"The Importance of Financial Statements"
Importance of Financial Statement's information to Employees:
If Employees use Statement of Financials,they can assess the company's profitability and its consequences on their future remuneration & job security. By this assessment employees can also support in growth of the company.
GAAP: Generally Accepted Accounting Principles refer to a common set of accounting principles, standards & procedures. Globally Financial Accounting Standard Board (FASB) generally issue these standards, principles & procedures. As these are set by Policy Boards so it becomes a kind of authoritative standards. The basic objective of issuance of GAAP is to improve clarity comparability, consistency and communication of financial information. These standards ease interpretation of financial information to its users like investors, financial institutions, banks, government and general public.
Although it is recommended to public companies but it is advisable to be used by private companies, also. As they can reap benefits of improved clarity comparability, consistency and communication of financial information. The use of this will help in case of borrowings from financial institutions or banks and also improve confidence of users of financial statements.
"The Importance of Financial Statements" Public companies are required to publish annual financial statements. Suggest the...
Question 8 (1 point) Which of the following rules apply to the financial statements of public companies in the United States? [SELECT ALL THAT APPLY) Must produce a balance sheet, income statement, statement of cash flows, and statement of stockholders' equity Must be produced according to GAAP, the Generally Accepted Accounting Principles Must be reviewed by an independent auditor
Question 14 (0.2 points) Which of the following rules apply to the financial statements of public companies in the United States? [SELECT ALL THAT APPLY] Must produce a balance sheet, income statement, statement of cash flows, and statement of stockholders' equity Must be produced according to GAAP, the Generally Accepted Accounting Principles Must be reviewed by an independent auditor
Write a 700- to 1,050-word paper that analyzes the differences between generally accepted accounting principles for public and private colleges and universities. Explain why it is important to identify whether the institution is public or Private. Clarify which of the two-public or private-follow the same reporting guidelines as nongovernmental not-for-profit organizations. Analyze, in general terms, the financial statements that must be prepared by a private college or university and those that must be prepared by a public college or university...
Write a 700- to 1,050-word paper that analyzes the differences between generally accepted accounting principles for public and private colleges and universities. Explain why it is important to identify whether the institution is Public or Private. Clarify which of the two—public or private—follow the same reporting guidelines as nongovernmental not-for-profit organizations. Analyze, in general terms, the financial statements that must be prepared by a private college or university and those that must be prepared by a public college or university....
2. What financial statements and the ratios associated with them are of particular importance to the creditors of the firm and why? 3. What measurements of both risk and return (the important concerns of management) can be found in the financial statements and what ratio's provide that information? 4, Does GAAP provide only one means to provide financial information to the readers of the financial statements or are there several that are allowed based on the financial status of the...
TB MC Qu. 01-47 The financial statements of... The financial statements of a United States public company are most likely to follow. Multiple Choice rences Ο O Generally accepted accounting principles Ο International Standards of Auditing Ο Public Company Accounting Oversight Board Principles Ο Quality control standards Prev 1 of 36 !!! Next >
Take me to the textIndicate whether the following statements describe financial accounting or managerial accounting.Largely based on forecasting future sales and cash flows, calculating costs and preparing budgets.is concerned with collecting data of historical nature.Reports are very detailed and provide a wealth of information.Must follow Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS) set by professional bodies.Primarily prepared for external users such as creditors and stockholders so that they can make sound financial or investment decisions.Does not...
List the 3 financial statements used in financial accounting. Discuss the importance of these financial statements. Why do we use these? Who are the users of this information? Discuss how a healthcare manager might use each one. In your opinion, do you feel that one is more important than another? Why or why not? What would happen if we didn't have these types of tools?
1. What information should an investor be able to find within the financial statements and why is is important that they be reviewed by a third party? 2. Firms speak of the use of Generally Accepted Accounting Principles (GAAP). Why is this approach important and who assures that it is followed? (There are several parties involved) 3. What is accrual accounting and how does it differ from cash based accounting? 4. What information does the balance sheet contain as compared...
Patel, CPA, has completed the audit of the financial statements of Bellamy Corporation as of and for the year ended December 31, 2016. Patel also audited and reported on the Bellamy financial statements for the prior year. Patel drafted the following report for 2016: We have audited the balance sheet and statements of income and retained earnings of Bellamy Corporation as of December 31, 2016. We conducted our audit in accordance with generally accepted accounting standards. Those standards require that...