The document discusses financial statements and ratios. It provides an overview of the three primary financial statements - the income statement, balance sheet, and statement of cash flows. It describes the key information contained in each statement. The document also discusses different types of financial ratios - liquidity ratios, solvency ratios, and profitability ratios. It explains what each ratio type measures and how they are used to analyze a company's financial performance and position.
What are the four 4 major financial statements.pdfsarikabangimatam
Financial statements summarize a company's business activities, financial performance, financial position, and cash flows through a series of written reports. All reports should be structured to convey relevant data in an easily digestible manner. Specifically, a cliff note on the financial performance of the Business Accountants. These reports typically provide a snapshot of a specific period of time and typically represent activity over a specific month, year, or specific time period. These financial statements are critical to understanding your business and performance.
Accounting for Managers Assignment1The purpose of th.docxdaniahendric
Accounting for Managers Assignment
1
The purpose of the financial statements is to provide information about a company.
There are four main financial statements; namely income statement, statement of cash
flow, statement of financial performance and statement of changes in equity which
provides assistant to external users in making informed decisions about the company
such as resource allocation like investment and financing. (IAS 1)
Question a
The income statement also known as the statement of profit or loss depicts the
performance of the company by showing the revenue generated, less the expenses
incurred to obtain the profits or losses during an accounting period which would should
the performance of the company. If the revenue of a company over a period of time is
higher than the expenses, there will be a profit. Similarly, if the revenue of a company
over a period of time is lower than the expenses, the company will incur a loss. The
income statement may be disclosed by monthly, quarterly, or yearly which helps external
users to predict the company’s future performance.
Few examples of external users who use the income statement are shareholders,
investors, and creditors or lenders. Investors use the income statement to determine if
the company provides a good return on their investment and thus, make decisions such
as whether to sell or keep the shares they own in the company. Good performance can
generate high revenue leading to high profits, which in turn results in higher dividend for
the investors. Alternatively, low performance leading to lower dividends might not attract
investors’ attention and may sequentially result in investors selling their shares.
Creditors or lenders will evaluate base on the income statement whether the company
has a good financial standing as they have to take into account the company’s ability to
pay back the loan and interest. Lenders are more liable to loan the company if the
company’s primary activities involves equity financing, as they have a higher assurance
that the loan can be repaid. Equity financing refers to raising capital from selling shares
of the company to the investors. Alternatively, if the company’s primary activities involves
debt financing whereby the company takes on more debt in order to finance its
operations, the lenders might not be keen to finance the company as there is no
assurance of the company’s ability to pay off all its loans and interests.
The statement of comprehensive income highlights the change in equity of the company
derived from the operating and financial events are transacted during the period. It
https://www.coursehero.com/file/55819661/Bridging-Accounting-for-Managerspdf/
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https://www.coursehero.com/file/55819661/Bridging-Accounting-for-Managerspdf/
Accounting for Managers Assignment
2
begins with the profit or loss derived from the income ...
Accounting for Managers Assignment1The purpose of th.docxkatherncarlyle
Accounting for Managers Assignment
1
The purpose of the financial statements is to provide information about a company.
There are four main financial statements; namely income statement, statement of cash
flow, statement of financial performance and statement of changes in equity which
provides assistant to external users in making informed decisions about the company
such as resource allocation like investment and financing. (IAS 1)
Question a
The income statement also known as the statement of profit or loss depicts the
performance of the company by showing the revenue generated, less the expenses
incurred to obtain the profits or losses during an accounting period which would should
the performance of the company. If the revenue of a company over a period of time is
higher than the expenses, there will be a profit. Similarly, if the revenue of a company
over a period of time is lower than the expenses, the company will incur a loss. The
income statement may be disclosed by monthly, quarterly, or yearly which helps external
users to predict the company’s future performance.
Few examples of external users who use the income statement are shareholders,
investors, and creditors or lenders. Investors use the income statement to determine if
the company provides a good return on their investment and thus, make decisions such
as whether to sell or keep the shares they own in the company. Good performance can
generate high revenue leading to high profits, which in turn results in higher dividend for
the investors. Alternatively, low performance leading to lower dividends might not attract
investors’ attention and may sequentially result in investors selling their shares.
Creditors or lenders will evaluate base on the income statement whether the company
has a good financial standing as they have to take into account the company’s ability to
pay back the loan and interest. Lenders are more liable to loan the company if the
company’s primary activities involves equity financing, as they have a higher assurance
that the loan can be repaid. Equity financing refers to raising capital from selling shares
of the company to the investors. Alternatively, if the company’s primary activities involves
debt financing whereby the company takes on more debt in order to finance its
operations, the lenders might not be keen to finance the company as there is no
assurance of the company’s ability to pay off all its loans and interests.
The statement of comprehensive income highlights the change in equity of the company
derived from the operating and financial events are transacted during the period. It
https://www.coursehero.com/file/55819661/Bridging-Accounting-for-Managerspdf/
Th
is
stu
dy
re
so
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ce
w
as
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ou
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https://www.coursehero.com/file/55819661/Bridging-Accounting-for-Managerspdf/
Accounting for Managers Assignment
2
begins with the profit or loss derived from the income.
FINANCIAL INFORMATION 1 Financial InformatChereCheek752
FINANCIAL INFORMATION 1
Financial Information
Ja’Niya Ladson
Department of Business and Entrepreneurship
BA130OL- Introduction to Business
Dr. Wilton Stewart
April 25, 2021
Grade Breakdown
>Communication: 20.00 points out of 20 points
>Analysis: 20.00 points out of 20 points
>Application: 18.50 points out of 20 points
>Effective Use: 17.50 points out of 20 possible points (error in APA format)
>Style: 16.75 points out of 20 possible points.
