2. Summary
• During this presentation I will be giving an overview of the
company Gemstar production and it future when it comes to
finances. I would first like to thank the company for my new
position as Production Accountant for Gemstar Productions.
In this presenation we will discuss the Balance sheet, Ratio,
Profit and Loss, Cashflow, 5 Internal controls, and different
terminology . During this presentation we will go deep into
the conpany financal background and breaking down every
section and outline key points that will help the company
significantly. Some of the terminology will be simply but it
major to understand what each one mean instead of
guessing and going off what you heard. Understanding is
better than guessing.
3. Balance Sheet
The purpose of this Balance Sheet is
to analyze statement and reports of
the corporation to make proper
assessments for future risks and
modifications necessary to maintain
the corporation future networking
opportunities.
The 3 types of accounts found on
this Balance Sheet are Assets,
Liabilities and Equity.
4. 3 Different types of Ratio
• Debt to Assets is The debt ratio is defined as the ratio of total debt to total assets, expressed as a decimal or percentage. It can be interpreted as the proportion of
a company’s assets that are financed by debt. The formula for debt asset is to the quotient of total debt divided by total assets. When doing this you
want to make sure that you get the short term +long term debt/ which is divided by the total assets
• ASSETS
• The cash account has a balance of $49,280:00.
• Supplies Inventory account has a balance of $1,333.00 after expensing $667.00 of the purchase due to usage.
• 'Vehicles' account has a balance of $13,953.00 because of purchasing a vehicle for $14,250.00 .Depreciating value at the rate of $297.00 per month.
• 'Deposit at Vendor' account has a balance of $500.00
• Return on Assets The term return on assets (ROA) refers to a financial ratio that indicates how profitable a company is in relation to its total assets. Corporate
management, analysts, and investors can use ROA to determine how efficiently a company uses its assets to generate a profit. When you doing the formula for
ROA; you want to make sure that you calculated the company total net and divided it by the company total assets.
• Liabilities
• loan Payable has a balance of $49,280
• Interest Payable balance of $233.00
• Return on Equity is a measure of financial performance calculated by dividing net income by shareholders' equity. Because shareholders' equity is equal to a
company’s assets minus its debt, ROE is considered the return on net assets. When it comes to the formula to find the ROE of the company, you
must calculatedit by comparing the proportion of net income against the amount of shareholder equity.
• Equity
• Common Stock has a balance of
• $20,000.
• - Retained Earnings has a balance of
• $4,833.00.
5. Profit and Loss
What is a profit and loss statement?
• The profit and loss (P&L) statement is a financial
statement that summarizes the revenues, costs,
and expenses incurred during a specified period.
When you look on the profit and loss statement,
you will see 3 sales that is locate at the top of the
page.
• Which is Actual, Budget, and Variance. The Actual
is the amount of funds that I have as total to work
with . The budget is where I set the finances of the
company to make sure that I have space in case
something goes wrong that I can cover it with the
extra left. The Variance is what is left over out the
actual after the budget has been subtracted.
6. Cash Flow
A cash flow statement summarizes the amount of cash and cash
equivalents entering and leaving a company. The CFS highlights
a company's cash management, including how well it generates
cash. When you look on the the statement of Cash flow; it has 3
activities that it use which is Operating, Investing, and Financing.
• Operating Activities is any sources and uses of cash from
business activities.
• Investing Activities is any sources and uses of cash from a
company’s investments.
• Financing Activities is the sources of cash from investors and
banks, as well as the way cash is paid to shareholders. This
includes any dividends, payments for stock repurchases, and
repayment of debt principal (loans) that are made by the
company.
All these terms can be viewed more within the reference on
located on the last page
7. 5 Internal
Controls
• Detective Control is designed to locate all errors that have been found during a transaction.
The reason for this control is to make sure there is no fraud, no issue has been looked over,
and to provide evidence of if any irregularities have been detected after –the- fact. This will
help the company take control of their finances, and make sure that no extra money is being
used for the wrong reason or extra expenses have been taking.
