...ACCOUNTING IN CONTEXT POTTER I LIBBY I LIBBY I SHORT ACCOUNTING IN CONTEXT BRADLEY N. POTTER University of Melbourne ROBERT LIBBY Cornell University PATRICIA A. LIBBY Ithaca college DANIEL G. SHORT Texas Christian University Boston Burr Ridge, IL Dubuque, IA Madison, WI New York San Francisco St. Louis Bangkok Bogotá Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan Montreal New Delhi Santiago Seoul Singapore Sydney Taipei Toronto Copyright © 2009 McGraw Hill Australia Pty Limited Additional owners of copyright are acknowledged in page credits. Every effort has been made to trace and acknowledge copyrighted material. The authors and publishers tender their apologies should any infringement have occurred. Reproduction and communication for educational purposes The Australian Copyright Act 1968 (the Act) allows a maximum of one chapter or 10% of the pages of this work, whichever is the greater, to be reproduced and/or communicated by any educational institution for its educational purposes provided that the institution (or the body that administers it) has sent a Statutory Educational notice to Copyright Agency Limited (CAL) and been granted a licence. For details of statutory educational and other copyright licences contact: Copyright Agency Limited, Level 15, 233 Castlereagh Street, Sydney NSW 2000. Telephone: (02) 9394 7600. Website: www.copyright.com.au Reproduction and communication for other purposes Apart from any fair dealing for the...
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...NATIONAL ECONOMICS UNIVERSITY BTEC HND IN BUSINESS Assignment Front Sheet | Qualification | Unit Code / Unit number and title | Pearson BTEC Level 5 HND Diploma in Business (QCF) | F/601/0864 QCF level: 4Unit 10 Financial Accounting and Reporting | Student name NEU Student Number / BTEC Registration Number | | | | Assessor name(s) | Noel Farquharson | Le Quang Dung | Date issued | Submission deadline (for both hard copy and Turnitin) | May 7th 2015 | May 22nd 2015 | | | Assignment title | Interpreting financial statement | Student to indicate clearly on the Evidence (Page no) their answers against the following assessment criteria that can be found. | Learning Outcome | Learning outcome | Assessment Criteria | In this assessment you will have the opportunity to present evidence that shows you are able to: | Task no. | Evidence(Page no) | LO4 | Be able to interpret financial statements | 4.1 | Calculate accounting ratios to assess the performance and position of a business | 1&2 | | | | 4.2 | Prepare a report incorporating and interpreting accounting ratios, including suitable comparisons. | 3 | | Student declaration | I certify that the work submitted for this assignment is my own. I have clearly referenced any sources used in the work. I understand that false declaration is a form of malpractice.Student signature: ...
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...Running head: AUDITING Auditing Joey Willoughby OMM622 Financial Decision Making Instructor: Wayne Hollman August 11, 2014 Auditing This inquiry will exemplify what the staff should anticipate auditors to do should auditors come into a division as part of an organizational – wide audit prior to issuing an audit opinion for the organization’s financial report. What precisely can an auditor ascertain from the examination of an organization’s financial report, and what can the audit provide? According to Merriam-Webster, 2014 an audit is a stylized scrutinization and verification of an organization’s or individual’s financial reports or financial position. This procedure is deemed crucial for the verification of the exactness of an organization’s financial reports. Based on information provided by Epstein, 2014 the audit process incorporates three instrumental gradations, interpreting the extent of the audit, executing fieldwork, and finally writing the audit report. In interpreting the extent of the audit, the auditor essentially has an encounter with top management and an internal council of the board of directors. The audit may embody a consummate inspection of the organization’s...
