Balance sheet Essays

  • Case Study: Balance Sheet And Income Statement

    836 Words  | 4 Pages

    week, so state in the submission area. 2. Present your solutions to the textbook problems here. Keep the problems in the order listed in the syllabus. If none for the week, so state in the submission area. 16-A1 Balance Sheet and Income Statement Weikart Company Balance Sheet December 31, 20X0 Assets Amount ($) Current Assets: Cash and equivalents $55,000 Accounts receivable, net 48,000 Inventories 36,000 Prepaid expenses 15,000 Interest income 15,000 Total Current Assets:

  • Bank Balance Sheet Analysis

    903 Words  | 4 Pages

    Dissecting a Bank’s Balance Sheet In this essay we would investigate the balance sheet of XY Bank and try to find out how a bank’s balance sheet is different from that of a company. We would also describe why bank managers prefer loans over securities and whether 4% cash reserves of the bank are adequate for its capital-adequacy management. Why Banks’ Balance Sheet differ from that of a Typical Company First, let us discuss why and how a bank’s balance sheet is different from that of a company.

  • Cash Flow Analysis

    1301 Words  | 6 Pages

    Can you cite examples of how a firm's Balance Sheet accounts activity from one year to the next will determine the cash flow for the various accounts? Answer: Keown, Martin and Petty (2011) states that a firm’s income statement reports the results from operating the business for a period of time, such as one year. The firm’s balance sheet provides a snapshot of the firm’s financial position at a specific point in time, presenting its asset holdings, liabilities, and owner supplied capital (stockholders

  • Ex-Post Income Case Study

    928 Words  | 4 Pages

    Question No 3 a) Explain the concept of ex-ante income and ex-post income. b) Why is it necessary to take into account the closing stock in preparing a trading account? c) What is the difference between a balance sheet of a nonprofit organization and a for-profit business? Concept of ex-ante income and ex-post income EX-ANTE EX-ANTE is a word derived from Latin for ‘before the event’, this term refers to future events such as

  • Three Basic Financial Statements

    1245 Words  | 5 Pages

    to the shareholders, or the owners, of the company. The proof of this balancing act is shown in the balance sheet when Assets = Liabilities + Equity. I can say that the balance sheet is the financial statement showing the health of a business from the first day to the date on the balance sheet. So, unlike the income statement, which is for a specific time period (month or year) the balance sheet is all inclusive

  • Outstanding Expenses In Accounting

    864 Words  | 4 Pages

    at the end of an accounting period to show true number of a business. Outstanding expenses shown as a expenses in income statement and current liabilities in the balance sheet at the end of year. Journal entry for outstanding Expenses is Expenses a/c Debit Outstanding expense a/c Credit Example for outstanding expenses. In trial balance wages is $3200 In the adjustment It says wages amount to $300 were outstanding at 30th September

  • Ratio Analysis Of Nestle

    1010 Words  | 5 Pages

    by substituting the figures: 13163 = 49.485 = 49.49 14) Working Capital Sourced from: Balance Sheet Formula: Working Capital = Total Current Assets − Total Current Liabilities Calculating by substituting the figures: 32042 – 37,517 million CHF = (5,475) million Nestle has (5,475) million CHF in working capital Efficiency Ratios 15) Asset Turnover Ratio Sourced from: Income Statement, Balance Sheet The formula: Asset Turnover Ratio = Sales / Average Total Assets Calculating by substituting

  • Types Of Budget

    793 Words  | 4 Pages

    Three important financial budgets are the cash budget, capital expenditure budget and the balance sheet budget. Cash budget Cash budgets are forecasts of how much cash the organization has on hand and how much it will need to meet expenses. The cash budget helps managers determine whether they will have adequate amounts of cash to handle required

  • Financial Intermediation Case Study

    725 Words  | 3 Pages

    What do we mean by “off-balance-sheet” activities? If these things are not on the balance sheet, are they important? What are some off-balance-sheet activities? An asset, debt or financing activity is not on the company 's balance sheet. It is necessary to manage the risks of these activities. For example credit risk is the most important risk to manage. Some of the activities in the off-balance-sheet are fees, loan sales, and derivatives trading help banks to

  • Scope Of Financial Statement Analysis

    782 Words  | 4 Pages

    The income statement and statement of cash flows portray different aspects of a company’s performance over a period of time. The balance sheet portrays the company’s financial position at a given point in time. Owner’s equity provides information about the changes in a company ‘s financial position. Owner’s equity is part of the balance sheet. Income statement: The income statement presents information on the financial results of a company’s business activities over a period of time