Remarks:
• Errors noted with Source entries in reference list. See professor’s comments.
• Improper heading levels throughout document. See professor’s comments.
FINANCIAL INFORMATION 2
Introduction
Understanding the financial information of an organization is essential before making a
decision of the company to purchase. Financial information can be extracted from the financial
statement of the company. The paper addresses questions about financial statements.
How a balance sheet differs from an income statement?
The first difference is based on reporting. A balance sheet reports Assets, Liabilities, and
Equity while an income statement represents revenue and expenses (Griffin & Mahajan, 2019).
The second difference is based on timing. The balance sheet indicates what an entity owns and
owes at a particular time unlike the income statement which indicates the total expense and
revenue for a time period. Besides, a balance sheet is utilized by entities to identify whether the
company has adequate assets to satisfy financial obligations while an income statement is
utilized to analyze the performance and to determine whether there exist any financial issues that
require adjustment.
The term owners’ equity
It is the owners' rights to the assets of a company. It is the portion of the value of an
entity’s asset that can be claimed by the owners (Fabozzi et al., 2021). It is merely what remains
for the owners after deducting all liabilities from the company's assets. It is calculated as TA –
TL. Some of the components of owners' equity are retained earnings, treasury stock, and
outstanding shares.
Difference between FA and TA
FA are long-term and tangible assets used in a business that are grouped as PPE. These
are the assets that the company does not expect to sell or consume within an accounting period.
Some of the fixed assets are buildings, furniture, and equipment that depreciates over time,
Commented [WS1]: This should be a level II heading ➔
see article 2.27 on pages 47 – 49 of APA Manual.
Commented [WS2]: See prior comment – This is not in
Level II heading format
Commented [WS3]: See prior comment
Commented [WS4]: Acronyms are to be defined on first
use in an academic document in accordance with APA
standards.
FINANCIAL INFORMATION 3
except land. In contrast, total assets are th ...
What are the four 4 major financial statements.pdfsarikabangimatam
Financial statements summarize a company's business activities, financial performance, financial position, and cash flows through a series of written reports. All reports should be structured to convey relevant data in an easily digestible manner. Specifically, a cliff note on the financial performance of the Business Accountants. These reports typically provide a snapshot of a specific period of time and typically represent activity over a specific month, year, or specific time period. These financial statements are critical to understanding your business and performance.
Accounting for Managers Assignment1The purpose of th.docxdaniahendric
Accounting for Managers Assignment
1
The purpose of the financial statements is to provide information about a company.
There are four main financial statements; namely income statement, statement of cash
flow, statement of financial performance and statement of changes in equity which
provides assistant to external users in making informed decisions about the company
such as resource allocation like investment and financing. (IAS 1)
Question a
The income statement also known as the statement of profit or loss depicts the
performance of the company by showing the revenue generated, less the expenses
incurred to obtain the profits or losses during an accounting period which would should
the performance of the company. If the revenue of a company over a period of time is
higher than the expenses, there will be a profit. Similarly, if the revenue of a company
over a period of time is lower than the expenses, the company will incur a loss. The
income statement may be disclosed by monthly, quarterly, or yearly which helps external
users to predict the company’s future performance.
Few examples of external users who use the income statement are shareholders,
investors, and creditors or lenders. Investors use the income statement to determine if
the company provides a good return on their investment and thus, make decisions such
as whether to sell or keep the shares they own in the company. Good performance can
generate high revenue leading to high profits, which in turn results in higher dividend for
the investors. Alternatively, low performance leading to lower dividends might not attract
investors’ attention and may sequentially result in investors selling their shares.
Creditors or lenders will evaluate base on the income statement whether the company
has a good financial standing as they have to take into account the company’s ability to
pay back the loan and interest. Lenders are more liable to loan the company if the
company’s primary activities involves equity financing, as they have a higher assurance
that the loan can be repaid. Equity financing refers to raising capital from selling shares
of the company to the investors. Alternatively, if the company’s primary activities involves
debt financing whereby the company takes on more debt in order to finance its
operations, the lenders might not be keen to finance the company as there is no
assurance of the company’s ability to pay off all its loans and interests.
The statement of comprehensive income highlights the change in equity of the company
derived from the operating and financial events are transacted during the period. It
https://www.coursehero.com/file/55819661/Bridging-Accounting-for-Managerspdf/
Th
is
stu
dy
re
so
ur
ce
w
as
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ar
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https://www.coursehero.com/file/55819661/Bridging-Accounting-for-Managerspdf/
Accounting for Managers Assignment
2
begins with the profit or loss derived from the income ...
Accounting for Managers Assignment1The purpose of th.docxkatherncarlyle
Accounting for Managers Assignment
1
The purpose of the financial statements is to provide information about a company.
There are four main financial statements; namely income statement, statement of cash
flow, statement of financial performance and statement of changes in equity which
provides assistant to external users in making informed decisions about the company
such as resource allocation like investment and financing. (IAS 1)
Question a
The income statement also known as the statement of profit or loss depicts the
performance of the company by showing the revenue generated, less the expenses
incurred to obtain the profits or losses during an accounting period which would should
the performance of the company. If the revenue of a company over a period of time is
higher than the expenses, there will be a profit. Similarly, if the revenue of a company
over a period of time is lower than the expenses, the company will incur a loss. The
income statement may be disclosed by monthly, quarterly, or yearly which helps external
users to predict the company’s future performance.
