Thursday, September 27, 2012

ACCT 2100 REVIEW

If you order your custom term paper from our custom writing service you will receive a perfectly written assignment on ACCT 2100 REVIEW. What we need from you is to provide us with your detailed paper instructions for our experienced writers to follow all of your specific writing requirements. Specify your order details, state the exact number of pages required and our custom writing professionals will deliver the best quality ACCT 2100 REVIEW paper right on time.

Out staff of freelance writers includes over 120 experts proficient in ACCT 2100 REVIEW, therefore you can rest assured that your assignment will be handled by only top rated specialists. Order your ACCT 2100 REVIEW paper at affordable prices with !



THE BIG PICTURE


Decision makers need information so they can make informed decisions. But whenever we make a decision, there is a risk that we will make a bad decision and face adverse consequences. The more good information we have, however, the better decisions we can make.


Irrespective of the Type of Business or the Forms of Business Ownership, accountants provide financial information to decision makers about the economic events of a company. Managers need this information to know how to run a company to achieve their financial objectives. Investors or creditors need this information to assess the risk and return on their investments.


We can view what companies do to create value for their investors and creditors in two ways


livepaperhelp.com



The transformation process


input (resources)àprocess(activities)àoutput(goods/services)àvalue(profits)


The business activities


FinancingàInvestingàOperatingàCreating value


To develop information about the transformation process or the business activities of a company, we need an accounting system.


Any accounting system, no matter how complex, has four basic steps


§ identify transactions,


§ record transactions, including adjustments


§ determine account balances


§ make reports.


So that this system produces reliable information, we have certain measurement rules for recording transactions and certain reporting rules for presenting the financial statements (GAAP). In addition, the financial statements of publicly traded companies undergo audits by CPAs to add credibility to the reporting process.


What to measure Financial Statement Elementsà


Assets, Liabilities, Owner’s Equity, Revenues, Expenses, Gains, Losses


When to measure accrual basis versus cash basis


Revenue recognition


Matching principle


How to record


How to report


Basic Financial Statements Financial Statement Elements


Income Statement Revenues-Expenses Gains-Losses


Statement of Owner’s Equity or Retained Earnings Statement Owners’ Equity


Balance Sheet Assets = Liabilities + Owners’ Equity


Cash Flow Statement Op Cash + Invest Cash + Fin Cash =∆ in Cash + Beginning Cash = Cash Bal


Now the investors can use financial statements�along with other financial information--to analyze the information to make decisions.


THE DETAILS


Types of transactions


Financing


Equity---sales of stock, payment of dividends, purchase of treasury stock


Debt�borrowing money, paying principal


Investing


PP&E


Investment in other companies


Operating


Purchases supplies, inventory, other goods and services including taxes, wages, interest, etc.


Sales of goods and services


Collection of receivables


Payment of Payables


End of period adjustments�bad debts, depreciation, interest, wages, etc.


Anything else that is not investing or financing


Detailed Format of Financial Statements


Any CompanyIncome StatementFor the year ended 1/1/01 Revenues- Expenses Net IncomeEPS (Publicly traded) Any CompanyIncome StatementFor the year ended 1/1/01 Revenues- ExpensesIncome before taxes Income taxes Net IncomeEPS (Publicly traded)





Any CompanyIncome StatementFor the year ended 1/1/01 Net Sales - Cost of Goods Sold = Gross Profit - Operating Expenses (S, G & A) = Income from Operations + Other Revenues and Gains - Other Expenses and Losses = Income before Taxes - Income Tax Expense = Net Income (Net Loss) EPS (Publicly traded)


Any CompanyIncome StatementFor the year ended 1/1/01 Net Sales - Cost of Goods Sold = Gross Profit - Operating Expenses (S, G & A) = Income from Operations + Other Revenues and Gains - Other Expenses and Losses = Income before Taxes - Income Tax Expense = Net Income (Net Loss) Income from Continuing Operations +/- Discontinues Operation (net of tax) = Income before Extraordinary and Cumulative Effect +/- Extraordinary Gains or Loss(net of tax) +/- Cumulative Effect of Accounting Change(net of tax) = Net Income EPS (publicly traded companies)


Basic EPS = NI - Preferred Dividends [even undeclared if cumulative]


Weighted Average of Common Shares Outstanding


Fully net income adjusted for the effects of exercise or conversion


Diluted (wt avg shares os + effect of all dilutive securities)


Any CompanyRetained Earnings StatementFor the year ended 1/1/01 Beginning Retained Earning+ Net Income- Dividends= Ending Retained Earnings





