Financial Reporting And Analysis Explained.as to why is it important, Who is it important for and the different ways of analyzing a financial statement.
Greenwich University
Chapter 1 Introduction to Financial ManagementSafeer Raza
Chapter 1 of Financial Management by Van horn
Introduction to Financial management
Topics
Introduction
What is Financial Management
Investment Decision
Financing decision
Asset management Decision
Goal of the firm
Value creation or profit maximization
wealth maximization
Agency problems
Corporate Social Responsibility
Corporate governance
Organization of the financial management function
This PPT covers all the important ratios which are necessary in financial analysis of a business enterprise.
Whether you are starting your career i commerce and business or you a working profession these ratios will always help you to properly analsyse a company and draw relevant conclusions The main ratios covered are:
Liquidity Ratios
Leverage Ratios
Efficiency Ratios
Profitability Ratios
Market Value Ratios
Financial Reporting And Analysis Explained.as to why is it important, Who is it important for and the different ways of analyzing a financial statement.
Greenwich University
Chapter 1 Introduction to Financial ManagementSafeer Raza
Chapter 1 of Financial Management by Van horn
Introduction to Financial management
Topics
Introduction
What is Financial Management
Investment Decision
Financing decision
Asset management Decision
Goal of the firm
Value creation or profit maximization
wealth maximization
Agency problems
Corporate Social Responsibility
Corporate governance
Organization of the financial management function
This PPT covers all the important ratios which are necessary in financial analysis of a business enterprise.
Whether you are starting your career i commerce and business or you a working profession these ratios will always help you to properly analsyse a company and draw relevant conclusions The main ratios covered are:
Liquidity Ratios
Leverage Ratios
Efficiency Ratios
Profitability Ratios
Market Value Ratios
Lecture 21 expenditure cycle part i - accounting information systesm james ...Habib Ullah Qamar
the expenditure cycle, the physical phase, financial phase, the purchases system, the cash disbursement system, conceptual revenue cycle, manual revenue cycle and computer based accounting information systems
Lecture 21 expenditure cycle part i - accounting information systesm james ...Habib Ullah Qamar
the expenditure cycle, the physical phase, financial phase, the purchases system, the cash disbursement system, conceptual revenue cycle, manual revenue cycle and computer based accounting information systems
LO16-1 through LO16-5EXERCISE 16.1Accounting TerminologyLi.docxSHIVA101531
LO16-1 through LO16-5
EXERCISE 16.1
Accounting Terminology
Listed below are eight technical accounting terms introduced or emphasized in this chapter: Listed below are eight technical accounting terms introduced or emphasized in this chapter:
1) Work in Process
2) Inventory
3) Cost of finished goods manufactured
4) Conversion costs
5) Cost of Goods Sold
6) Period costs
7) Management accounting
8) Product costs
9) Manufacturing overhead
Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the accounting term described, or answer “None” if the statement does not correctly
describe any of the terms.
a. The preparation and use of accounting information designed to assist managers in planning and controlling the operations of a business.
b. All manufacturing costs other than direct materials used and direct labor.
c. Direct materials and direct labor used in manufacturing a product.
d. A manufacturing cost that can be traced conveniently and directly to manufactured units of product.
e. The account debited at the time that the Manufacturing Overhead account is credited.
f. The amount transferred from the Work in Process Inventory account to the Finished Goods Inventory account.
g. Costs that are debited directly to expense accounts when the costs are incurred.
EXERCISE 16.2 (LO16-2)
Basic Types of
Manufacturing Costs
Into which of the three elements of manufacturing cost would each of the following be classified?
a. Tubing used in manufacturing bicycles.
b. Wages paid by an automobile manufacturer to employees who test-drive completed automobiles.
c. Property taxes on machinery.
d. Gold bullion used by a jewelry manufacturer.
e. Wages of assembly-line workers who package frozen food.
f. Salary of plant superintendent.
g. Electricity used in factory operations.
h. Salary of a nurse in a factory first-aid station.
EXERCISE 16.3 (LO16-3 & LO16-5)
Product Costs
and Period Costs
Indicate whether each of the following should be considered a product cost or a period cost. If you identify the item as a product cost, also indicate whether it is a direct or an indirect cost. For example, the answer to item 0 is “indirect product cost.” Begin with item a.
0. Property taxes on factory building.
a. Cost of disposal of hazardous waste materials to a chemical plant.
b. Amounts paid by a mobile home manufacturer to a subcontractor who installs plumbing in each mobile home.
c. Depreciation on sales showroom fixtures.
d. Salaries of security guards in an administrative office building.