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...Executive Committee and the Board of Directors. In preparing this report, you should set it out such that it contains the following sections : 1. Executive Summary. The executive summary should be no more than 200 words and explains the overall recommendations. By reading the executive summary, one may be able to capture the most important points from the report, without necessarily knowing the details. 2. Background of the Project. This part should explain briefly the nature of the project as well as its objectives in the context of the company’s objectives. 3. Product Portfolio Summary. This part should describe the product and also the portfolio which is being studied. Explain the key statistics of the portfolio. 4. Pricing Spreadsheet Model Summary. This part describes briefly the structure of the model being used to perform this exercise. 5. Results Summary. The results should comprise the key figures to completing the project and addressing the key issues you would expect the Board and the Executive Committee to have in their decision making process. This part should make use of some tables and figures. 6. Recommendation. You should present your findings and recommendations given the results, with reference to various factors including (but not necessarily all) the economy, the competitors, the policyholders, company financial and capital needs as appropriate. You will be marked according to the following criteria : • Business Knowledge (20%). This aspect relates to your...
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...Interpreting Financial Results FIN/571 – Foundations of Corporate finance February 4, 2016 Abstract This summary examines Marathon Oil Corporation’s financial statements from the past three years. Financial ratios such as liquidity ratios, leverage ratios, and solvency ratios are discussed and interpreted against the company’s historical data and compared to industry benchmarks. The financial ratios will be used to determine the company’s current financial position how they rank compared to other industry companies. Interpreting Financial Results A financial ratio is an effective instrument that is used in conducting company analysis. These ratios are also useful in important business decision making (Hoskin, Fizzell & Cherry, 2014). There are a number of financial ratios that can be used to conduct analysis. The aspect of the financial comparisons that are under question, determines which financial ratios are best to use. Marathon Oil Corporation is an independent international company and was originally called Ohio Oil Corporation. The organization was originally established in 1887 (Marathon Oil, 2015). As of today, Marathon Oil continues to pull in profits despite the tremendous drop in oil prices. Marathon Oil functions as an energy company and operates in three segments. The company supplies products and services to both large and small organizations. Marathon Oil’s financial data, for years 2014, 2013, and 2012 shown below, provides a clear...
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...The Transplant Financial Coordinator is part of a committee that determines if patients meet requirements for the kidney transplant waitlist with the United Network of Organ Sharing (UNOS). The Transplant Financial Coordinator acts as a liaison to Patient Financial Services, hospital and professional third party. This position works along with the other Transplant Financial Coordinator in the Kidney Transplant Program to ensure that patients maintain adequate coverage before, during and after transplant; facilitate the flow of medical records data to assure accurate and prompt reimbursement, data collection and clinical data analysis. The role of the Referral Specialist included obtaining and completing insurance information, benefit verification, and interpreting benefits. She documented and...
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...Accounting -- Recording, classifying, summarizing and interpreting of financial events and transactions in an organization to provide interested parties needed financial information. Managerial Accounting -- Provides information and analysis to managers inside the organization to assist them in decision making. Public Accountants -- Provide accounting services to individuals or businesses. Auditing -- Reviewing and evaluating the information used to prepare a company’s financial statements. Financial Statement -- A summary of all the financial transactions that have occurred over a particular period. Assets -- Economic resources owned by a firm. Items can be tangible or intangible. Net Income/Net Loss -- The revenue left over or depleted. Revenues- is the monetary value a firm received for goods sold, services rendered or other payments. Promotion Mix -- The combination of promotional tools an organization uses; the traditional mix includes: Advertising, Person selling, Sales Promotion, and Public Relation. Advertising -- Paid, non-personal communication through various media by organizations and individuals who are in some way indentified in the message. Infomercial -- A full length TV program devoted exclusively to promote a particular product. Personal Selling -- The face-to-face presentation and promotion of a product, including the salesperson’s search for new prospects and follow-up service. Public Relations (PR) -- Evaluates public attitudes, changes policies...
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... | | |School of Business | | |ACC/230 (11/05/2012 – 01/20/2013) | | |Financial Reporting: Peeking Under the Financial Hood | Copyright © 2009, 2007 by University of Phoenix. All rights reserved. Course Description In this course, students will learn to analyze financial statements and methods used to value companies. Financial reports help managers choose between business paths. They also help investors and analysts evaluate the financial health of companies. This course is a practical means of discovering how financial data are generated and their limitations; techniques for analyzing the flow of business funds; and methods for selecting and interpreting financial ratios. It also presents analytical tools for predicting and testing assumptions about a firm’s performance. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies: This document is posted in the Course Materials...
