Acc 291 Week 4

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Team C Week 4 Summary David Ramirez, Kelvin Hemmingway, Chad Etzler ACC/291 August 26, 2013 Ins: James Covert Introduction As we advanced through week 4 of Principles of Accounting II, so far, we have absorbed ourselves with a litany of accountancy material. Week 4 continued with variety of content that contained: identifying kinds of shares issued by companies, computing shares, dividends, and stock splits, and documenting treasury stock deals. Also discussed in text and throughout discussion questions was the use of cash flows and types. We also covered both vertical and horizontal analysis. Cash Flow and Shares In any industry, have a clear picture of an organizations cash, and the flow of where it goes is an important part…show more content…
The majority of share divisions are mostly two for one split. This implies the stockholders get two stocks and shares for the price of one share. In case the share cost $10, the stockholder will get 2 $5 shares instead. Analysis and Investors The money statements is used by both external and internal users including investors, creditors, managers, and executives staff. There are several analysis that are used in many ways of Horizontal Analysis and Vertical Analysis. Horizontal Vertical compares in specific items over number of accounting period that many people uses to balance their information. There are compared in different ways of in Absolute Dollars and by percentage ratios that helps with calculations. Then the Vertical Analysis which compares each separate figure that shows in Financial statements. The explanation of the analysis through income statements and using the balance sheet The analyze information helps many businesses and owners to make good business decisions so understanding the analysis will be great importance to how people compares the analysis. If a firm issues and reacquires its own share from investors it is known as treasury stock. To document the buying of treasury stock the organization uses the cost technique. The debit would be documented in the treasury stock account for the price paid for the reacquisition. Having said that, if a firm disposes of treasury stock, they credit the treasury stock account for the
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