own words. Sarbanes-Oxley Act (SOX): This was a regulation passed by the government to prevent immoral corporate behavior. Balance sheet: A balance sheet is a financial statement that shows the assets‚ liabilities and stockholder’s equity. Income Statement: An income statement is a financial report that shows the net income or net loss by reporting the revenues and expenses. External user: External users of accounting information are investors or bankers that need accounting reports see whether
Premium Balance sheet Generally Accepted Accounting Principles Income statement
Running Head: FINANCIAL STATEMENTS Financial Statements Paper Ricardo E Mendoza University of Phoenix Principles of Accounting Sandra Hernandez 21 January 2010 Abstract In this paper I will discuss about the definition of accounting and the different financial statements that are use to monitor all the tangibles that flows within a company and how they relate to each other to control the flow of monies on any given business. Financial Statements Paper What is the purpose of accounting
Premium Income statement Generally Accepted Accounting Principles Balance sheet
Financial Statement Review University of Phoenix ACC/561 Financial Statement Review Introduction Financial statements play a significant role in each and every type of business. The financial statements provide a wealth of information to auditors‚ creditors‚ investors‚ suppliers and other important venues that need access to this type of information. This paper will discuss four different types of financial statements and how they are utilized by vendors‚ creditors and others
Premium Generally Accepted Accounting Principles Balance sheet Income statement
$27‚700‚ 80 percent of which were paid during the year. In addition‚ Rumbo paid $4‚500 for an 18-month advertising campaign that began on September 30. Rumbo ’s accrual-basis net income (loss) for 2009 was a. | $9‚285 | b. | $8‚535 | c. | $14‚075 | d. | $(775) | 2. The 2013 accrual-basis income statement for Razorri Corporation reports sales revenue of $81‚000. The related balance sheet accounts for the beginning and end of the year were | Jan. 1‚ 2013 | Dec. 31‚ 2013 | Unearned
Premium Generally Accepted Accounting Principles Balance sheet Revenue
AUDITOR’S REPORT [pic] [pic] NOTES TO FINANCIAL STATEMENTS 37.3 Fair values of financial assets and liabilities Fair value is the amount for which an asset could be exchanged‚ or a liability settled‚ between knowledgeable willing parties in an arms length transaction. Notes to the Financial Statements for the year ended June 30‚ 2008 (b) Credit risk Credit risk represents the risk of a loss if the counter parties fail
Premium Generally Accepted Accounting Principles Balance sheet Financial ratios
CFIN4 ANALYSIS OF FINANCIAL STATEMENTS 1/21/15 CHAPTER 2 1 1. 2. Describe the basic financial information that is produced by corporations and explain how the firm’s stakeholders use such information. Describe the financial statements that corporations publish and the information that each statement provides. 2 © 2014 Cengage Learning. All Rights Reserved. May not be copied‚ scanned‚ or duplicated‚ in whole or in part‚ except for use as permitted in a license distributed with a certain product
Premium Balance sheet Financial ratios Financial ratio
equity can increase through: Owner contributions and/or Net income Owner’s equity can decrease through: Owner drawings (10 - 15 min.) E 1-24 Req. 1 Net income for American Express Services (AES) is $7‚000‚000‚000. Revenues – Expenses = Net Income $21‚000‚000‚000 - $14‚000‚000‚000 = $7‚000‚000‚000 Req. 2 The owner’s equity increased during the year by* $7‚000
Premium Generally Accepted Accounting Principles Balance sheet Liability
keys are: the rearview mirror. The income statement‚ the balance sheet‚ and the statement of cash flows all combine to show exactly what happened in the past. The income statement is a report generated to show the profitability of the company. It shows sales less expenses during a specified period of time. It is prepared in such a way that the profit after each expense can be determined easily. For example‚ on page 27 of our book is the Income Statement for Kramer Corporation. You can clearly
Premium Generally Accepted Accounting Principles Income statement Balance sheet
SFAC 6 ELEMENTS OF FINANCIAL STATEMENTS ASSETS. Probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events. LIABILITIES. Probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events. EQUITY. Residual interest in the assets of an entity that remains after deducting its liabilities
Premium Asset Time Future
Assessable income=ordinary income + statutory income. Ordinary income: income deriving from the courts (s6-5) Negative propositions: items that are not income by ordinary concepts: 1.Amounts not convertible into money :In Tennant v Smith (1892) free accommodation provided to a bank manager was held not to be ordinary income because building could not be sub-let and the benefit thereby converted to money. In FCT v Cooke & Sherden (1980) an incentive prize offered by a manufacturer was not income of the
Premium Taxation Tax Generally Accepted Accounting Principles