• Preventive Control is aimed to decrease the chances of fraud before it even occurs. Having
Preventive Control helps to align different areas of the company to make sure no funds are
being misused and every part of the company is being fully protected. Some of the areas are
Travel Authorization and Access controls. This helps the company to manage every
transaction, every password, link, and to make sure no type of security breach is taking
place.
• Corrective Control this control is used to fix any issue that is found during the process of
Detective Control. This type of control can also be used to locate any issue made in
accountant during the audit process. The company can benefit from this because it gives an
overview of how much money is going in and out of the company, locates any
embezzlement that is taking place, and makes sure the company is functioning proficiently
and correctly.
• Physical Control is when equipment, inventories, securities, cash, and other assets are
secured physically using locks, safe and other environment controls. This helps the company
to make sure that everything of value is being protected in every way possible. This control
is the physical aspect of the company and keep a close eye on it.
• Access Control is the control process in accounting that refers to policies, procedures, and
mechanisms that are put in place to manage, restrict, and monitor access to financial data,
systems, and resources within an organization. This helps control all the sensitive
information in the company to keep it from being accessed by unauthorized users. The
company must be always protected from hackers, outsiders, and competitors to make sure all
data is safely secured.
8. Knowing the terms of Accountants.
Deposit at Vendor
Deposit at vendor is when the vendor deposits the company check made from its box before it able to receive the merchandise or the service the
company request
Cash
Cash is considered coins, bank, balances, money orders, and checks. Cash is also used in the form of Eletronic, so that it can be stated in
computers records for investments accounts
Customer Deposit
Customer deposit is when cash is paid by the customer to the company for a product that the company will put a hold on until it is paid in full. The
company must provide the good or Serivices to the customer after being paid in full. If not, the company must give the customer a refund
Loan Payable
Loan payable is the arrangement between the owner of the property who renter who charges interest payment on the property until it is returned at
the end of lending arrangement. This loan is also a document on a promissory note for business purposes.
Interest Payable
interest Payable Is the interest that is gained on a debt the company owes to the lenders that is stated on the balance sheet as of date. This
amount of interest payable is greater than the normal amount
Audit usually refers to the financial audit or review of financial statements
Rolling budget continually updated to add a new budget period as the most recent budget period is completed.
Access control is employed to ensure that only authorized personnel are allowed to use certain systems or physical location
9. References
• 3 Fraud Triangle Components Explained | Embroker. 17 July 2021, www.embroker.com/blog/fraud-
triangle/#:~:text=In%20the%201970s%2C%20criminologist%20Donald.
• Fernando, Jason . “Return on Equity (ROE) Calculation and What It Means.” Investopedia, 24 May 2023,
www.investopedia.com/terms/r/returnonequity.asp#:~:text=Return%20on%20equity%20(ROE)%20is%20the%20measure%20of%20a%20company.
• Hargrave, Marshall. “Return on Assets (ROA): Formula and “Good” ROA Defined.” Investopedia, 28 Jan. 2024, www.investopedia.com/terms/r/returnonassets.asp.
• Kagan, Julia. “Accountant.” Investopedia, 20 Oct. 2020, www.investopedia.com/terms/a/accountant.asp.
• Miller, Rebecca. “What to Look for in an Accountant.” Business.org, 11 Oct. 2021, www.business.org/finance/accounting/what-to-look-for-in-an-
accountant/#What_they_do. Accessed 25 Mar. 2024.
• “Total Debt-To-Total Assets Ratio: Meaning, Formula, and What’s Good.” Investopedia,
www.investopedia.com/terms/t/totaldebttototalassets.asp#:~:text=The%20debt%20ratio%2C%20or%20total.
• Bragg, Steven. “AccountingTools.” AccountingTools, 17 Aug. 2019, www.accountingtools.com/articles/what-is-a-rolling-budget.html.
• Fernando, Jason. “Profit and Loss Statement (P&L) Definition.” Investopedia, 1 Mar. 2021, www.investopedia.com/terms/p/plstatement.asp.