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...Analyzing a Summary Analysis for Candela Corporation Analyzing a Summary Analysis To analyze a statement of cash flow means to investigate the cash flow of a company's operations, and study the cash inflows and outflows. Candela had severe growth in 2002 that severely affects the net cash of operating activities. Analyzing the cash flow may have given Candela the opportunity to change its cash from operations. An analysis of a cash flow will give the reader an indication of what changes would improve the company's growth. A cash flow statement divides three functions of a business into operating, investing, and financing. Interpreting the information is essential for a creditor, banker, investor, or even management. The cash flow provides details of cash changes between the periods of other statements. One of the most important factors is how the cash outflow reduces the inflows, and the effect each may have on operations. The details from the cash are taken from the balance and income statements (Fraser & Ormiston, 2007).. The Candela Corporation provides laser systems for the medical field. Performance of laser treatments are cosmetic, or necessary removal of a variety of undesirable physical appearances. Candela provides laser systems worldwide. An increasing desire of improving physical appearance among Baby Boomers contributes to Candela's growth in the 1990s (Fraser & Ormiston, 2007). In 2002, Candela's consolidated cash flow statement shows a net cash from operations...
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...intricacies relating to their return on investment (ROI) is equally important as the ratios that affect each accounting principal. Our team reflection permitted us to share relevant information about our daily profession classroom experience. Engaging in personal dialogues with our team help reinforce curriculum through self-questioning, peer generated inquires in the classroom, and question answered from different points of view. We understand that both reports provide a snapshot of the business financial status at a particular juncture in time. However, interpreting data over a span of time appears daunting. The data on these sheets feature assets, liabilities and equity during a specific time of the year, whether it’s monthly, quarterly, or annually. Assets have monetary value and are usually categorize on the balance sheet. Under normal circumstances, these resources either generate cash or the end users deplete the finish goods. On occasions additional financial backing is needed to invest or expand. Lenders can review balance sheets to determine what the company owes compared to what they own. Bankers can then make informed decisions to determine whether or not the business qualifies for additional funding. The balance sheet helps us understand the health of the company. A liability represents payables to creditors. Some accountants refer to this as claims against the company’s assets. Liabilities and equity mirror each other on the report because both...
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...Process Execution User’s Guide Release 11i June 2002 Part No. A97685-01 Oracle Process Manufacturing Oracle Process Manufacturing Process Execution User’s Guide, Release 11i Part No. A97685-01 Copyright © 1996, 2002, Oracle Corporation. All rights reserved. Primary Author: Richard D. Persen Glenn Ruhl, Gina Walsh Contributing Authors: Contributors: Paul Schofield, Karen Theel The Programs (which include both the software and documentation) contain proprietary information of Oracle Corporation; they are provided under a license agreement containing restrictions on use and disclosure and are also protected by copyright, patent and other intellectual and industrial property laws. Reverse engineering, disassembly or decompilation of the Programs, except to the extent required to obtain interoperability with other independently created software or as specified by law, is prohibited. The information contained in this document is subject to change without notice. If you find any problems in the documentation, please report them to us in writing. Oracle Corporation does not warrant that this document is error-free. Except as may be expressly permitted in your license agreement for these Programs, no part of these Programs may be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without the express written permission of Oracle Corporation. If the Programs are delivered to the U.S. Government or anyone licensing...