EXERCISE 16.6 (LO16-3 & LO16-5)
Flow of Costs through
Manufacturing Accounts
The Ryde and Rowe Inc. had the following account balances as of January 1:
Direct Materials Inventory . . . .. . . . . . . . . . . . . . . . . . . . . . . . . $ 89,200
Work in Process Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178,400
Fin ...
A Strategic Approach: GenAI in EducationPeter 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.
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.
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
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International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.
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.
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
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?
This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
1.4 modern child centered education - mahatma gandhi-2.pptx
Managerial accounting Ch01
1. 1-1
Chapter 1
Managerial
Accounting
Learning Objectives
After studying this chapter, you should be able to:
[1] Explain the distinguishing features of managerial accounting.
[2] Identify the three broad functions of management.
[3] Define the three classes of manufacturing costs.
[4] Distinguish between product and period costs.
[5] Explain the difference between a merchandising and a manufacturing income
statement.
[6] Indicate how cost of goods manufactured is determined.
3. 1-3
Managerial accounting is a field of accounting that
provides economic and financial information for managers
and other internal users.
Managerial accounting applies to all types of businesses.
Corporations
Proprietorships
Partnerships
Not-for-profit
Managerial Accounting Basics
4. 1-4 LO 1 Explain the distinguishing features of managerial accounting.
Comparing Managerial and Financial
Accounting Illustration 1-1
Managerial Accounting Basics
5. 1-5
a. Is governed by generally accepted accounting
principles.
b. Places emphasis on special-purpose information.
c. Pertains to the entity as a whole and is highly
aggregated.
d. Is limited to cost data.
Managerial accounting:
Review Question
LO 1 Explain the distinguishing features of managerial accounting.
Managerial Accounting Basics
6. 1-6
LO 2 Identify the three broad functions of management.
Management Functions
Planning
Maximize short-term
profit and market
share.
Commit to
environmental
protection and social
programs.
Add value to the
business.
Directing Controlling
Coordinate diverse
activities and human
resources.
Implement planned
objectives.
Provide incentives to
motivate employees
Hire and train
employees.
Produce smooth-
running operation.
Keeping activities on
track.
Determine whether
goals are met.
Decide changes
needed to get back
on track.
May use an informal
or formal system of
evaluations.
Managerial Accounting Basics
8. 1-8
LO 2 Identify the three broad functions of management.
Illustration 1-2
Organization charts show the
interrelationships of activities
and the delegation of authority
and responsibility within the
company.
Organizational Structure
Managerial Accounting Basics
9. 1-9
LO 2 Identify the three broad functions of management.
Business Ethics
All employees are expected to act ethically.
Many organizations have codes of business ethics.
Past financial frauds:
► Enron,
► Global Crossing,
► WorldCom
Managerial Accounting Basics
10. 1-10
LO 2 Identify the three broad functions of management.
Business Ethics
Creating Proper Incentives
Systems and controls sometimes create incentives
for managers to take unethical actions.
Controls need to be effective and realistic.
Managerial Accounting Basics
11. 1-11
LO 2 Identify the three broad functions of management.
Business Ethics
Sarbanes-Oxley Act (SOX)
Clarifies management’s responsibilities.
Requires certifications by CEO and CFO.
Selection criteria for Board of Directors and Audit
Committee.
Substantially increased penalties for misconduct.
Code of Ethical Standards
Managerial Accounting Basics
12. 1-12
a. Planning, directing, and selling.
b. Directing, manufacturing, and controlling.
c. Planning, manufacturing, and controlling.
d. Planning, directing, and controlling.
The management of an organization performs several
broad functions. They are:
LO 2 Identify the three broad functions of management.
Managerial Accounting Basics
Review Question
13. 1-13
Indicate whether the following statements are true or false.
1. Managerial accountants have a single role within an
organization, collecting and reporting costs to
management.
2. Financial accounting reports are general-purpose and
intended for external users.
3. Managerial accounting reports are special-purpose and
issued as frequently as needed.
False
True
True
LO 2 Identify the three broad functions of management.
14. 1-14
False
False
True
LO 2 Identify the three broad functions of management.
Indicate whether the following statements are true or false.
4. Managers’ activities and responsibilities can be classified
into three broad functions: cost accounting, budgeting,
and internal control.
5. As a result of the Sarbanes-Oxley Act, managerial
accounting reports must now comply with generally
accepted accounting principles (GAAP).
6. Top managers must certify that a company maintains an
adequate system of internal controls.
15. 1-15
LO 3 Define the three classes of manufacturing costs.