Any CompanyStatement of Stockholders’ EquityFor the year ended 1/1/01


Beg BalInvestmentPurchase TSNet IncomeDividendsOCI items 1 End Bal Common StockxyT (Treasury Stock)(x)(y)T Accumulated OCIX(z)z(z)T Retained Earningsxy(z)T





Any CompanyBalance Sheet1/1/01


AssetsCA Cash MES AR Inventory Supplies & Other PrepaidsTotal CANCA L-T Investments PP&E Intangibles OtherTotal NCA Total Assets Liabilities + Owners EquityCL AP NP, short term Accrued Payables Taxes InterestTotal CLL-T Liabilities NP, long-term Mortgage PayableTotal L- T LOwners Equity Contributed Capital Earned Capital OtherTotal OETotal Liabilities & OE





Any CompanyStatement of Cash FlowsFor the year ended 1/1/01 CASH FLOWS FROM OPERATIONS (direct or indirect) (detail) NET CASH PROVIDED/USED BY OPERATING ACTIVITIES _________ CASH FLOWS FROM INVESTING ACTIVITIES (details re inflows) (details re outflows) NET CASH PROVIDED/USED BY INVESTING ACTIVITIES _________ CASH FLOWS FROM FINANCING ACTIVITIES (details re inflows) (details re outflows) NET CASH PROVIDED/USED BY FINANCING ACTIVITIES _________ NET INCREASE/DECREASE IN CASH CASH AT BEGINNING OF THE YEAR _________ CASH AT END OF YEAR (= BALANCE SHEET)


Time value of Money


PV = what future cash flows are worth today. We are making decisions today and transacting business today. So we need to know $s today


Present Value of a Single Amount


Present value Future $’s


| | | /////// | | |


now


1 prd prd prd prd 10 prd


Present Value of an ordinary annuity


Present Value


. . . . . .


no $ $ $ $ $ $


r r1 r r r4 r5 r6


FV = what transactions and events grow to in the future. Used for planning.


future value of a single amount





today’s future value


$ | | | /////// | //// |


1 prd prd prd 5 prd 0 prd


now


future value of an ordinary annuity





0 $


today future value


. . . . . .





no $ $ $ $ $ $


r r1 r r r4 r5 r6


Debt Financing


Here are a few tips to rememberPrice of a bond equals the present value of all the future cash flows, both principal and interest.At issue, mkt rate face rate, bond is less desirable to the bond buyer. So the bond sells at a discount.For the borrower, discounts à increase interest expense to marketFor the creditor, discounts à increase interest income to marketAt issue, the mkt rate face rate, the bond is more desirable to the bond buyer. So the bond sells at a premium.For the borrower, premiums à decrease interest expense to marketFor the creditor, premiums à decrease interest income marketThe face rate the face amount controls the cash amount of interest paid.The market rate the carrying value controls the amount of interest expense.


Equity Financing


Authorized, issued, outstanding


Preferred vs Common


Par, stated value, no par


Dividends, Stock Dividends, Stock Splits


Analysis


Current Ratio


Market to Book Value


Return on Equity = Return on Assets x Financial Leverage


Higher Leverage means higher risk


Investing Activities


PP&E


Types


Cost


Depreciation


Valuation


Investments in other companies





Equity Securities�trading, available for sale, significant influence, control


Debt Secuirites-- trading, available for sale, held to maturity


Valuation


Analysis


Operating leverage


Asset Turnover


Profit Margin


Return on Assets


Effectiveness vs Efficiency


Operating


Revenues and Receivables


Revenue recognition


Returns and Discounts


Valuing--NRV


Inventory and Cost of Goods Sold


Matching principle


Merchandising vs Manufacturing


Measuring�FIFO, LIFO, Weighted Average


Valuing�LCM


Other operating expenses


Matching principle


Special Items�below the line


Anaylsis


Gross Profit


Operating Margin


Profit Margin


ROE


Inventory Turnover


Receivable Turnover


Cost Leadership


Product Differentiation


Miscellaneous Items





Limitations of financial statements


Limitations of financial statement analysis


Moral Hazard


Earnings Management


Internal Control


Minority Interest


Accumulated OCI


Deferred Compensation











Please note that this sample paper on ACCT 2100 REVIEW is for your review only. In order to eliminate any of the plagiarism issues, it is highly recommended that you do not use it for you own writing purposes. In case you experience difficulties with writing a well structured and accurately composed paper on ACCT 2100 REVIEW, we are here to assist you. Your cheap custom college paper on ACCT 2100 REVIEW will be written from scratch, so you do not have to worry about its originality.

Order your authentic assignment from and you will be amazed at how easy it is to complete a quality custom paper within the shortest time possible!



No comments:

Post a Comment