Few examples of external users who use the income statement are shareholders,
investors, and creditors or lenders. Investors use the income statement to determine if
the company provides a good return on their investment and thus, make decisions such
as whether to sell or keep the shares they own in the company. Good performance can
generate high revenue leading to high profits, which in turn results in higher dividend for
the investors. Alternatively, low performance leading to lower dividends might not attract
investors’ attention and may sequentially result in investors selling their shares.
Creditors or lenders will evaluate base on the income statement whether the company
has a good financial standing as they have to take into account the company’s ability to
pay back the loan and interest. Lenders are more liable to loan the company if the
company’s primary activities involves equity financing, as they have a higher assurance
that the loan can be repaid. Equity financing refers to raising capital from selling shares
of the company to the investors. Alternatively, if the company’s primary activities involves
debt financing whereby the company takes on more debt in order to finance its
operations, the lenders might not be keen to finance the company as there is no
assurance of the company’s ability to pay off all its loans and interests.
The statement of comprehensive income highlights the change in equity of the company
derived from the operating and financial events are transacted during the period. It
https://www.coursehero.com/file/55819661/Bridging-Accounting-for-Managerspdf/
Th
is
stu
dy
re
so
ur
ce
w
as
sh
ar
ed
v
ia
C
ou
rs
eH
er
o.
co
m
https://www.coursehero.com/file/55819661/Bridging-Accounting-for-Managerspdf/
Accounting for Managers Assignment
2
begins with the profit or loss derived from the income.
FINANCIAL INFORMATION 1 Financial InformatChereCheek752
FINANCIAL INFORMATION 1
Financial Information
Ja’Niya Ladson
Department of Business and Entrepreneurship
BA130OL- Introduction to Business
Dr. Wilton Stewart
April 25, 2021
Grade Breakdown
>Communication: 20.00 points out of 20 points
>Analysis: 20.00 points out of 20 points
>Application: 18.50 points out of 20 points
>Effective Use: 17.50 points out of 20 possible points (error in APA format)
>Style: 16.75 points out of 20 possible points.
Remarks:
• Errors noted with Source entries in reference list. See professor’s comments.
• Improper heading levels throughout document. See professor’s comments.
FINANCIAL INFORMATION 2
Introduction
Understanding the financial information of an organization is essential before making a
decision of the company to purchase. Financial information can be extracted from the financial
statement of the company. The paper addresses questions about financial statements.
How a balance sheet differs from an income statement?
The first difference is based on reporting. A balance sheet reports Assets, Liabilities, and
Equity while an income statement represents revenue and expenses (Griffin & Mahajan, 2019).
The second difference is based on timing. The balance sheet indicates what an entity owns and
owes at a particular time unlike the income statement which indicates the total expense and
revenue for a time period. Besides, a balance sheet is utilized by entities to identify whether the
company has adequate assets to satisfy financial obligations while an income statement is
utilized to analyze the performance and to determine whether there exist any financial issues that
require adjustment.
The term owners’ equity
It is the owners' rights to the assets of a company. It is the portion of the value of an
entity’s asset that can be claimed by the owners (Fabozzi et al., 2021). It is merely what remains
for the owners after deducting all liabilities from the company's assets. It is calculated as TA –
TL. Some of the components of owners' equity are retained earnings, treasury stock, and
outstanding shares.
Difference between FA and TA
FA are long-term and tangible assets used in a business that are grouped as PPE. These
are the assets that the company does not expect to sell or consume within an accounting period.
Some of the fixed assets are buildings, furniture, and equipment that depreciates over time,
Commented [WS1]: This should be a level II heading ➔
see article 2.27 on pages 47 – 49 of APA Manual.
Commented [WS2]: See prior comment – This is not in
Level II heading format
Commented [WS3]: See prior comment
Commented [WS4]: Acronyms are to be defined on first
use in an academic document in accordance with APA
standards.
FINANCIAL INFORMATION 3
except land. In contrast, total assets are th ...
This is to certify that the main project report entitled A Study on “FINANCIAL
ANALYSIS” with reference to NAGA HANUMAN SOLVENT OIL, PVT.LYD, BHIMADOL.”
submitted to Jawaharlal Nehru University in partial fulfillment of the requirement for the award
of the degree of Master of Business Administration (MBA), is a original work carried out by me
and that it has not been submitted to any other university/institute for the award of any degree or
diploma.
How Do you Differentiate in Financial Accounting and Management Accounting?www.assignmentdesk.co.uk
Financial and management accounting is done by undertaking various measures. In this document we have explained about various financial and management accounting parameters by which they both can be differentiated.
https://www.assignmentdesk.co.uk/finance-assignment-help
Ashford 5: - Week 4 - Instructor Guidance
"The statement of activities is the not-for-profit Organization’s version of an income statement. This statement shows revenues, expenses and realized and unrealized gains and losses for the not-for-profit organization. A not-for-profit Organization is different and unique from private for-profit entities in that is lacks the ‘Ownership’ attribute, which means they do not issue stock that can be bought, sold or traded (Marsh & Fischer, 2011). Because of the nature of revenue from donations, which have strings attached sometimes, it is required that changes in net assets be reported by class. The different classes are, Temporarily Restricted, Permanently Restricted and Unrestricted (Williams, 1996). This requirement is a part of the Financial Accounting Standards Board (FASB) Pronouncement 117 (FAS-117) which was passed in 1993. The financials of NFP organizations have to report in compliance with FAS-117 in order to adhere to Generally Accepted Accounting Principles, or GAAP.
The Statement of Activities is one of three required financial statements that must be prepared by not-for-profit organizations. The other two statements are the Statement of Financial Position and the Statement of Cash Flows. The statement of activities also ties to the statement of financial position. The change in net assets shown on the statement of activities can be added to the balance of assets at the beginning of the year, and should match the total net assets figure at the end of the year shown in the statement of financial position.
