Application Of Financial Statements Essay

993 words - 4 pages

Application of Financial Statement

Angela Lance

Professor Kim Dillman

Financial Accounting-ACC557

Assignment # 1

Due Date: February 26, 2012

Application of Financial Statement

Today’s working environment displays different cultures throughout an organization. Companies need to be aware of their financial obligations and responsibilities. The opening of a business has many different perspectives that need to be addressed. Once you open a business you want to stay in business and a way you can do this is by maintaining your financial records and not overspending your earnings. Companies have to be aware and accurate of maintaining their ...view middle of the document...

Just like a balance sheet a checkbook has a debit and credit side. A debit adds money and a credit withdraws the money. Another way a balance sheet would be applied to my everyday life is through investments. Investing is something that even in difficult economic times people are thinking about doing. Using a balance sheet accounting offers investors a great way to keep track of their investments and how they are affecting their budget.3

Using the same concept selected above, discuss how a business manager may benefit from an understanding of this statement.

Financial statements are intended to be useful in decision-making and the relationship between contributed capital and retained earnings can provide insight into the firm’s success to date. The use of managerial accounting provides internal reports to help users make decisions about their companies. Management is a crucial aspect of any thriving business. As a manager you need to analyze a spreadsheet or have some form of financial recording to do as part of your job description. The financial statement contains important information about the organization’s operating results. The relationship between certain items of financial data can be used to identify areas where the company excels and, more importantly where there are opportunities for improvement.4

When a company conducts a business transaction, the status of the accounts change. The bookkeeping process keeps track of these changes in various ledgers and journals and then are used to make the financial statements. A balance sheet indicates the financial position of a business at one point in time and it displays what the business owns and owes. As a manager you should be aware of how much the business owns and how much outstanding debt is owed. A manager of a specific department has to account for all the expenses incurred for that particular department so you do not go over budget. To make good decisions, management needs accurate information and that information comes from the balance sheet within the accounting...

Other Essays Like Application of Financial Statements

Comparison Of Financial Statements For The Sony Corporation And The Google Corporation

1038 words - 5 pages Prof. William C. AudenACC 403Principles of AccountingSubmitted by: Jason K. HauckMODULE 1 CASEIn the following pages I will be discussing several topics to include: the importance of the GAAP (Generally Accepted Accounting Principles), as well as comparing current assets and liabilities to non-current items. I will also review the financial statements for the Sony Corporation and the Google Corporation, locating the balance sheets, income

Need for Financial Statements Analysis

663 words - 3 pages Wake up call to prepare and make use of Financial Statements Analysis: By CPA, Simion Kirui, Member Institute of Certified Public accountants -Kenya Key topic questions: 1. Should Companies issue financial statement discussion and analysis when it issues financial statements? 2. Is there adequate use for Financial Statement Analysis? 3. Will one claim to have understood financial Statements in absence of Financial Statement Analysis? 4

Auditor’s Responsibility When Issuing a Report

1618 words - 7 pages , qualified report, an adverse opinion, or a disclaimer of opinion. In contrast, a qualified report indicates that the auditor has concerns about matters affecting the financial statements (this could include the client’s accounting policies or the method of their application or the adequacy of financial statement disclosure) or the limited scope of the auditor’s work. An adverse report is issued when an auditor “has concluded that the audited financial

Intermediate Financial Accounting

5060 words - 21 pages CHAPTER 1 FINANCIAL ACCOUNTING AND ACCOUNTING STANDARDS IFRS questions are available at the end of this chapter. TRUE-FALSE—Conceptual Answer No. Description F 1. Definition of financial accounting. T 2. Purpose of financial statements. T 3. Definition of financial accounting. T 4. Capital allocation process. F 5. Objective of financial reporting. T 6. Decision-Usefulness approach. T 7. Users of financial statements

