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Finance and Accounting for ABC Complete Kitchen Inc. Essay example

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We have already discussed the new plants organizations ethical and social obligations for the corporation on a global aspect, and the international management. Next our attention will be drawn to the finance and accounting for the plant (CFO). Organizations use financial statements to show how well they are performing in the market, and to convey with its stockholders and backers. In this memo, we will be examining key information in the new strategic financial project illustrate the several types of financial and accounting key functions.
Financial Statements
It is mandatory for ABC Complete Kitchen Inc. to file their financial statements with the United States Securities and Exchange Commission (SEC). Financial Statements are…show more content…
The assets show the type of resource that the organization use; the other side shows the type of resources, and how much money it needs to take care of expenses. In Figure 1, it shows an example of a balance sheet for ABC. Assets
On some balance sheets assets are split into current and long-term assets as seen in Figure 1. Current assets are asset that are readily liquidated for money within a year, for example: cash, money markets, accounts receivable, inventory, and other current (Edition, 2011). Other current assets group is for prepaid expenses. Under long-term asset is land, plant, building, which refers to real estate machinery. For equipment that possibly has wear and tear or become out of date, is less depreciation. “The book value of an asset is equal to its acquisition cost less accumulated depreciation. Net property, plant, and equipment shows the book value of these assets” (Edition, 2011, p. 750). If you notice in Figure 1, goodwill and intangible asset are part of long-term assets.
The last two entries recorded as part of long-term asset are other long-term assets and amortization. Other long-term assets are intangible assets that the company obtained through an acquisition such as “brand names, trademarks, patents, customer relationships, and employee” (Edition, 2011, p. 750). As a replacement for depreciation, when the value of the assets decline over time, it is recorded as an amortization or as impaired charges
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