A statement of activities is supposed to clearly show changes in net assets by category. The Permanently Restricted category is for endowments that are required to be held in perpetuity. Income from restricted assets can usually be used for general operations and is classified as additions to unrestricted assets. Temporarily restricted funds can be conditionally restricted or time restricted. This means if someone donates to a NFP organization with the provision that the money be used for a specific purpose, such as capital expenditures, these funds are restricted until the condition has been met. Some donations are restricted by time, for example, money donated to be used for operations in 2016 would be temporarily restricted and cannot be used until that time. At the time the condition, or restriction has been satisfied, the assets are then re-classified, increasing unrestricted assets and decreasing temporarily restricted assets. The statement of activities shows movement of funds from class to class over a period of time (Finkler, Purtell, Calabrese, & Smith, 2013).
The statement of activities was introduced as a requirement for NFP organizations to make their reporting uniform in a way that outside users can understand financials of different NFPs and to make them comparable. This statement is also useful for internal budgeting purposes so that entities know what mon ...
The preparation of financial statements is an important aspect of an organization’s financial management, recording and reporting on financial transactions and activities.
Financial Statement Preparation in New York provides a detailed picture of a company’s financial performance, position, and cash flow to support decision making and financial analysis.
The preparation of relevant financial statements requires a thorough understanding of accounting principles, rules and regulations, as well as attention to detail and accuracy in the recording and reporting of financial statements.
Steps in financial statement preparation.
Running head MANAGERIAL ACCOUNTING 1MANAGERIAL ACCOUNTING.docxwlynn1
Running head: MANAGERIAL ACCOUNTING
1
MANAGERIAL ACCOUNTING
2
Managerial Accounting
Accounting can be defined as the procedure of keeping monetary financial records. Accounting can be group as financial and managerial accounting. For businesses to be successful, they need to be having both managerial and financial accounting experts. Impeccable managerial and financial bookkeeping are important to the progress and constant survival of any corporate. Structurally, economically, and lawfully, bookkeeping is an essential section in any institute, and the necessity for an extremely skilled accounting squad is unconditionally crucial. Despite the similarities between financial and managerial accounting, there are also differences between them.
The managerial accounting works through measuring, analyzing and reporting monetary and non-monetary information that aids directors to make judgements to accomplish the objectives of an organization. Managerial accounting emphasizes on the internal broadcasting and is not regulated by generally accepted accounting principles (GAAP). Management accounting is known for its much efforts to focus on the future rather than paying much attention to what happened in the past (Kinicki & Fugate, 2016). This type of accounting is so influential to the performance of directors and other workers as opposed to principally reporting financial events. There are no principles which guide the operations of management accounting.
Management accounting permits executives to charge attention on owners’ principal to aid judge a division’s presentation, although this may not be allowed by generally accepted accounting principles. Managerial accounting comprises assets or liabilities which may not be recognized by generally accepted accounting principles and it makes use of asset or liability quantifying rules like present values or resale prices which is not acceptable under GAAP.
Financial accounting on the other hand emphasizes on commentary to exterior events like shareholders, government interventions, and banks. It evaluates and registers business dealings and provides fiscal reports that are grounded on generally accepted accounting principles (GAAP). Financial bookkeeping is controlled by commonly accepted accounting principles (Weygandt, Kimmel & Kieso, 2015). Financial accounting comprises of sending monetary reports like income reports or balance sheets, to outside bodies like creditors, tax specialists, shareholders, and the Interior Revenue Service.
The managerial accounting positions out profit and loss accounts, job costing accounts, and operating resources, financial accounting conveys facts only for those on the external who want to decide the company's marketplace assessment. Managerial accounting emphases on issues and answers within an institute while financial accounting is worried with productivity from without. Managerial accountants make internal working reports, while financial accountants generat.
The preparation of financial statements is a key aspect of an organisation's financial management as it relates to the recording and reporting of financial transactions and activities.
Financial statements support decision-making and financial analysis by providing a comprehensive overview of a company's financial performance, position and cash flow.
Response 1:
Part 1
Memo:
Understanding Similarities and Differences between Financial and Managerial Accounting
Attention
: Susan Thompson
Susan-
In an effort to get you up to speed on our expectations, I wanted to provide some details on the differences you can expect to see between managerial and financial accounting and provide you some examples from both areas.
Financial accounting is the backbone of the day-to-day functions of accounting. From payables, to receivables to collections, this area ensures all of the outstanding bills and debts are paid so the organization can operate. The details received from the day to day management of financial accounting are provided to stakeholders’, creditors, vendors and management to ensure the organization is being forthcoming and so management can use the data to further the position of the company(MUSE: Financial and Managerial Accounting). Reports provided within financial accounting include the following:
Income Statement
Statement of Owners Equity
Balance Sheet
Cash Flow Statement
Each of these documents is used by managerial accounting team members to help make decisions about the future of the organization.
Managerial accounting is optional. This is a team of managers who are trying to plan for future business and need to understand the ebbs and flows of the business itself and how any of the business segments or areas can function more productivity. One thing to note is that Financial Accounting is handled by external persons who try to ensure the strength of financial decisions whereas Managerial Accounting is managed by internal managers responsible for the success of the organizations. Financial Accounting Reporting for the IRS is mandatory and GAAP accounting rules must be adhered too. Managerial Accounting has no set rules nor are they bound to any oversight group and are not required to provide any sort of mandatory reporting.
Additional reports used to analyze the health of an organization are horizontal and vertical analyzes.
