Financial Statements Essays

Generally Accepted Accounting Principles

The mutual set of accounting criteria used to develop medical centers financial statements are known as generally accepted accounting principles (GAAP). GAAP are a mixture of respected criteria created by Securities and Exchange Commission (SEC) and accountants. The SEC has authority granted by The Securities Act of 1933 and the Securities Exchange Act of 1934, to determine reporting and disclosure requirements. Oversight is the general functions of the SEC, granting the Governmental Accounting Standards Board (GASB) to determine the standards….

Read >>

Testing a Model of Islamic Corporate Financial Report

1. Introduction Religion can exert a profound influence on individuals and societies. There has been a growing religious commitment during the past two decades which has led to more Muslim countries seeking to manage their economies in line with the precepts of Islam (Hassan, 1998). Central issue in Islamic accounting is weather the external financial reporting system currently adopted by Muslim countries serves the needs of Muslims. Baydoun and Willett (1994 and 2000) who argued that the influence of Islam…

Read >>

Critically Assess the Uses and Limitations of Financial Statements

Critically assess the uses and limitations of financial statements The definition for a financial statement is a written report which quantitatively describes the financial health of a company. (www. investorwords. com) It consists of a balance sheet, income statements and a cash flow statement. This essay will critically asses the uses and limitations of each of these types of financial statements for a business. A balance sheet shows the financial condition of a business at a specific date (Langemeier &…

Read >>

Effect of the Sarbanes Oxley Act of 2002

The Sarbanes-Oxley Act of 2002 was designed to help prevent any fraudulent information being displayed on any company’s financial statement. The benefits of using falsified information would be that more people internally and externally will want to invest in the company. For example, a company financially is not doing well, but on paper shows that they are can sell their stocks for an increased amount from what it would be if they were not doing well. When this law was…

Read >>

Financial Performance Analysis

Financial statement analysis is the process of examining relationships among financial statement elements and making comparisons with relevant information. It is a tool in decision-making processes related to stocks, bonds, and other financial instruments. Analysis of financial statements provides valuable information for managerial decision. Financial analysis is commonly called analysis and interpretation offinancial statement. Analysis of financial statements means establishing relationship between the items in financial statements for determining the financial strength and weakness of business. It is the process…

Read >>

Financial Statement

The first issue to discuss is the four different types of financial statements and the use of each that a business will use. The second issue to discuss is what financial statements that an investor will review. The third issue to discuss is what financial statements a creditor will review. The fourth will be what financial statements that management within a company will review. The first financial statement is the income statement (Kimmel et al, 2009). The income states will…

Read >>

How the Profit Measured and Is It More Important Than Cash

In the work I reveal to the concept of profit, discuss how the profit measured, analyse cash flow and conclude is it more important than cash or not. Essay includes such key concepts as revenue, expenses, profit, loss, a profit and loss account, balance sheet. According to Meckin (2007) ‘the objective of financial management in the majority of businesses is to take business idea and turn it into profit’. And we also need to understand the importance of cash flow….

Read >>

According to the American Institute of Certified Public Accountants

According to the American Institute of Certified Public Accountants (AICPA) website, it was founded in 1887. Accountancy was established as a distinguished profession with thorough educational requirements, high standards and a strict code of ethics. According to the Financial Accounting Standard Board (FASB), private non-profit organization responsible for developing and interpreting the (GAAP) in the United States but it is not affiliated with US government. Two committees were created by the AICPA in 1971. The Wheat committee was in charge…

Read >>

The Major Purposes of Financial Statements

The major purpose of financial statement is to provide an overview of the company’s overall performance of the company’s operations and also assess the company’s worth during the year. Financial statement not only assists the financial managers but also the outsiders like creditors, stockholders etc. After reviewing the financial statements of the company all the stakeholders assess the company growth, investment opportunity ,dividend profile etc after that note all the stakeholders made appropriate decisions regarding the firm’s future’s perspective.. Financial…

Read >>