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Financial Statements
A financial statement is a record of the financial activities of a person or business entity where all related financial information are presented in an orderly manner and can be easily understood.
5,583 Questions
What are the standards for comparisons in financial statement analysis?
● Intracompany-The company under analysis can provide standards for comparisons based on its own prior performance and relations between its financial items. Research In Motion's current net income, for instance, can be compared with its prior years' net income and in relation
to its revenues or total assets.
● Competitor-One or more direct competitors of the company being analyzed can provide standards for comparisons. Coca-Cola's profit margin, for instance, can be compared with PepsiCo's profit margin.
● Industry-Industry statistics can provide standards of comparisons. Such statistics are available
from services such as Dun & Bradstreet, Standard & Poor's, and Moody's.
● Guidelines (rules of thumb)-General standards of comparisons can develop from experience. Examples are the 2:1 level for the current ratio or 1:1 level for the acid-test ratio. Guidelines, or rules of thumb, must be carefully applied because context is crucial.
All of these comparison standards are useful when properly applied, yet measures taken from a selected competitor or group of competitors are often best. Intracompany and industry mea sures are also important. Guidelines or rules of thumb should be applied with care, and then only if they seem reasonable given past experience and industry norms.
What are the examples of people's job accomplishments?
getting a promotion, winning an award, getting a new top client
What effect did the railways have on the cost of transporting goods?
Natural waterways provided the chief means for transporting goods in the south.
Is a major expense a capital improvement?
Capital Improvement is not an expense. Expenses are associated with expenses.
Capital Improvements are increase in the assets. Example adding a new road.
this is a very good question and it is also dumb
How do you calculate net purchases when preparing a cost of goods worksheet?
solution in finding the purchases
Do you capitalise the Executive a noun referring to the executive arm of government?
The noun 'executive' (lower case e) is a common noun as a general word for the branch of a government responsible for putting policies or laws into effect.
Example: An executive committee will be convened to study the issue and advise the President.
The noun 'Executive' (capital E) is a proper noun for a specific branch of a government.
Example: The President met with the Executive chiefs before making the announcement.
What is the capital asset pricing model?
The CAPM is a model for pricing an individual security (asset) or a portfolio. For individual security perspective, we made use of the security market line (SML) and its relation to expected return and systematic risk (beta) to show how the market must price individual securities in relation to their security risk class. The SML enables us to calculate the reward-to-risk ratio for any security in relation to that of the overall market. Therefore, when the expected rate of return for any security is deflated by its beta coefficient, the reward-to-risk ratio for any individual security in the market is equal to the market reward-to-risk ratio
- The effects of transactions and other events are recognised when they occur (and not as cash or its equivalent is received or paid) and they are recorded in the accounting records and reported in the financial statements of the periods to which they relate.
ILLUSTRATION NO.1
Company A has received cash of $40,000 from his customers. However, the company actually has done all work satisfactorily and the customers have acknowledged the work done which the company can billed for another $20,000. Furthermore, the expenses for the $20,000 work-done has been taken up into the books of account.
Question: Should the company just close their accounting book by presently its income as $40,000 for the cash received or should it be $40,000+$20,000 =$60,000
Answer: Based on this concept, the company has actually completed all work done, also, the work done have being acknowledged by the customers, hence income of $60,000 should be taken up and not just the cash received.
ILLUSTRATION NO.2
Company A has billed customers for $100,000. Total supplier bills paid was $50,000 but there are some suppliers bills not paid amounting to another $15,000
Question: The company's income is undisputed by $100,000 but what should its book show for expenses-is it only $50,000 being invoices paid or is it all inclusive of the other $15,000
Answer: As the total supplier bills should be $50,000+$15,000=$65,000, the company should based on this concept to accrue for the balance of the bills not being paid.
Billable Revenue is monetary income that is promised to be paid (billed in arrears) without anything owed upfront at the time the agreement is made (typically by means of a signed contract). An example of this would be signing up for and receiving a service and being billed for it after the service is delivered. The term is often used by the billing-party and typically a salesperson. It is money that is expected to be received (from a sale) without actually being paid yet.
Cleanliness is next to Godliness is a popular slogan about cleanliness.
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How much operating expenses for a 100 foot yacht?
It would be dependant on usage but several 10s of thousands per year.
How do you calculate net price?
To calculate the net price of a given commodity, subtract the expresses from the gross prices. The new figure is will be the net price.
A government agent responsible for halting the unlawful distillation of bootlegged alcohol.
Why is the current ratio the most commonly used to measure of short term liquidity?
current ratio represents whether the entity is in a position to service its obligations towards current liability within its holding of current assets. The word current normally represents an year, within which not much changes regarding market sentiments and stability is expected. Hence the ratios is used to asses the liquidity.
What are the main changes that have taken place in business administration over the last few years?
One main change that has impacted business administration is the fact that it has become more strategic. Managers are aligning goals with their organization's mission and strategy.
Top 10 audit firms in Pakistan?
1-A.F. Ferguson & Co. (PwC)
2-KPMG Taseer Hadi & Co (KPMG)
3-Ernst & Young Ford Rhodes Sidat Hyder & Co (EY)
4-Anjum Asim Shahid Rahman (Grant Thoronton)
5-M. Yousuf Adil Saleem & Co (Deloitte)
6-Riaz Ahmad & Company (Nexia Intl)
7-Horwath Hussain Chaudhury & Co (Crowe Horwath)
8-Avais Hyder Liaquat Nauman
9-BDO Ebrahim & Co (BDO)
10-Muniff Ziaudin Junaidy and Co(BKR International)
How do you account for crates and returnable bottles?
Type your answer here.I would treat them as part of inventory. When the crates and bottles are with customers,the value should be posted to the creditors account and debited to the container account.
working with tally 7.2
internal Error
software Excepting c0000005 (memorey Access violatio ) face problem
What are row level and statement level triggers?
The FOR EACH ROW option determines whether the trigger is a row trigger or a statement trigger. If you specify FOR EACH ROW, then the trigger fires once for each row of the table that is affected by the triggering statement. The absence of the FOR EACH ROW option indicates that the trigger fires only once for each applicable statement, but not separately for each row affected by the statement.
