StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Discussion 1: Formall Financial Statement and Disscussion 2: Standaard Classifications - Essay Example

Cite this document
Summary
Formal Financial Statements The financial statements are the most important financial reports that are prepared for users of financial information. The four basic accounting statements are the income statement, the balance sheet, the statement of retained earnings and the statement of cash flow…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.2% of users find it useful
Discussion 1: Formall Financial Statement and Disscussion 2: Standaard Classifications
Read Text Preview

Extract of sample "Discussion 1: Formall Financial Statement and Disscussion 2: Standaard Classifications"

Formal Financial ments The financial ments are the most important financial reports that are prepared for users of financial information. The four basic accounting statements are the income statement, the balance sheet, the statement of retained earnings and the statement of cash flow. The balance sheet is considered a statement of position because the information reflected in the statement is the actual account balances at that specific point in time. The main components of the balance sheet are assets, liabilities, and equity.

The balance sheet follows the logic of the basic accounting equation. The basic accounting equation states that assets = liabilities + stockholder’s equity (Moneyinstructor, 2011). The income statement provides information regarding an accounting period. The basic accounting period is one year. The income statement reflects the profitability of the company. Its two basic components are revenues and expenses. The statement of cash flow is composed of three sections: investment activities, operating activities, and financing activities.

Standard Classification The balance sheet is a very important financial statement because it provides information regarding the financial position of a company at a specific point in time. The classified balance sheet is prepared in order to provide greater usefulness to the arrangement of the accounts. The accounts that are included in the classified balance sheet are 1) current, 2) long-term investments, 3) property, plant and equipment, 4) intangible assets, 5) other assets. The liabilities segment is typically classified as 1) current, or 2) long-term or noncurrent.

This classification system is very useful since it arranges information in a manner that the users of financial information can retrieve data to analyze the firm. For example ratio analysis utilizes the data from the classified balance sheet to calculate different ratio metrics such as the debt ratio and the current ratio. I do not think that the classified balance sheet requires any additional accounts to be included. References Moneyinstructor.com (2005). Introduction to Transaction Analysis: The Basic Accounting Equation.

Retrieved April 14, 2011 from http://www.moneyinstructor.com/lesson/accountingtransaction.asp

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Discussion 1: Formall Financial Statement and Disscussion 2: Standaard Essay”, n.d.)
Retrieved from https://studentshare.org/other/1416597-discussion
(Discussion 1: Formall Financial Statement and Disscussion 2: Standaard Essay)
https://studentshare.org/other/1416597-discussion.
“Discussion 1: Formall Financial Statement and Disscussion 2: Standaard Essay”, n.d. https://studentshare.org/other/1416597-discussion.
  • Cited: 0 times

CHECK THESE SAMPLES OF Discussion 1: Formall Financial Statement and Disscussion 2: Standaard Classifications

Week 2 /Discussion Question 2

Both the pacifists' methods and those of the more radical elements immensely contributed to change that was realized by the civil rights movement of Week 2 /discussion Question 2 During the civil rights movement of the 1960's, the methods used by the pacifists clashed with the more radical elements....
1 Pages (250 words) Personal Statement

Week 3 discussion question 1 and 2

After the oil embargo of 1973-74, the american middle class started to see themselves oppressed and burdened by tax laws.... This was a radical change from the postwar america, when those in the middle class saw themselves as among properous in the world.... How did the embargo… The reason that the oil embargo caused this kind of effect on the American confidence was because gasoline was being rationed, in some states Christmas was being cancelled, and some gas stations were refusing the sell gasoline 1....
1 Pages (250 words) Personal Statement

Compensation and Benefits Peer Discussion

This paper is being written with a view point to provide details regarding the discussion of the concepts that I found most interesting in chapter 12.... Besides that I will explain these… In the end I will describe that how these concepts are used by an HRM in any organization. To take part in the peer discussion, I would start by telling the most interesting points in chapter 12.... I found these points truly Compensation and Benefits Peer discussion Teacher's Institute This paper is being written with a view point to provide details regarding the discussion of the concepts that I found most interesting in chapter 12....
1 Pages (250 words) Personal Statement

Week 5 discussion Questions #1 & #2

We must not support and supply countries that oppress their people with financial aid and arms that can be 1.... We must not support and supply countries that oppress their people with financial aid and arms that can be used to harm them.... As a government, he United States has always frowned upon any nation that represses the rights of its people and hands over the authority to govern a nation to only one person, a shared government leadership, or a military junta....
1 Pages (250 words) Personal Statement

Discussion Questions #1 and #2

This is because they are based on methodologies and procedures that ultimately conduce to the accuracy of the discussion Questions And #2 and number) submitted) Benefits of using scientific method to analyze environmental decisionsThe scientific method adopts the use of factual and tested processes of ensuring that environmental decisions are made....
1 Pages (250 words) Personal Statement

Week 4 discussion TQM

The function of formal group is very critical in attaining quality and productivity within the workplace (Mukherjee, Week 4 discussion TQM Any enterprise that pursues to embark upon TQM program should change its paradigm from convention one based on cascading of authority to an inverted pyramid, in which the management views its employees as the critical factor in attaining excellence....
1 Pages (250 words) Personal Statement

Accounting Accuracy and Financial Literacy

The accrual system of accounting record revenue when it is earned hence shows the actual financial position of a business periodically.... Corporation Accounting Accuracy and financial Literacy Accounting Adjustments Both cash and accrual systems have their advantages and disadvantages.... The accrual system of accounting record revenue when it is earned hence shows the actual financial position of a business periodically.... Accounting process involves journal entries, trial balance, financial statements, and closing books....
1 Pages (250 words) Personal Statement

Discussion of Sensitive or Potentially Controversial Issues

The writer of the paper “discussion of Sensitive or Potentially Controversial Issues” states that there is an unwritten rule that there are three subjects you never discuss if you want peace: abortion, religion, and the death penalty.... One of the most important ways to help is to first create a vocabulary that is not offensive to either side of the discussion....
11 Pages (2750 words) Personal Statement
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us