pay its obligations? Chief Financial Officer Creditors Investors in common stock Marketing managers Multiple Choice Question 99 Which of the following financial statements is divided into major categories of operating‚ investing‚ and financing activities? The income statement. The balance sheet. The statement of cash flows.
Premium Income statement Generally Accepted Accounting Principles Financial statements
recorded in: General Journal: Chronological record of an organization’s transactions and how each transaction affects the balances in particular accounts General Ledger: Collection of all ledger accounts that supports an organization’s financial statements Ledger account: Listing of all the increases and decreases in a particular account Copyright © 2014 Pearson Education‚ Inc. Publishing as Prentice Hall. 3-6 General Ledger: TAccount Device used to portray individual ledger accounts in the general
Premium Double-entry bookkeeping system Balance sheet Revenue
opinion on the financial statements? On page 53 of the Green Mountain Coffee Roasters‚ Inc 10-K Annual Report‚ they state that PricewaterhouseCoopers LLP‚ an independent registered public accounting firm‚ has audited the effectiveness of the Company’s internal control over financial reporting. They provide a clean opinion on the financial statements. On page F-2‚ the auditor had written a note stating‚ “In our opinion‚ the accompanying consolidated financial statements present fairly‚ in all material
Premium Generally Accepted Accounting Principles Balance sheet Income statement
WorldCom regrettably illustrates improper cost transfers designed to achieve higher profit levels. WorldCom did not transfer the cost from leases from the balance sheet to the income statement as quickly as they should have. This had the effect of overstating assets on the balance sheet and net income on the income statement. Please watch this section of American Greed: Inside the WorldCom Scam: http://www.screencast.com/t/zBXF74I1sao You can watch the entire documentary here: http://www.hulu.com/watch/46554
Premium Income statement Expense Operating expense
Financial Statement Analysis: • the process of properly establishing the relationships between the items of the IS & BS‚ correlating them until hidden meanings are unraveled; interpreting the information to identify the financial strengths and weaknesses of the firm in comparison to other firms in the same industry. Understanding the Financial Statements: Income Statement • Basically‚ the income statement shows how much money the company generated (revenue)‚ how much it spent (expenses) and
Premium Generally Accepted Accounting Principles Income statement Balance sheet
equipment. Borrowing money from a bank. Selling stock. Paying off a loan. MC Qu. 117 Net Income: Net Income: Decreases equity. Represents the amount of assets owners put into a business. Equals assets minus liabilities. Is the excess of revenues over expenses. Represents owners’ claims against assets. MC Qu. 150 The statement of cash flows reports all of t... The statement of cash flows reports all of the following except: Cash flows from operating activities. Cash
Premium Generally Accepted Accounting Principles Balance sheet Income statement
accounting and financial statements are the means for communicating the numbers (Weygandt‚ 2007). This means of communication is primarily done via financial statements. In the classic movie Jerry Maguire‚ Cuba Gooding Jr’s famous line‚ “Show me the money!” explains what financial statements do. They show individuals the money. They show individuals where a company’s money came from‚ where it went‚ and where it is now (SEC). There are four types of financial statements. They are: (1) balance
Premium Income statement Generally Accepted Accounting Principles Balance sheet
------------------------------------------------- 1.Introduction The Titas Gas Transmission and Distribution Company is the largest natural gas distributor in Bangladesh. This section includes a brief description of the company‚ the industry structure in which it belongs‚ financing and dividend policy and the industry analysis. ------------------------------------------------- 1.1Company Description Corporate Information Name of the Company | : Titas Gas Transmission and Distribution
Premium Natural gas Dividend Leverage
pay for those debts‚ they were adding even more risk of ensuing failure. The income statement presents the facts that while the cost of sales had increased in each of the past two years; the gross profit had significantly decreased. With material costs increasing by 8%‚ the evidence is clear that L.A. Gear was not controlling its cost of sales‚ including the selling‚ general and administrative expenses. The income taxes had decreased‚ but that was most likely due to the decline in sales. By
Premium Generally Accepted Accounting Principles Income statement Expense
Residual income models take a variety of forms. Regardless of form‚ residual income is the income generated in excess of that which was expected‚ given the amount of capital invested and the cost of that capital. Residual income is often used for valuation purposes and for determining compensation for management. With clean surplus accounting‚ residual income is equivalent to the dividend discount model. However‚ by incorporating non-accounting information‚ the residual income model allows
Premium Free cash flow Income Income statement