Managers should ask questions such as the following.
1. What costs are involved in making a product or
providing a service?
2. If we decrease production volume, will costs decrease?
3. What impact will automation have on total costs?
4. How can we best control costs?
Manufacturing Costs
16. 1-16
LO 3 Define the three classes of manufacturing costs.
Manufacturing consists of activities and processes that
convert raw materials into finished goods.
Manufacturing Costs
Manufacturing Costs
17. 1-17
Direct Materials
Raw Materials
Basic materials and parts used in
manufacturing process.
LO 3 Define the three classes of manufacturing costs.
Direct Materials
Raw materials that can be physically and directly associated
with the finished product during the manufacturing process.
Manufacturing Costs
18. 1-18
Indirect Materials
Not physically part of the finished product or they are
an insignificant part of finished product in terms of
cost.
Considered part of manufacturing overhead.
LO 3 Define the three classes of manufacturing costs.
Direct Materials
Manufacturing Costs
19. 1-19
Work of factory employees that can be
physically and directly associated with
converting raw materials into finished
goods.
Indirect Labor
Work of factory employees that has no physical
association with the finished product or for which it is
impractical to trace costs to the goods produced.
LO 3 Define the three classes of manufacturing costs.
Direct Labor
Manufacturing Costs
20. 1-20
Costs that are indirectly associated with manufacturing
the finished product.
Includes all manufacturing costs except direct materials
and direct labor.
Also called factory overhead, indirect manufacturing
costs, or burden.
LO 3 Define the three classes of manufacturing costs.
Manufacturing Overhead
Manufacturing Costs
22. 1-22
Which of the following is not an element of manufacturing
overhead?
a. Sales manager’s salary.
b. Plant manager’s salary.
c. Factory repairman’s wages.
d. Product inspector’s salary.
Review Question
LO 3 Define the three classes of manufacturing costs.
Manufacturing Costs
23. 1-23
Components:
Costs that are an integral part of producing the
product.
Recorded in “inventory” account.
Not an expense (COGS) until the goods are sold.
LO 4 Distinguish between product and period costs.
Product Costs
Direct materials
Direct labor
Manufacturing overhead
Product Versus Period Costs
24. 1-24
Charged to expense as incurred.
Non-manufacturing costs.
Includes all selling and administrative expenses.
LO 4 Distinguish between product and period costs.
Period Costs
Product Versus Period Costs
25. 1-25
LO 4 Distinguish between product and period costs.
Illustration 1-3
Product Versus Period Costs
26. 1-26
LO 4 Distinguish between product and period costs.
A bicycle company has these costs: tires, salaries of employees
who put tires on the wheels, factory building depreciation, wheel
nuts, spokes, salary of factory manager, handlebars, and salaries
of factory maintenance employees. Classify each cost as direct
materials, direct labor, or overhead.
Direct Materials
Tires.
Spokes.
Handlebars.
Direct Labor Overhead
Salaries of
employees who put
tires on the wheels.
Factory depreciation.
Factory manager
salary.
Factory maintenance
employees salary.
27. 1-27
Under a periodic inventory system, the income statements
of a merchandiser and a manufacturer differ in the cost of
goods sold section.
LO 5 Explain the difference between a merchandising
and a manufacturing income statement.
Income Statement
“COGS”
Manufacturing Costs in Financial Statements
28. 1-28
Cost of Goods Sold Components – (Periodic Inventory System)
LO 5
Illustration 1-4
Cost of Goods Manufactured
Manufacturing Costs in Financial Statements
29. 1-29
Cost of goods sold sections of merchandising and
manufacturing income statements
Illustration 1-5
LO 5 Explain the difference between a merchandising
and a manufacturing income statement.
Manufacturing Costs in Financial Statements
30. 1-30
a. $450,000.
b. $500,000.
c. $550,000.
d. $600,000.
For the year, Red Company has cost of goods manufactured
of $600,000, beginning finished goods inventory of $200,000,
and ending finished goods inventory of $250,000. The cost of
goods sold is
Review Question
LO 5 Explain the difference between a merchandising
and a manufacturing income statement.
Beg. Inventory $200,000
+ COGs Manufactured 600,000
Goods Available for Sale 800,000
- End. Inventory 250,000
Cost of Goods Sold $550,000
Manufacturing Costs in Financial Statements
31. 1-31
Determining the Cost of Goods Manufactured
Total Work in Process – (1) cost of beginning work in process and (2)
total manufacturing costs for the current period.
