Financial statements Essays

  • Financial Statements: The Five Types Of Financial Information

    1959 Words  | 8 Pages

    The basis of financial planning analysis and decision making is the financial information. Financial information is needed to predict, compare and evaluate a firm’s earning ability. It is also required to aid in economic decision making investment and financing decision making. The financial information of an enterprise is contained in the financial statements. Financial Statements have been widely defined in the extant literature by scholars and experts. According to the Companies and Allied Matters

  • Financial Ratio Analysis In Financial Statements

    1908 Words  | 8 Pages

    of Financial Statements. Ratios are used as a yardstick for evaluating the financial condition and performance of a firm. Analysis and interpretation of various accounting ratios gives a better understanding of financial condition and performance of the firm in a better manner than the perusal of financial statements. Brigham and Houston (2011) stated that ratios help us evaluate financial statements. Financial statements analysis involves careful selection of data from financial statements for

  • Three Basic Financial Statements

    1245 Words  | 5 Pages

    three basic financial statements, and what major information does each contain? Please explain in detail. A Financial Statement is a document for reporting business financial performance and resources. The basic three financial statements are: 1- Income statements: The Income Statement shows the revenue and expenses for specific year (period of time) to determine the company’s profit or loss by comparing the revenues with its expenses. The information listed on the income statement is mostly in

  • Financial Statement Analysis In Society

    1040 Words  | 5 Pages

    Financial Statement Analysis is the preparations of financial statements i.e. balance sheet and trading and profit and loss account. Financial statement analysis can be termed as the method of assessing performance, financial position of an organization. Most of the decisions that organizations would like to take are based on these assessment. Business is mainly concerned with the financial activities. In order to ascertain the financial status of every business enterprises prepares certain statements

  • Explain The Goals And Objectives Of Users Of Financial Statements

    701 Words  | 3 Pages

    1.2 Goals and objectives of users of financial statements The main objective of financial reporting is to provide useful information to investors, creditors, and other interested parties. Financial reporting provides useful information about the firm's economic resources, claims against those resources, owners' equity, and changes in resources and claims. Perfectly, financial reporting provides company shareholders and other stakeholders like employees, communities, customers, and suppliers with

  • Scope Of Financial Statement Analysis

    782 Words  | 4 Pages

    Scope of Financial statements analysis: International Financial statement analysis Robinson, Greuning, Henry, Broihahn 2009, According to Framework for the Preparations and presentation of financial statements (international Accounting Standards Committtee, 1989)The role of financial reporting by companies is to provide information about their performance, financial position, and changes in financial position that is useful to a wide range of users in making economic decisions. The purpose of financial

  • Apple Financial Statement Analysis

    3095 Words  | 13 Pages

    1. INTRODUCTION This financial statement analysis consists of Microsoft Corp. and Apple Inc. for the year 2013, 2012, and 2011. Annual reports of Microsoft Corp. and Apple Inc. are used to analyze the financial statements for the year 2013, 2012, and 2011. This analysis is essentially focused on four different financial areas. They are liquidity ratio, profitability ratio, efficiency ratio, and cash flow statement. This financial statement analysis report includes three years historical comparisons

  • Common Trend Analysis: Common Size Financial Statement

    820 Words  | 4 Pages

    2) Common size financial statement analysis: The common 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:

  • Case Study: Accounting Fraud Case: Xerox

    1061 Words  | 5 Pages

    technologies for a majority of their early history. However, at the end of the 20th century, Xerox experienced new competition as they ventured into different printing technologies. Attempting to keep stockholders happy and appear to be in good financial standing, Xerox made changes to their accounting records, which were approved by both Xerox executives and their audit firm, KPMG. Background Xerox put a majority of their revenue towards research and development, which varied in its success. In

  • Investment Decision Making Case Study

    860 Words  | 4 Pages

    set out to study the role of financial statement in investment decision making. (A case study of First Bank of Nigerian plc.). From the test of hypotheses, we discovered the following; 1. Financial statement is used to be relied upon in investment decision making. 2. Financial statements are useful for forecasting company’s performance. 3. There is a positive and significant relationship between financial statement and investment decision making. 4. Financial statements provide various facts of a business

