The information you get from the cash flow statement can help evaluate the company’s ability to meet its obligations. The lecturer also shown some format examples of the statement of cash flow. Besides that, the lecturer also show as the steps in constructing the statement. Overall, I have learnt that the cash flow basically is the money inflows and outflows. I can
Corporate governance essentially involves balancing the interests of the many stakeholders in a company - these include its shareholders, management, customers, suppliers, financiers, government and the community. The King (III) 4. The purpose of an audit is to provide an objective examination of the financial statements, which increases the credibility and value of the financial statements produced by the company. It therefore increases user confidence of financial statement, reduce investor risk and consequently reduce the cost of capital of the preparer of the financial statements. The statements were audited by PwC.
DISADVANTAGES Long term financial development puts an awful effect on the inhabitants of any nation. Long term economic developments may be identified with expansion, as inflations may increase. Inflations usually increase the cost of products on sale, and as the costs are higher, it will be an issue to the nationality in question to be able to buy their needs There is a limited amount of time involved in the growth of an economy as it involves an increase in GDP. The hypothesis and practice are both diverse. The hypothesis is the thing that economists are able to figure out for themselves; however, to be able to use the hypothesis in reality is the main task.
Financial Accounting is a field of accounting concerned with a company’s financial transactions. It uses standardized accounting guidelines to record, summarize and present the transactions to mainly external users periodically by means of Financial Statements. Creditors and other lenders like banks and other financial institutions, Government Authorities, Prospective Investors, Customers, Competitors and Regulatory Authorities are some of the External Users who may use these Accounting information for various decision making purposes. Managerial Accounting also referred to as Cost Accounting is a branch of accounting that helps in identifying, analyzing interpreting, preparing and communicating both Financial and Non-Financial information
Under this type of analysis, a number of ratios used for measuring the meaningful quantitative relationship between the items of financial statements during the particular period. This type of analysis is useful in comparing the performance, efficiency, and profitability of several companies in the same group or divisions in the same company. In order to avoid the limitations of Comparative Statement, this type of analysis is designed. Under this method, financial statements are analyzed to measure the relationship of various figures with some common base. Accordingly, while preparing the Common Size income statement, total sales is taken as a common base and other items are expressed as a percentage of sales.
The key is not to replicate his value-investing strategy, but is to be different. The key reason why Buffet is successful is because he is different – when he first practiced value investing, the other investors around were chasing after the highest yielding stocks. Similarly, if one wants to be successful today, he or she has to be different from the rest of the investors. However, being different is difficult. It comes with much risk, similar to choosing between the career paths of high-risk entrepreneurship and well-trodden investment banking jobs.
In the world of business, managerial accounting plays a major role to control a business in an effective method. The management accountants of an organization focuses on the forecasting and decision making of that business. The accountants also help to make business planning, reviewing and analyzing the performance of the business. As an consulting management accountant, the report try to focus on the issues like cost controlling, quality control of the products, reviewing the efficiency of the budget and the in-depth cost that is followed by the business. The report not only try to identifies the problem but also consults the business how to get rid of the problems by using product costing methods and how to acievev an effective and efficient
By decentralizing its operations into numerous subsidiaries, Enron was able to hide huge liabilities and derivative losses of their financial statements. However as these started to accumulate, creditors and investors demanded their money back but Enron was unable to meet their requirements with a negative cash flow, thus going bankrupt. Moreover, Enron’s finances were an impenetrable maze of carefully crafted imaginary transactions between the subsidiaries and itself, which masked its true financial state and therefore could not seek help when needed. The importance of internal controls in a business’ corporate culture is established through the beliefs and values of upper management. Enron focused on maintaining the appearance of value rather than creating it, thus fostering a competitive and risk-tasking environment that promoted the use of unethical accounting practises.
In this case, the president and chief executive officer of Valley Systems Matt Tucker notices that his company cannot get the target this quarter. There is a solution which is those larger orders were moved forward so that they shipped in the current quarter, however, choices always have consequences, if they decide do things like that their customers will face different problems. For instance, several small orders would have to be pushed from the existing quarter to the following one, forcing these companies awaiting product to deal with the inconvenience associated with delay, while the customers who have larger orders would be required to pay their products earlier. As a result, the ethical dilemma in this case they will face is reputation
There should not be an increase in minimum wage because it is unhealthy to the economy in the long run and it will be the major cause of job loss, increase in inflation, competition, and the price level of goods and services. Many argue that an increase in minimum wage will help guide low skilled workers out of poverty and assist them into having a better career. That is not necessarily true, Many economists can agree that minimum wage jobs such as cashiers, host or a hostess are not jobs that meant to support a family. If anything by raising the minimum wage, it will put more people in poverty than guide them out of poverty. A raise in minimum wage will cause loss of jobs, an increase in the inflation rate, increase in