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...or clerks, bookkeepers perform some of the same daily tasks as do accountants and certified public accountants. Many bookkeepers work as freelancers for small businesses in need of financial recordkeeping. Bookkeepers maintain daily accounting records, posting debits and credits, generating invoices for clients and checks for vendors as well as handling payroll. Many small business owners often double as bookkeepers. Bookkeepers typically lack the education of an accountant or CPA, as they gain on-the-job experience. Professional organizations for bookkeepers help to improve professional recognition for bookkeepers by accounting professionals as well as providing certification programs of abilities and skills. Accountants Accountants have a four-year college degree. While many accountants have an educational background in accounting, some are more general business majors. Companies that generate more than a million dollar in sales each year might have an accountant on staff or hire the services of a professional accountant from an accounting firm managed by a certified public accountant. As the company grows, the accounting department expands to handle the increased fiscal responsibilities within the organization. Accountants work with accounting clerks and technicians who handle daily financial entries. Accountants oversee or perform billing, make general ledger entries, review accounts payable activity completed by clerks or...
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...policies that must be revised. - programs actions that demand modifications to be truly responsive to complex human existence. The Meaning of Research Research is a multi-faceted human endeavor: 1) To a lot of people , it is a difficult and demanding task. 2) To beginners, it is a complicated process. 3) To students, it is something that must be done to complete a course requirement. 4) To those who value knowledge and the truth, it is a very fulfilling and exciting challenge. What is Research? According to: 1) Aguinaldo (2002) and Calderon (1993) – research is a "a purposive, systematic, and scientific process of gathering, classifying, organizing, presenting, analyzing and interpreting data for the solution of a problem, for prediction, for invention, for the discovery of truth or for the expansion or verification of existing knowledge, all for the preservation of the quality of life." 2) Sevilla (1998) – defines research as "searching for theory, for testing theory or for solving problem." 3) Andres (1998) – defines research as a "careful, critical inquiry or examinationin seeking facts or principles; a diligent investigation to ascertain something. It is unbiased investigation of a problem." Characteristics of Research: 1) It is systematic –The procedure to be followed must be orderly, disciplined and organized. 2) It is controlled – Observation must be controlled and not haphazardly...
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... * Business Organizations will be of different forms- Sole Proprietorship , Partnership Firm, Joint Stock Company and Others like cooperative, non-profit making etc. * Such organizations need to take different decisions for their business activities. * Financial information is needed for decision making purpose. * Book keeping and Accounting will provide such information. * Meaning of Financial Accounting * Process of identifying, measuring, classifying, recording, summarizing and interpretation of the transactions of a business in terms of money to ascertain the result and financial position of business activities of particular period. * Accounting is the art of recording, classifying and summarizing, in a significant manner and in terms of money, transactions and events which are in the part at least, of a financial character and interpreting the results there of.- AICPA * Its features are- * Financial language * Financial information * Systematic process * Functions * Information system * The Purposes of Financial Accounting The objectives of accounting are- * To maintain records- * To generate accurate and authentic information, all the financial activities needs to be remembered which will not be possible without keeping records. As accounting helps to memorize all the transactions with records, it is the objective of accounting. * To ascertain operating results- * Accounting ascertains whether...
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...Capital structure Issues: What is capital structure? Why is it important? What are the sources of capital available to a company? What is business risk and financial risk? What are the relative costs of debt and equity? What are the main theories of capital structure? Is there an optimal capital structure? 1 What is “Capital Structure”? Definition The capital structure of a firm is the mix of different securities issued by the firm to finance its operations. Securities Bonds, bank loans Ordinary shares (common stock), Preference shares (preferred stock) Hybrids, eg warrants, convertible bonds 2 What is “Capital Structure”? Balance Sheet Current Assets Current Liabilities Debt Preference shares Ordinary shares 3 Fixed Assets Financial Structure What is “Capital Structure”? Balance Sheet Current Assets Current Liabilities Debt Preference shares Ordinary shares Fixed Assets Capital Structure 4 Sources of capital Ordinary shares (common stock) Preference shares (preferred stock) Hybrid securities Loan capital Warrants Convertible bonds Bank loans Corporate bonds 5 Ordinary shares (common stock) Risk finance Dividends are only paid if profits are made and only after other claimants have been paid e.g. lenders and preference shareholders A high rate of return is required Provide voting rights – the power to hire and fire directors No tax benefit...
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