Week 1 Discussion 1b

ASSIGNMENT: REVIEW QUESTIONS Direction: Answer comprehensively the following questions. 1. Explain the following statement, "While the statement of financial position can be thought of as a snapshot of a firm's financial position at a point in time, the income statement reports on operations over a period of time." 2. Financial statements are based on financial reporting standards and are audited by CPA firms. Do investors need to worry about the validity of those statements? Explain your answer. 3. How is income statement related to the statement of financial position? 4. Comment on why inflation may restrict the usefulness of the statement of financial position as normally presented.

Who will be a user of financial statements, and what will they be used for?   Question 17 options:     Lenders will use financial statements to decide whether to invest in a company.     Investors will use financial statements to decide whether to lend money to a company.     The marketing department is interested in the operating income figures in the financial statements.     Managers will use financial statements to make decisions about their company.

Terminal Activity "People Behind Financial Management" Career in Financial Management 1. 2. 3. 4. Having learned about the stakeholders in financial management, you may now complete the TABLE below by looking around you and finding out what are the different careers available to those who study and specialize in financial management. 5. Roles Responsibilities

Disclosure of the accounting estimates involved when preparing financial statements enables users of financial statements to better understand how the financial information is derived, and it enables comparisons between companies regarding the basis on which management makes decisions. Required: Reflecting on topics we discussed throughout the semester, provide three examples of how different accounting estimates or accounting policies impact the profit reported by the firm.

Mastery Problem: Financial Statement Analysis Question Content Area Liquidity and Solvency Measures Your friend, another accountant, has bet you that with your knowledge of accounting and just the computations for common analytical measures, you can figure out many aspects of a company's financial statements. You take the bet! Match each computation to one of the liquidity and solvency measures in the table. (Hint: Begin by looking for simple computations and identifying the amounts in those computations. Look for other measures that use those amounts.)

Financial accounting

How do you distinguish between Financial Reporting for GAAP, and full Disclosure. What is Management Discussion and Analysis. Access a public company annual report and analyze its MD&A section and how it helps the investors in their decision making process.

Financial Responsibilities: Describe the responsibilities of a financial analyst. Write five to seven bullet points outlining the responsibilities of a financial analyst. Write in complete sentences. Financial Management Decisions: Use an example to discuss the importance of analyzing and managing finances to help make business decisions. Consider the bullet points you outlined in the previous section. Then write a brief paragraph that answers the following questions. Use examples to support your claims. How do these responsibilities help inform management decisions? What would happen if management didn’t have this information? Accounting Principles: Explain how to use accounting principles to analyze a business’s financial health. Give examples to support your claims. Write a brief paragraph that explains how financial analysts use accounting principles to analyze a business’s financial health. In your paragraph, also answer the following questions: What accounting information…

Pls expound your answer

Question 1 If you are a financial analyst considering an investment in a Public Company (quoted in the stock markets), which of the following statement is correct? A) You will not have access to the annual financial statements B) You are an external user of accounting information You will be using managerial accounting 6.7 Points You are an internal user of accounting information

Choose the appropriate letter to match the term and the definition. match these Question 2 options:   Income Statement   Unit of Measure Assumption   Financing Activities   Retained Earnings   Investors   Operating Activities   Audit   Balance Sheet   1. An example of external users of financial statements. 2. A procedure by which independent evaluators assess the accounting procedures and financial reports of a company. 3. A financial statement showing a company's assets, liabilities and stockholders equity. 4. Activities directly related to running the business to earn profit. 5. The idea that a company should report its financial data in the relevant currency. 6. The cumulative total amount of profits that have been kept by the company. 7. Transactions with lenders (borrowing and repaying cash) and…

Identify the following statements and match it with the one of the qualitative characteristics of financial statement. Submitted Answers Prompts Choose a match The information provided to user to determine the company's growth or future potential Neutrality The financial Statements most be produced within a certain period that users can take advantage of information to make Predictive Value informative decision. Financial Statement is complete, neutral and free of material O Faithful represented statement, it means that it is.. Timeliness The information provided in the financial statement should not be biased to specific group of users.