  • Credit Risk Mitigation Case Study

    1190 Words  | 5 Pages

    Credit Risk Mitigation Bank has put in place Board approved ‘Credit Risk Mitigation and Collateral Management Policy’ which, interalia, covers policies and processes for various collaterals including financial collaterals and netting of on and off balance sheet exposure. The collaterals used by the Bank as risk mitigant comprise of the financial collaterals (i.e. bank deposits, govt./postal securities, life policies, gold jewelry, units of mutual funds etc.). Guarantees, which are direct, explicit, irrevocable

  • Advantages And Disadvantages Of Budgeting

    938 Words  | 4 Pages

    oes not necessarily result in useful information.. Budgeting Businesses need to plan for the future and one of the ways of planning for the future is to prepare a budget so that actual information and results can be compared with the expected information in the budget. ‘A budget is a quantitative expression of a plan for a defined period of time. It may include planned sales volumes and revenues; resource quantities, costs and expenses; assets, liabilities and cash flows’ (The Chartered Institute

  • Gross Profit Ratio Analysis

    765 Words  | 4 Pages

    YEAR 2011-12 YEAR 2012-13 YEAR 2013-14 Net profit 154934661 106809408 144998428 269627290 Net sales 2803991190 2432000039 3723126686 3957679398 Net profit Ratio% 5.535 4.39 3.89 6.81 Sources of data collection are Annual report and balance sheet Net profit Ratio = Net profit

  • Finance In Modern Business

    2540 Words  | 11 Pages

    A balance sheet is prepared only after the completion of the trading and profit and loss account because the net profit or net loss, as shown by the trading and profit and loss account is to be adjusted in the capital of the proprietor in the balance sheet. ii. A balance sheet is prepared with the help of all the balances of real and personal accounts appearing in the trial balance and the various adjustments made at the time of the preparation

  • Role, Objectives And Limitations Of Financial Accounting

    734 Words  | 3 Pages

    explains the financial accounting process in different business entities. The accounting process requires organizations to provide detailed and accountable statements regarding their firms’ activities. The statements range from income statements, balance sheets and the cash flows statements. The different statements have various roles, goals and limitations pertaining to each one of them. The paper also tends to explain the need and origin of the regulations of the contents

  • Blue Sky Airlines Case Study

    1099 Words  | 5 Pages

    both approaches establish a liability on the balance sheet. The amount of the liability, and therefore the impact on the company’s net income will be larger under the deferred income approach than under the marginal cost approach. Although the deferred income method results in less income reported the periods in which liabilities are incurred, greater revenue recognition opportunities will be available realise of the deferred income from the balance sheet and into the income statement upon the redemption

  • Disadvantages Of Accrual Basis Accounting

    2413 Words  | 10 Pages

    the financial information required in the form of general purpose financial statements. This process is to record transactions and detect expenditure and revenue to make this data by means of a financial information presented in the form of a balance sheet, income statement, and statement of owner 's equity and cash flow statement. Beginning with the transaction process and ends with the closing of the book. This process is repeated each reporting period. This process is known as the accounting cycle

  • Common Trend Analysis: Common Size Financial Statement

    820 Words  | 4 Pages

    size statements (i.e. balance sheet & income statement) are shown in analytical percentages. The figures of these statements are shown as percentage of total assets, total liabilities & total sales respectively. Take the example of balance sheet, the total assets are taken as 100 & different assets are expressed as a percentage of the total. Similarly, various liabilities are taken as a part of total liabilities. (a) Common size balance sheet: A statement where balance sheet items are expressed in

  • Long Term Liabilities In Accounting

    1330 Words  | 6 Pages

    They are comprised of four main components, of which the balance sheet and the income statement are essential. The first item to consider when looking at a set of financial statements is whether these are external financial statements or internal financial statements. INTERNAL FINANCIAL STATEMENTS Internal financial

  • Impact Of Globalization In Accounting

    1102 Words  | 5 Pages

    because all recorded amounts are verifiable through clear evidences such as invoices, receipts and regular vouchers. Plus, according to historical cost accounting method supporters, without the past data which was provided by historical value on balance sheet and income statements, the users of financial report cannot forecast the future financial situations of enterprises. On the other hand, comparing to the traditional historical cost accounting, fair value measurement is argued to be unreliable measurement