Horizontal analysis is where we take a series of reports year over year and try to determine what trends were in assets, equity, cash flow, etc. Using these reports allows the management team to better understand the business and what could be coming in the future. Vertical analysis is where we analyze financial statements based on entries for assets, accounts, liabilities and equities. We review each of these as a proportion of the total account and try to understand what led to any inconsistencies.
If you need any further clarification regarding these concepts, reporting or analysis, please reach out to me directly.
Thank You
Part 2
Attn: Board of Directors
MEMO
In an effort to help our team better understand how we can use our current and previous accounting information to help plan and control for future business, I have broken down details on four key financial reports we receive regularly. These reports include the income sta ...
Financial and managerial accounting the basis for business decisions 18th edi...KrisWu123
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This is to certify that the main project report entitled A Study on “FINANCIAL
ANALYSIS” with reference to NAGA HANUMAN SOLVENT OIL, PVT.LYD, BHIMADOL.”
submitted to Jawaharlal Nehru University in partial fulfillment of the requirement for the award
of the degree of Master of Business Administration (MBA), is a original work carried out by me
and that it has not been submitted to any other university/institute for the award of any degree or
diploma.
How Do you Differentiate in Financial Accounting and Management Accounting?www.assignmentdesk.co.uk
Financial and management accounting is done by undertaking various measures. In this document we have explained about various financial and management accounting parameters by which they both can be differentiated.
https://www.assignmentdesk.co.uk/finance-assignment-help
Ashford 5: - Week 4 - Instructor Guidance
"The statement of activities is the not-for-profit Organization’s version of an income statement. This statement shows revenues, expenses and realized and unrealized gains and losses for the not-for-profit organization. A not-for-profit Organization is different and unique from private for-profit entities in that is lacks the ‘Ownership’ attribute, which means they do not issue stock that can be bought, sold or traded (Marsh & Fischer, 2011). Because of the nature of revenue from donations, which have strings attached sometimes, it is required that changes in net assets be reported by class. The different classes are, Temporarily Restricted, Permanently Restricted and Unrestricted (Williams, 1996). This requirement is a part of the Financial Accounting Standards Board (FASB) Pronouncement 117 (FAS-117) which was passed in 1993. The financials of NFP organizations have to report in compliance with FAS-117 in order to adhere to Generally Accepted Accounting Principles, or GAAP.
The Statement of Activities is one of three required financial statements that must be prepared by not-for-profit organizations. The other two statements are the Statement of Financial Position and the Statement of Cash Flows. The statement of activities also ties to the statement of financial position. The change in net assets shown on the statement of activities can be added to the balance of assets at the beginning of the year, and should match the total net assets figure at the end of the year shown in the statement of financial position.
A statement of activities is supposed to clearly show changes in net assets by category. The Permanently Restricted category is for endowments that are required to be held in perpetuity. Income from restricted assets can usually be used for general operations and is classified as additions to unrestricted assets. Temporarily restricted funds can be conditionally restricted or time restricted. This means if someone donates to a NFP organization with the provision that the money be used for a specific purpose, such as capital expenditures, these funds are restricted until the condition has been met. Some donations are restricted by time, for example, money donated to be used for operations in 2016 would be temporarily restricted and cannot be used until that time. At the time the condition, or restriction has been satisfied, the assets are then re-classified, increasing unrestricted assets and decreasing temporarily restricted assets. The statement of activities shows movement of funds from class to class over a period of time (Finkler, Purtell, Calabrese, & Smith, 2013).
The statement of activities was introduced as a requirement for NFP organizations to make their reporting uniform in a way that outside users can understand financials of different NFPs and to make them comparable. This statement is also useful for internal budgeting purposes so that entities know what mon ...
The preparation of financial statements is an important aspect of an organization’s financial management, recording and reporting on financial transactions and activities.
Financial Statement Preparation in New York provides a detailed picture of a company’s financial performance, position, and cash flow to support decision making and financial analysis.
The preparation of relevant financial statements requires a thorough understanding of accounting principles, rules and regulations, as well as attention to detail and accuracy in the recording and reporting of financial statements.
Steps in financial statement preparation.
Running head MANAGERIAL ACCOUNTING 1MANAGERIAL ACCOUNTING.docxwlynn1
Running head: MANAGERIAL ACCOUNTING
1
MANAGERIAL ACCOUNTING
2
Managerial Accounting
Accounting can be defined as the procedure of keeping monetary financial records. Accounting can be group as financial and managerial accounting. For businesses to be successful, they need to be having both managerial and financial accounting experts. Impeccable managerial and financial bookkeeping are important to the progress and constant survival of any corporate. Structurally, economically, and lawfully, bookkeeping is an essential section in any institute, and the necessity for an extremely skilled accounting squad is unconditionally crucial. Despite the similarities between financial and managerial accounting, there are also differences between them.
The managerial accounting works through measuring, analyzing and reporting monetary and non-monetary information that aids directors to make judgements to accomplish the objectives of an organization. Managerial accounting emphasizes on the internal broadcasting and is not regulated by generally accepted accounting principles (GAAP). Management accounting is known for its much efforts to focus on the future rather than paying much attention to what happened in the past (Kinicki & Fugate, 2016). This type of accounting is so influential to the performance of directors and other workers as opposed to principally reporting financial events. There are no principles which guide the operations of management accounting.
Management accounting permits executives to charge attention on owners’ principal to aid judge a division’s presentation, although this may not be allowed by generally accepted accounting principles. Managerial accounting comprises assets or liabilities which may not be recognized by generally accepted accounting principles and it makes use of asset or liability quantifying rules like present values or resale prices which is not acceptable under GAAP.
Financial accounting on the other hand emphasizes on commentary to exterior events like shareholders, government interventions, and banks. It evaluates and registers business dealings and provides fiscal reports that are grounded on generally accepted accounting principles (GAAP). Financial bookkeeping is controlled by commonly accepted accounting principles (Weygandt, Kimmel & Kieso, 2015). Financial accounting comprises of sending monetary reports like income reports or balance sheets, to outside bodies like creditors, tax specialists, shareholders, and the Interior Revenue Service.
The managerial accounting positions out profit and loss accounts, job costing accounts, and operating resources, financial accounting conveys facts only for those on the external who want to decide the company's marketplace assessment. Managerial accounting emphases on issues and answers within an institute while financial accounting is worried with productivity from without. Managerial accountants make internal working reports, while financial accountants generat.
The preparation of financial statements is a key aspect of an organisation's financial management as it relates to the recording and reporting of financial transactions and activities.
Financial statements support decision-making and financial analysis by providing a comprehensive overview of a company's financial performance, position and cash flow.
Response 1:
Part 1
Memo:
Understanding Similarities and Differences between Financial and Managerial Accounting
Attention
: Susan Thompson
Susan-
In an effort to get you up to speed on our expectations, I wanted to provide some details on the differences you can expect to see between managerial and financial accounting and provide you some examples from both areas.
Financial accounting is the backbone of the day-to-day functions of accounting. From payables, to receivables to collections, this area ensures all of the outstanding bills and debts are paid so the organization can operate. The details received from the day to day management of financial accounting are provided to stakeholders’, creditors, vendors and management to ensure the organization is being forthcoming and so management can use the data to further the position of the company(MUSE: Financial and Managerial Accounting). Reports provided within financial accounting include the following:
Income Statement
Statement of Owners Equity
Balance Sheet
Cash Flow Statement
Each of these documents is used by managerial accounting team members to help make decisions about the future of the organization.
Managerial accounting is optional. This is a team of managers who are trying to plan for future business and need to understand the ebbs and flows of the business itself and how any of the business segments or areas can function more productivity. One thing to note is that Financial Accounting is handled by external persons who try to ensure the strength of financial decisions whereas Managerial Accounting is managed by internal managers responsible for the success of the organizations. Financial Accounting Reporting for the IRS is mandatory and GAAP accounting rules must be adhered too. Managerial Accounting has no set rules nor are they bound to any oversight group and are not required to provide any sort of mandatory reporting.
Additional reports used to analyze the health of an organization are horizontal and vertical analyzes.
Horizontal analysis is where we take a series of reports year over year and try to determine what trends were in assets, equity, cash flow, etc. Using these reports allows the management team to better understand the business and what could be coming in the future. Vertical analysis is where we analyze financial statements based on entries for assets, accounts, liabilities and equities. We review each of these as a proportion of the total account and try to understand what led to any inconsistencies.
If you need any further clarification regarding these concepts, reporting or analysis, please reach out to me directly.
Thank You
Part 2
Attn: Board of Directors
MEMO
In an effort to help our team better understand how we can use our current and previous accounting information to help plan and control for future business, I have broken down details on four key financial reports we receive regularly. These reports include the income sta ...
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FIN 575 University of Phoenix Financial Ratio Analysis Worksheet.docx
1. (Mt) – FIN 575 University of Phoenix Financial Ratio Analysis Worksheet
Running head: OVERVIEW OF FINANCIAL STATEMENTS Overview of Financial Statements
Teresa Rudnick FIN/575 October 25, 2019 Betty Ahmed 1 OVERVIEW OF FINANCIAL
STATEMENTS 2 1 Overview of Financial Statements 2 Income statements, balance sheets
and statement of cash flows are the three primary financial statements which report a
company’s financial performance over a specific accounting period. To start with, an income
statement summarizes the revenues and expenses generated by in company over the entire
reporting period. Some of the salient information contained in an income statement include
the various revenues generated in a company, such as from the sale of the company’s
products and services. The other important information that is contained in an income
statement is the various expenses incurred by a company over a particular accounting
period (Griffin & BarCharts, 2014). These expenses may include rent, transport, wages,
interest paid as well as other utilities paid by a company. The other vital information
contained in an income statement are the various gains received in the company, including
those from the sale of various assets such as the company vehicle. Finally, the losses
incurred in a company are the essential other pieces of information included in income
statements (Nothhelfer, 2017). On the other hand, a balance sheet reports the assets and
liabilities of a company at a specific point in time. Therefore, one of the salient information
contained in a balance sheet is that of the current assets, which include inventory, prepaid
expenses, accounts receivable and also other fixed assets such as machinery, land buildings,
etc. (Nothhelfer, 2017). The other vital information contained in a balance sheet is the
various liabilities such as interest payable, rent, dividends payable, deferred tax, customer
prepayments, etc. Finally, a statement of cash flow summarizes the cash and cash
equivalents entering and leaving a particular company in a specified accounting period.
