied retrospectively, meaning that prior financial statements are restated to reflect the new reporting method.
SPECIFIC LEARNING OBJECTIVES:
At the end of this module you MUST be able to:
1. Identify the tools that a systems analyst could use.
2. Describe and differentiate each tool.
3. Use the appropriate tool for a certain and different situation.
TOPIC:
1. Systems development life cycle (SDLC)
2. Planning phase
3. Analysis phase
4. Design phase
5. Development phase
6. Implementation phase
7. Structured systems analysis
8. System model
9. Tools of structured analysis
SPECIFIC LEARNING OBJECTIVES:
At the end of this module you MUST be able to:
1. Identify the nature of systems.
2. Define what a system is.
3. Differentiate the types and classifications of the system.
4. Discuss different business systems and information systems.
5. Give an overview of system fundamentals and the general system
principles.
6. Identify who are the players in the system's game.
TOPIC:
1. The nature of systems
2. System definition
3. Classification
4. Types
5. Business systems and Information systems
6. System fundamentals
7. General systems principles
8. Players in the system's game
SPECIFIC LEARNING OBJECTIVES:
At the end of this module you MUST be able to:
1. Give an overview of the analysis.
2. Define what analysis is and systems analysis.
3. Lists the advantages and limitations of systems analysis.
4. Cite the responsibilities of the systems analysts.
5. Identify the scientific method of problem-solving.
TOPIC:
1. Overview of analysis
2. Definition of analysis
3. The study of systems analysis
4. Definition systems analysis
5. Advantages of systems analysis
6. Limitations of systems analysis
7. Responsibilities of the systems analyst
8. The scientific method of problem-solving
SPECIFIC LEARNING OBJECTIVES:
At the end of this module you MUST be able to:
1. Identify the different feasibility studies that could be used by the systems
analyst.
2. Describe and differentiate each feasibility study.
3. Use and apply a certain and appropriate feasibility study according to the
needs of the organization’s information system being developed.
TOPIC:
1. Technical feasibility
2. Operational feasibility
3. Economic feasibility
4. Cost-benefit study
5. Market analysis
SPECIFIC LEARNING OBJECTIVES:
At the end of this module you MUST be able to:
1. Identify the tools that a systems analyst could use.
2. Describe and differentiate each tool.
3. Use the appropriate tool for a certain and different situation.
TOPIC:
1. Systems development life cycle (SDLC)
2. Planning phase
3. Analysis phase
4. Design phase
5. Development phase
6. Implementation phase
7. Structured systems analysis
8. System model
9. Tools of structured analysis
SPECIFIC LEARNING OBJECTIVES:
At the end of this module you MUST be able to:
1. Identify the tools that a systems analyst could use.
2. Describe and differentiate each tool.
3. Use the appropriate tool for a certain and different situation.
TOPIC:
1. Systems development life cycle (SDLC)
2. Planning phase
3. Analysis phase
4. Design phase
5. Development phase
6. Implementation phase
7. Structured systems analysis
8. System model
9. Tools of structured analysis
Normal Labour/ Stages of Labour/ Mechanism of LabourWasim Ak
Normal labor is also termed spontaneous labor, defined as the natural physiological process through which the fetus, placenta, and membranes are expelled from the uterus through the birth canal at term (37 to 42 weeks
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
4. Purpose & Importance
Statement of changes in equity helps users of financial statement
to identify the factors that cause a change in the owners' equity
over the accounting periods.
discloses significant information about equity reserves that is not
presented separately elsewhere in the financial statements which
may be useful in understanding the nature of change in equity
reserves.
5. Purpose & Importance
Example
share capital issue and redemption during the period, the
effects of changes in accounting policies and correction of
prior period errors, gains and losses recognized outside
income statement, dividends declared and bonus shares
issued during the period.
6. COMPONENTS
Opening Balance
represents the balance of shareholders' equity reserves at
the start of the comparative reporting period as reflected
in the prior period's statement of financial position.
unadjusted in respect of the correction of prior period errors
rectified in the current period and also the effect of changes in
accounting policy implemented during the year as these are
presented separately in the statement of changes in equity
7. COMPONENTS
Effects of Changes in Accounting Policies
Since changes in accounting policies are applied
retrospectively, an adjustment is required in
stockholders' reserves at the start of the
comparative reporting period to restate the opening
equity to the amount that would be arrived if the
new accounting policy had always been applied.
8. COMPONENTS
Effects of Correction of Prior Period Error
must be presented separately in the statement
of changes in equity as an adjustment to
opening reserves.
may not be netted off against the opening balance of the
equity reserves so that the amounts presented in current
period statement might be easily reconciled and traced
from prior period financial statements.
9. COMPONENTS
Restated Balance
represents the equity attributable to stockholders at
the start of the comparative period after the
adjustments in respect of changes in accounting
policies and correction of prior period errors as
explained above.
10. COMPONENTS
Changes in Share Capital
Issue of further share capital during the period must
be added in the statement of changes in equity
whereas redemption of shares must be deducted
therefrom. The effects of issue and redemption of
shares must be presented separately for share
capital reserve and share premium reserve.
11. COMPONENTS
Dividends
Dividend payments issued or
announced during the period must be
deducted from shareholder equity as
they represent distribution of wealth
attributable to stockholders.
12. COMPONENTS
Income / Loss for the Period
This represents the profit or loss
attributable to shareholders during the
period as reported in the income
statement.
13. COMPONENTS
Changes in Revaluation Reserve
Revaluation gains and losses recognized during the period
must be presented in the statement of changes in equity
to the extent that they are recognized outside the income
statement.
Revaluation gains recognized in income statement due to reversal
of previous impairment losses however shall not be presented
separately in the statement of changes in equity as they would
already be incorporated in the profit or loss for the period.
14. COMPONENTS
Other Gains and Losses
Any other gains and losses not recognized
in the income statement may be presented
in the statement of changes in equity such
as actuarial gains and losses arising from
the application of IAS.
15. COMPONENTS
Closing Balance
This represents the balance of
shareholders' equity reserves at the
end of the reporting period as
reflected in the statement of financial
position.
16.
17.
18. E. Mortiz, lawyer
STATEMENT OF EQUITY
March 31, 2019
Add:
Beginning Balance
Net Income
Net Capital
E. Mortiz, Personal
Ending Capital, March 31
0
8000
8849
800
8049
E. Mortiz, Capital
849
Less:
