Ch 1 Financial Acc. Theory and Analysis

This four-credit course is for students who major in finance. By the end of this course,

Horizontal analysis allows side by side comparisons on a year to year basis to determine the performance from one year to the next. The company decides on standards to compare the results of the analysis. Standards are researched by checking competitors, internet research of general industry guidelines or standards created from past experience in the company.

3. In the auditor 's report the financial statements on which the opinion is being expressed

16. Which of the following organizations issues accounting standards for countries outside the United States?

Three positive observations that I made from the Mount Inn was the increase of the occupancy rate, rooms revenue, and beverage revenue. The occupancy rate jumped from 64.9 % in 2016 to 65.1% in 2017. This was a .20 increase in the rooms that were being occupied The hotel was able to get more customers into their doors. The rooms revenue jumped from $6,159,536 in 2016 to $6,414,875 in 2017.This was a $255,339 increase in revenue for rooms in the Inn. Another finding for the rooms revenue increased from being 70.77% to 71.72% out of the total revenue percentages. The last positive observation was the increase of the beverage revenue from $566,230 in 2016 to $637,400 in 2017. This was a $71,170 increase in revenue. The hotel is definitely growing revenue wise due to increase of customers coming into the hotel.

c) What will be the required return on equity (rE) after the change in capital structure from part b?

6. Governmental accounting and reporting with direct impact on entities ability to collect financial information accurately,

16. Which of the following federal officials is a "principal" of the Joint Financial Management Improvement Program who considers and approves or disapproves accounting and reporting standards recommended by the Federal Accounting Standards Advisory Board?

Commutronics had not accumulated enough profits and had no sufficient capital reserves. The company’s registered capital was therefore very low. The withholding tax rate of

B) I think the auditors should have equal responsibility for detecting material misstatements due to error and fraud. It’s their job to make sure the financial statements are as accurate as possible. Although it may be hard to check all the information from a company it’s the responsibility of the auditor to sign off that everything is in check.

Regulation is defined as a set of rules that is designed to control and govern conduct by authority (Deegan 2009, p.59). On the basis of this definition, Deegan (2009, p.59) has defined regulations relating to financial accounting as rules that are developed by independent authoritative body to govern the preparation of financial statements which are accounting standards. Since decades ago, there have been arguments for and against the existence of accounting regulations. With a stance of pro-regulation, this essay is going to examine the reasons that financial accounting and reporting should be regulated and the merits of accounting regulations.

Does the Board or audit committee understands and exercises oversight responsibility over financial reporting and internal control?

The preemptive right is clearly important to the stockholders of closely held firms whose owners are interested in maintaining their relative control positions.

Section “Management accounting basics” – Management accounting focuses mainly on the preparation of reports for the internal users of financial information, i.e. managers are all levels of the entity.

An important function of the accounting field is to provide external users of financial statements with assurance that the financial information being presented is both reliable and accurate. This basic function of accounting is so important that there is an entire field of experts, called auditors, dedicated to assuring its proper performance. Throughout history there have been many instances in which the basic equilibrium between an institution and current/potential investor has been threatened due to a lack of accountability and trust between the two parties. This issue has been the catalyst for many discussions regarding the proper procedures a firm should follow in order to provide