  • Financial Statement Review: Starbucks

    1114 Words  | 5 Pages

    FINANCIAL STATEMENT REVIEW Financial Statement Review The Starbucks is the corporation selected for the financial statement review. The first Starbucks opened in 1971, back then, the company was just a single store in Seattle’s historic Pike Place Market. The name, inspired by Moby Dick, evoked the romance of the high seas and the seafaring tradition of the early coffee traders. From the foundation, Starbucks set out to be a different kind of company. Equivalent sales for the quarter rose 2% in the

  • Delhi DCO Limited: Case Study: Delhi Transco Limited

    6797 Words  | 28 Pages

    1. INTRODUCTION 1.1 ABOUT THE COMPANY Delhi Transco Limited, a successor company of erstwhile Delhi Vidyut board came into existence on 1st July 2002, as a State Transmission Utility of the National Capital. After unbundling of DVB the distribution sector has been handed over to private companies while the generation and transmission are still with the government. Over the years, DTL has evolved as a most dynamic performer, keeping pace with the manifold challenges that confront the ever increasing

  • Accounting Memo Analysis

    1616 Words  | 7 Pages

    conclusion. iv. Conclusion • This step in an accounting research memo summarizes the main points from analyzation and describes the conclusion after gathering the supporting facts. v. Financial Statements and Disclosure • In this final step, a research lists any necessary journal entries, potential financial statement impacts, and required disclosure that is needed. 3. What are the six characteristics the AICPA defines for creating an effective essay or memo? Describe 2. i. Coherent

  • Annual Report Conclusion

    1314 Words  | 6 Pages

    accountability. Mr. Tan Hock Yew emphasized that the most important in the annual report is the chairman’s statement. It was the most essential element in the annual report read by most private shareholders. However, it is depend on what types of audience who read the annual report. If the annual report is read by the investors, it will be different. What the investors concerned is the financial statement that define the improvements or the profits of the year.

  • Effects Of Financial Statement Fraud

    1200 Words  | 5 Pages

    on the quality of life“. [1] Financial fraud can be broadly defined as an intentional act of deception involving financial transactions for purpose of personal gain. Fraud is a crime, and is also a civil law violation. Many fraud cases involve complicated financial transactions conducted by 'white collar criminals' such as business professionals with specialized knowledge and criminal intent. Fraudsters can

  • Deductive Reasoning In Accounting

    1398 Words  | 6 Pages

    costs, values, income, and capital and surplus (AAA, 1936). This was not a comprehensive financial accounting theory, it was merely a theoretical review of some of the specific accounting practices using a deductive approach. This statement strengthened the conservatism and historical cost accounting principles and supported a comprehensive concept of income. Later on, Paton and Littleton extended the 1936 statement of AAA (Paton & Littleton, 1940). It can be claimed as the first institutional attempt

  • Ethics And Ethics In Accounting

    1160 Words  | 5 Pages

    fact either small or big business need to have accountant to avoid any losses and flow with right direction by using accounting systems. Accounting is a systematic recording the financial statements for each business in a specific way. There is more than one way to show and provide a figure of the performance, financial position and cash flow of the business. Background The history

  • Accounting System In Accounting

    746 Words  | 3 Pages

    Generally, accounting is an information system that creates information about the financial circumstances of an organization and transmit data to relate parties about the arrangement of wellspring of the organization, the adjustment of these sources are due to the operation of the organization and to be more particular, for the purpose of certain stakeholder from the organization. All companies are responsible for keeping a journal, ledger, wherein journal transaction are combined together and inventory

  • The Pros And Cons Of Fraud

    1242 Words  | 5 Pages

    according to Adeniji (2014) is an intentional act by one or more individuals among management, employees or third parties, which results in a misrepresentation of financial statements. Fraud can also be seen as the intentional misrepresentation, concealment, or omission of the truth for the purpose of deception or manipulation to the financial detriment of an individual or an organization which also includes embezzlement, theft or any attempt to steal or unlawfully obtain, misuse or harm the asset of

  • Fraud Literature Review

    3300 Words  | 14 Pages

    corporate collapses however, there are two types of risk factors that leads to fraudulent in the business where one of them is misappropriation of assets and another one is fraudulent in financial reporting. The main purpose of this project is to state some of the risk factors that are associated with the fraudulent financial reporting in a business and also state the responsibilities of the auditors when fraud is present in a business. LITERATURE REVIEW Duffield and Grabosky (2001), defined