Question 1 .Generally, the purpose of financial statements is to help investors and other users make informed financial decisions about the entity in which they have an interest or stakeholding. Financial statements provide the owners of the business with some means of assessing the proficiency with which their business is being run. These statements are therefore one way in which shareholders can assess or evaluate the directors’ performance in running the company. This is because financial statements report the impact management decisions have on the company’s financial position and cash flows for the year. However, with creative accounting being practiced by the corporate world, it seems published financial statements rarely serve the purpose for which they are prepared. Discuss. .“The goal of a firm is to maximize shareholder’s wealth” Evaluate and comment on this assertion in view of the Agency Theory in Financial Management. From a mature Zambian company’s perspective, examine…

Which of the following refers to financial accounting? Question 9 options: a) Regulations or standards govern the information provided to users. b) The focus is on using information from the formal accounting system to guide the organization's activities. c) Reports provided to users are timely and focus on the future. d) The users of the information provided include managers and executives within the organization. e) Users utilize both financial as well as nonfinancial information to make decisions.

Assignment Specifications Part A The corporate disclosure practice will help all the stakeholders to understand and measure business operation. Annual financial statement and particularly income statement is one of the most important ones. However, a company's reported profits will be impacted by different factors, including when particular transactions and events are recognised and how such transactions and events are measured. Requirement: 1) Using earning management concept, discuss why the timing of recognising events that impact income, revenue or profit or expenses are important for managers? "Maximum 1000 words." Part B ABC Ltd has incorporated a bonus plan that rewards the board of directors (executive members) by providing a bonus of 3 per cent of reported profits. This is an Accounting-based incentive that has the advantage which the accounting results may be based on subunit or divisional performance. "A well-informed labour market will motivate management to work to…

Mastery Problem: Financial Statement Analysis Liquidity and Solvency Measures Your friend, another accountant, has bet you that with your knowledge of accounting and just the computations for common analytical measures, you can figure out many aspects of a company's financial statements. You take the bet! Match each computation to one of the liquidity and solvency measures in the table. (Hint: Begin by looking for simple computations and identifying the amounts in those computations. Look for other measures that use those amounts.) Liquidity and Solvency Measures   Computations Working capital   $3,095,000 – $900,000  Current ratio   $3,095,000 ÷ $900,000  Quick ratio   $1,866,000 ÷ $900,000  Accounts receivable turnover   $8,280,000 ÷ [($714,000 + $740,000) ÷ 2]  Number  of days' sales in receivables   [($714,000 + $740,000) ÷ 2] ÷ ($8,280,000 ÷ 365)  Inventory turnover   $4,100,000 ÷ [($1,072,000 + $1,100,000) ÷ 2]  Number of days' sales in inventory…

Mastery Problem: Financial Statement Analysis Liquidity and Solvency Measures Your friend, another accountant, has bet you that with your knowledge of accounting and just the computations for common analytical measures, you can figure out many aspects of a company's financial statements. You take the bet! Match each computation to one of the liquidity and solvency measures in the table. (Hint: Begin by looking for simple computations and identifying the amounts in those computations. Look for other measures that use those amounts.) Liquidity and Solvency Measures   Computations Working capital   $3,095,000 – $860,000  Current ratio   $3,095,000 ÷ $860,000  Quick ratio   $1,866,000 ÷ $860,000  Accounts receivable turnover   $8,250,000 ÷ [($714,000 + $740,000) ÷ 2]  Number  of days' sales in receivables   [($714,000 + $740,000) ÷ 2] ÷ ($8,250,000 ÷ 365)  Inventory turnover   $4,100,000 ÷ [($1,072,000 + $1,100,000) ÷ 2]  Number of days' sales in inventory…

Discuss how the contents of your organisation’s annual financial statements can demonstrate business performance to external stakeholders for example lenders and investors.  Within your discussion you are required to explain FIVE different financial ratios which would be of relevance to these stakeholders

Which of the following options is most useful to the financial statement analyst? Select one: a. The shareholders of a Company. b. Common size financial statements and financial ratios. c. Human Resources Management of a Company. d. Public relations material and pro forma statements prepared by the firm.

Briefly explain the overall objective of a financial manager.  Include in your response any one of the three fundamental decisions a financial manager would be faced with.   You may want to refer to the fundamental accounting equation in your response.

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What does the Income Statement tell a financial statement analyst about how a business is performing? What are some of the key components of an Income Statement? Find a current annual report of a public company you would like to work for, and review the company's Income Statement. Let the class know what company you researched and how the business is doing from your review and analysis of the Income Statement.

Question 1 In analys rnings quality. Earnings quality refers to the reliability of the financial statements presented and whether it reflects the current business environment. Required: In 300 words, discuss the determinants of earnings quality