Therefore, some of the vital information contained in a statement of cash flow include cash
from operating activities such as the decrease in inventory and also an increase in accounts
payable. The other vital information is cash from investing activities such as OVERVIEW OF
FINANCIAL STATEMENTS 3 capital expenditures and also proceeds from the sale of a
property. In addition to this, cash flow from financing activities such as payment of a loan
and also the purchase of treasury stock is the other vital information that should be
included in a statement of cash flow (Nothhelfer, 2017). According to a report by Apple Inc.
for the fiscal year ending on 29 September 2018, the net income was $59,531million, the
total assets were $365,725 million and the total net cash flow in the same year was $5.624
billion (Apple Financial Statements, 2019). The three mentioned financial statements are all
2. connected. However, the net income links both the cash 3 flow statement and the balance
sheet. These two are connected in that any item on the balance sheet, which has a cash
impact such as the working capital is linked to the cash flow statement since they are either
use or source of cash. Apart from this, the ending cash balance in a balance sheet also
appears in the cash flow statement. On the other hand, the income statement and the
balance sheet are connected in that the purchase or sale or deposition of an asset appears
on the balance sheet and also on the income statement as a gain or loss appropriately
(Griffin & BarCharts, 2014). The income statement and the cash flow statement are, on the
other hand, connected in that any non-cash expense or income on the income statement
such as amortization and depreciation are also included in the cash flow statement to get
the cash flow from operations. Finally, the income statement and the balance sheet are
connected in that the net earning at the end of an income statement are transferred to the
balance sheet as retained earnings from the previous accounting period (Griffin &
BarCharts, 2014). Financial statements are very important in business since they record
financial activities and also the position of a company. A balance sheet is essential to an
entrepreneur since it tells him or her the assets or liabilities that they have for them to
ensure that they are balanced. This helps entrepreneurs to know their company’s net worth
or value (Henderson, 2019). On the other OVERVIEW OF FINANCIAL STATEMENTS 4 hand,
a cash flow statement is crucial since it shows the entrepreneur how money moves within
their business, thus helping them to control operations. This allows entrepreneurs to know
if they have enough working capital for their business (Henderson, 2019). Finally, an
income statement is essential since it helps them to understand how their business
performed in a certain period by letting them know whether they made a profit or loss in
their business. These documents are, thus, crucial to the success of an entrepreneur’s
business. OVERVIEW OF FINANCIAL STATEMENTS References Apple Financial Statements
2005-2019 | AAPL. (2019). Retrieved 24 October 2019, from
https://www.macrotrends.net/stocks/charts/AAPL/apple/financial-statements Griffin, M.
P., & BarCharts, I. (2014). Financial Statements. Boca Raton, FL: Quick Study Reference
Guides. Henderson, E. (2019). Users’ Perceptions of Usefulness and Relevance of Financial
Statement Note Disclosures and Information Overload. International Journal of Business,
Accounting, & Finance, 13(1), 41–56. Nothhelfer, R. (2017). Financial Accounting:
Introduction to German GAAP with Exercises. Berlin/Boston: De Gruyter Oldenbourg. 5
Comment Summary Page 2 1. Should not be bold here. 2. You need headings in your paper.
You have not included an introduction that include s the purpose of the paper. For salient
information, you needed to discuss revenues and expenses and net income from the income
statement; assets, liabilities, and owner’s equity from the balance sheet; and cash from
operations, financing investing and net cash flows from the statement of cash flows. You
have located the net income, total assets and net cash flows. Connectivity section needed to
include that the net income is shown/needed on the statement of cash flows, the changes in
cash information comes from both the income statement and the balance sheet items, net
income/ loss is used/moved to the balance sheet for owner’s equity or retained earnings
section. You have discussed the importance of financial statements to the entrepreneur. You
met the 700 word count and mostly met APA formatting. You have one peer review
3. reference from the UOP Library. Page 3 3. Need a new section for this discussion. Running
head: FINANCIAL RATIOS 1 Financial Ratios Teresa Rudnick FIN/575 November 2, 2019
Betty Ahmed FINANCIAL RATIOS 2 Financial Ratios 1 Often, financial ratios are commonly
used tools when it comes to comparing and analyzing the financial standing of various
companies. Financial ratios are thus used as a diagnostic tool to establish the various
sources of financial troubles which may strike a company. Apart from, making comparative
judgments regarding a company’s performance financial ratios are also used to track the
performance of a company in different periods (Kuma, 2018). Further, financial ratios are
also used to identify the performance trends of a company over a specific time. There are
various categories of financial ratios, but the major categories are liquidity ratios, solvency
ratios and profitability ratios (Thomas & Rabiyathul Basariya, 2019). To start with, liquidity
ratios are used to measure a company’s ability to repay long-term and short-term liabilities.
In short, liquidity ratios look at the available cash operations. Some of the uses of liquidity
ratios include that they are used to measure a company’s ability to pay short-term liabilities
using current assets, quick assets, or even cash and cash equivalent. Apart from this,
liquidity ratios are also used by financial institutions to determine their health of
institutions with regard to responding to liquidity before providing credit to them. Finally,
liquidity ratios are used to measure the efficiency of a firm to convert inventory and
receivable cash to either reduce or increase its liquidity (Apple Financial Statements, 2019).
On the other hand, solvency ratios also leverage ratios measure a company’s ability to
sustain its operations by comparing the debt levels with the company’s assets, earnings and
also equity. Solvency ratios thus keep track of a company’s debt to ensure that it is optimal.
Therefore, solvency ratios are used to evaluate a company’s debt levels, the relative amount
of assets generated from debts, and also the weight of total debt against shareholders’
equity (Apple Financial Statements, 2019). Apart from this, solvency ratios are also used to
the ability of a firm FINANCIAL RATIOS 3 to satisfy its liabilities with its assets. Solvency
ratios are used to understand the capital structure of a company to determine if its solvent
or not. Solvency ratios are used to measure the efficiency of a firm to convert borrowed
debt to generate revenue and expand its business (Thomas & Rabiyathul Basariya, 2019).
Finally, profitability ratios measure the ability of a company to generate profits relative to
balance sheet assets, operating costs equity and also revenue. Therefore, profitability ratio
is used to measure the degree of a company’s profits and also determine if a company
makes enough profits from its assets, the net sales, after paying the costs of the goods sold.
