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What financial statement summarizes a company's earnings?
The financial statement that summarizes a company's earnings is the income statement, also known as the profit and loss statement. It provides an overview of revenue, expenses, and profits or losses over a specific period. The income statement allows stakeholders to assess the company's financial performance and profitability.
What is the statement of retains earning and what information does it provide?
The statement of retained earnings is a business statement that illustrates the total retained earnings by a company at the end of a period. Basically the statement starts with retained earnings from the previous period, then adds any gains (on investments) and subtracts any losses (dividends declared, goodwill, discontinued operations). You are then left with the retained earnings for the current period.
What is the main motivations for companies to engage in earnings management?
Mainly to: 1.0 Ensure that the revenue stream is consistant with the cost structure, and so ensure that the company remains profitable 2.0 Analysis of the earnings will allow for the timeous implementation of plans, if the earnings fall 3.0 Earnings management also allows the company to check ratios such as price/earnings etc, so as to ensure investor interest in the company's shares
Describe a balance sheet income statement retained earnings statement and statement of cash flows How does a company use these financial sta?
To check on the financial position of the company eg: payables and receiveables
What is the difference between fraud and earnings management?
Both involve the intent, by reporting management, to distort their company's earnings picture, but fraudulent accounting does so by violating generally accepted accounting standards (GAAP) while earnings management does so within GAAP.
What role does mission statement play in strategic management of an organization?
The mission statement gives a written statement of the overall, broad goals of the company. The strategic management of the company ultimately helps the organization to reach their overall mission statement.
What is the base word of accompany?
Accompany
A company's founders or top management will express their vision in a mission statement?
mission statement
What is earnings predictability?
Earnings predictability refers to the extent to which a company's future earnings can be anticipated based on past performance and various influencing factors. High earnings predictability implies that a company's earnings are stable and consistent, making it easier for analysts and investors to forecast future earnings. Conversely, low earnings predictability indicates greater volatility and uncertainty, which can complicate valuation and investment decisions. Factors influencing earnings predictability include industry characteristics, company management, economic conditions, and accounting practices.
Can you debit asset and credit Retained earnings?
Assets are increased with a debit and decreased by a credit. Retained earnings is a credit, as they are an owners equity account and increase with credit.Retained earnings is what a company has after all expenses and dividends (if applicable) are paid. Retained earnings is shown on the Statement of Retained Earnings and is a credit which increases OE.
What is the simplest form of earnings management?
Perhaps the simplest way to manage earnings is to control the expense spigot. Even the most lean company can find discretionary expenses that can be trimmed to help meet the earnings target for a period.
What is the difference between accompany and company?
accompany-go with company- corporate organization, group of soldiers