Total Manufacturing Costs – sum of direct material costs, direct labor
costs, and manufacturing overhead in the current year.
LO 6 Indicate how cost of goods manufactured is determined.
Illustration 1-6
Manufacturing Costs in Financial Statements
34. 1-34
LO 6 Indicate how cost of goods manufactured is determined.
Manufacturing Costs in Financial Statements
35. 1-35
LO 7 Explain the difference between a merchandising
and a manufacturing balance sheet.
Illustration 1-8
Inventory accounts for a manufacturer
The balance sheet for a merchandising company shows just one
category of inventory.
Balance Sheet
Manufacturing Costs in Financial Statements
36. 1-36
LO 7 Explain the difference between a merchandising
and a manufacturing balance sheet.
Illustration 1-9
Current assets sections of merchandising and manufacturing balance
sheets
Balance Sheet
Manufacturing Costs in Financial Statements
37. 1-37
a. Raw materials and work in process only
b. Work in process only
c. Raw materials only
d. Raw materials, work in process, and finished goods
A cost of goods manufactured schedule shows beginning and
ending inventories for:
Review Question
LO 7 Explain the difference between a merchandising
and a manufacturing balance sheet.
Manufacturing Costs in Financial Statements
38. 1-38
LO 7 Explain the difference between a merchandising
and a manufacturing balance sheet.
Illustration 1-10
Illustration: Suppose you started your own snowboard
factory, KRT Boards. Here are some of the costs that your
snowboard factory would incur. Assign the following costs:
Manufacturing Costs in Financial Statements
40. 1-40
If KRT Boards produces 10,000 snowboards the first year,
what would be the total manufacturing costs?
LO 7 Explain the difference between a merchandising
and a manufacturing balance sheet.
Illustration 1-11
Manufacturing Costs in Financial Statements
41. 1-41
U.S. economy, in general, has shifted toward an emphasis
on providing services rather than goods.
Over 50% of U.S. workers are now employed by service
companies.
Trend is expected to continue in the future.
Most of the techniques learned for manufacturing firms are
applicable to service companies.
Product Costing For Service Industries
LO 7 Explain the difference between a merchandising
and a manufacturing balance sheet.
Manufacturing Costs in Financial Statements
43. 1-43
Refers to all business process associated with providing a
product or service.
For a manufacturing firm these include the following:
LO 8 Identify trends in managerial accounting.
Focus on the Value Chain
Illustration 1-12
Managerial Accounting Today
44. 1-44
Just-In-Time Inventory Methods
Inventory system in which goods are manufactured or
purchased just in time for sale.
LO 8 Identify trends in managerial accounting.
Reduce defects in finished products, with the goal of
zero defects.
Total Quality Management (TQM)
Managerial Accounting Today
45. 1-45
Constraints (“bottlenecks” ) limit the company’s potential
profitability.
A specific approach to identify and manage these
constraints in order to achieve company goals.
Theory of Constraints
LO 8 Identify trends in managerial accounting.
Software programs designed to manage all major
business processes.
Enterprise Resource Planning (ERP)
Managerial Accounting Today
46. 1-46
Allocates overhead based on use of activities.
Results in more accurate product costing and scrutiny of
all activities in the value chain.
LO 8 Identify trends in managerial accounting.
Activity-Based Costing (ABC)
Managerial Accounting Today
47. 1-47
Evaluates operations in an integrated fashion.
Uses both financial and non-financial measures.
Links performance to overall company objectives.
Balanced Scorecard
LO 8 Identify trends in managerial accounting.
Managerial Accounting Today
48. 1-48
Which of the following managerial accounting techniques
attempts to allocate manufacturing overhead in a more
meaningful manner?
a. Just-in-time inventory.
b. Total-quality management.
c. Balanced scorecard.
d. Activity-based costing.
Review Question
LO 8 Identify trends in managerial accounting.
Managerial Accounting Today
49. 1-49
3. ______ Systems implemented to reduce defects in finished
products with the goal of achieving zero defects.
1. ______ All activities associated with
providing a product or service.
2. ______ A method of allocating
overhead based on each product’s
use of activities in making the
product.
Match the descriptions that follow with the corresponding terms.
e
a
d
LO 8 Identify trends in managerial accounting.
50. 1-50
4. ______ A performance-
measurement approach that uses
both financial and nonfinancial
measures, tied to company
objectives, to evaluate a company’s
operations in an integrated fashion.
b
c5. ______ Inventory system in which goods are manufactured or
purchased just as they are needed for use.
LO 8 Identify trends in managerial accounting.
Match the descriptions that follow with the corresponding terms.