Profitability ratios are used to assess the capacity of a firm to generate adequate income to
repay interest on its debts. Finally, profits ratios are also used to evaluate the 2 efficiency of
assets to make a profit. Using the financial statements of Apple Inc. as per September 2019
below will be the calculations of the current ratio, the profit margin and the after-tax ROE.
Using Apple’s balance sheet for the year ended 28th September 2019, the current ratio will
be used to compare the current assets of Apple Inc. with the current liabilities of the
company. It is one of the liquidity ratios and is calculated by dividing the current assets by
the current liabilities of a company in a given period. Further, the liquidity ratio is used by
investors to show how a certain company can maximize its assets to reduce the current
debts which a company owes other firms. As per Apple Inc’s balance sheet for the fiscal year
4. ending 28th September 2018, the total current assets were $162,819 million, whereas the
current liabilities were $105,718 million. Therefore, the current ratio using this information
will be 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠 Current ratio=𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 Thus, Current ratio=
162819000000 105718000000 = 1.5401 FINANCIAL RATIOS 4 On the other hand, the
profit margin is a profitability ratio that measures the amount of net income earned with
each dollar of the sales made. In a nutshell, the profit margin indicates the amount by which
a company’s revenue exceeds its costs of operation. The profit margin is thus used to
measure the efficiency of a company to convert the net sales into net income (Kuma, 2018).
However, to calculate the profit margin of Apple Inc. for the year ending 28 th September
2019, the income statement or the consolidates statement of operation will be used. It can
thus be illustrated by subtracting the total expenses from the total sales and then dividing
the result with the total sales. However, in a simple way, the profit margin is given by Profit
margin = 𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒 𝑁𝑒𝑡 𝑠𝑎𝑙𝑒𝑠 Considering the latter consolidated statement of operation,
the net income was $55,256 million, whereas the net sales were $260,174 million.
55256000000 Thus, the profit margin for apple for this fiscal year will be 260174000000 =
0.2124= 21.24% Finally, the after-tax ROE is a solvency ratio that measures the efficiency of
a company to use equity to generate profit. Therefore, the ROE indicates how much profit is
generated from investment equity (Thomas & Rabiyathul Basariya, 2019). To calculate the
after-tax ROE, net income after tax, from the income statement and the stakeholder’s equity
of the 2019 fiscal year from the consolidated statement of shareholders equity will be used.
The net income for the fiscal year ending 28th September 2019 was $55,256 million,
whereas the stakeholder’s equity for the same period was $107,147million minus $90,488
million. Therefore, considering the formula for the after-tax ROE which is, 𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒
𝑎𝑓𝑡𝑒𝑟 𝑡𝑎𝑥 After-tax ROE = 𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟 ′ 𝑠 𝑒𝑞𝑢𝑖𝑡𝑦 FINANCIAL RATIOS 5 The after-tax ROE
of Apple Inc. for the year ending 28th September 2019 is, 55,256,000,000 16,659,000,000 =
3.3169= 33.169% However, according to Morningstar, the current ratio of Apple Inc. was
1.54, the profit margin was 21.24%, while the after-tax ROE was 55.92%. With regards to
the current ratio of the calculated current ratio was the same as that which was on the
Morningstar website. My calculated current ratio was 1.54 and so was the current ratio of
Apple Inc. for the year ending September 2019 (Morningstar,2019). On the other hand, the
calculated profit margin was the same as that from the Morningstar website. The profit
margin of Apple Inc. was 21.24% for the year ending September 2019 as per the Morning
star website and this was the same case as for my calculated profit margin. Finally, my
calculated after tax-ROE differed from that on Morning star (Morningstar,2019). As per my
calculations, the after-tax ROE was 33.169%, whereas the ROE from the Morningstar
website was 55.92%. 3 Current ratio for the year ended September 2019 1.8 1.6 1.4 1.2 1
0.8 0.6 0.4 0.2 0 Category 1 Calculated morning star Column1 FINANCIAL RATIOS 6 Profit
margin for the year ending september 2019 25 20 15 10 5 0 Category 1 Series 1 Morning
star Column1 After-tax ROE for the year ending September 2019 60 50 40 30 20 10 0
Category 1 Series 1 Morningstar Column1 FINANCIAL RATIOS 7 References Apple Financial
Statements 2005-2019 | AAPL. (2019). Retrieved 24th October 2019, from
https://www.macrotrends.net/stocks/charts/AAPL/apple/financial-statements Growth,
Profitability, and Financial Ratios for Apple Inc (AAPL) from Morningstar.com. (2019).
5. Retrieved 2nd November 2019, from
https://financials.morningstar.com/ratios/r.html?t=0P000000GY&culture=en&platform=s
al Kuma, B. (2018). Insurance Industry and its Financial Ratios. International Journal of
Research in Social Sciences, 8(10), 588–592. Thomas, J., & Rabiyathul Basariya, S. (2019). A
Study on the Issues of Financial Ratio Analysis. Indian Journal of Public Health Research &
Development, 10(3), 1079. Comment Summary Page 2 1. You need to begin with an
introduction. Page 3 2. YOu need headings in your paper. i. You also need more detail on
each category of ratios. Page 5 3. Very good job with the ratio and comparisons. You put in a
good effort to calculate and display the current ratio, profit margin, and after tax return on
equity and compare with calculated ratios. For accurate formulas, see
https://www.aaii.com/journal/article/ 16-financial-ratios-for-analyzing-a-companys-
strengths-and-weaknesses.touch You met the library article and 1,050 word count
requirement.