Accounting Research

934 words - 4 pages financial statements of government. In addition, the reports for summary and consolidated information of all levels in the governments are unable to perform at the current time. * Application of the accounting basis. Entities in Vietnam are applying different accounting bases. Entities having state budget revenues and expenditures are applying cash basis accounting with adjustments (also tracking advances, receivables, and liabilities

Reviewing Accounting Standards

987 words - 4 pages applied. Not only is it their aim to standardise general purpose financial reporting and to improve the quality of financial reporting across the whole range of reporting entities but to achieve relevant, reliable and comparable financial statements. As the Accounting Standards are often complex and lengthy and with existing standards often changing, one needs to become familiar with how to interpret and access the information in the standards

Literature Review

1375 words - 6 pages From my first accounting class to the last accounting class, one thing I learned how important financial statements are in accounting. All the accounting professors put so important on financial statements because one of their objective is to make sure students are well familiar with financial statement before graduating. Financial Accounting is the procedure of delivering data to the outsiders in a special report call financial statement

Examine the Provisions and Principles of International Accounting Standard 1 (Ias 1)

2070 words - 9 pages a statement of changes in equity as a separate component of the financial statements. The statement must show: [IAS 1.106] • total comprehensive income for the period, showing separately amounts attributable to owners of the parent and to non-controlling interests • the effects of retrospective application, when applicable, for each component • reconciliations between the carrying amounts at the beginning and the end of the period for each

Financial Statements Paper

665 words - 3 pages Financial Statements Paper Accounting information consists several areas of interest for users looking to interact with a business. These areas include assets, liabilities, expenses and revenues. The information reflecting these areas of interest is used to populate financial statements. The backbone of financial accounting is made up of four basic financial statements. These four financial statements are a balance sheet, an income

Accounting

581 words - 3 pages , tedious and irrelevant. However the current debate about whether IFRS drove banker recklessness is getting interesting. The aims of the literature review to discuss how the accounting standards transform into IFRS in the UK market. It has been debated hotly in financial statements. Some people have remained the positive attitudes to IFRS. Armstrong et al (2009) suggest that IFRS is highly quality financial reporting relative to application of

Financial Statement

861 words - 4 pages RUNNING HEAD: FINANCIAL STATEMENTS PAPER Financial Statements Paper ACC 290 Financial Statements Paper In this paper the four basic financial statements will be defined. Each of the four financial statements has its purpose for use. As part of the paper the description of the purpose of the four basic financial statements is acquired. The discussion of the financial statements would be useful to internal and external users is

Related Papers

Purposes Of Financial Statements Essay

2157 words - 9 pages two main purposes of financial statements: 1. To report on the financial position of an entity 2. To show how the entity has performed over a particularly period of time. The most common measurement of performance is profit. It is important to understand that financial statements can be historical or relate to the future. The purpose of financial accounting statements is mainly to show the financial position of a business at a particular

Importance Of Financial Statements Essay

781 words - 4 pages Frederick Cole Burgess ACC 220 Joe Chandler Importance of Financial Statements Financial statements are important reports. They show how a business is doing and are very useful internally for a company's stockholders and to its board of directors, its managers and some employees, including labor unions. Externally, they are important to prospective investors, to government agencies responsible for taxing and regulating, to lenders such

Examination Of Prospective Financial Information And Review Of Financial Statements

2245 words - 9 pages Examination of Prospective Financial Information Definition “Prospective financial information” means information about future financial performance, future financial position, future cash flows, and future movements in equity based on assumptions about future events and courses of action. Prospective financial information includes prospective financial statements, the notes to the prospective financial statements, and any narrative relating

Analysis Of Best Buy’s Financial Statements Of Year Ending February 2014

1861 words - 8 pages MEMORANDUM To: James Harding From: Subject: Analysis of Best Buy’s financial statements of year ending February 2014 Date: 04/12/2015 Introduction: This memorandum is a clear and detailed analysis of Best Buy’s financial statements of year ending February 2014. I have analyzed the statements in the following perspectives: revenues and expenses, assets and liabilities, financial flexibilities, ownership structure, estimations and