Introduction Accounting is essential to every business because companies can manage and analyse the success of the business. This paper will be discussing Accounting is the process of measuring, processing and communicating financial and non-financial information among internal and external parties of entities. By doing accounting, the business knows the value of its assets such as liabilities, revenues; costs, productivity of labour, expenses, and profitability of the business by doing these companies are able to perform a good tax planning. The main goal of accounting is to provide financial and economic control to the entity, economic information to suppliers, banks, investors, employees and their representatives, managers, lenders, community representatives, government and owners. Moreover, the author will be looking at the different types of organisations which are non-for-profit and for-profit profit organisations. A profit organisation is a company or other organisation which main goal is to make money (profit). Examples of for-profit organisations are retail stores and restaurants. A non-profit organisation is usually a tax-exempt because it provides valuable services to organisation for the community interest. The main objective is not being profitable, for example: religious, educational, charities, universities, institutions and hospitals. Although the organisation does not need pay income tax, they still produce accounting information because it is needed by users that may have an interest in the organisation and to observe that organisations wealth is being correctly used and controlled. Most of these organisations have tax exemptions status. Also the researcher will be doing a comparative analysis based on... ... middle of paper ... ...ts increased by 21.6% because there are 220 more employees than in 2012 to help improve the company’s administration and process of student support schemes. Along with the report, the SLC did a bad management in 2013 because they spent almost the same as they earned compared with the previous year, as seen in the figure 6 below. Afterwards it is plausible to from the balance sheet that the SLC had more assets in 2013 (£29,239) provided by the fixed assets (property, plant and equipment such as computer and electronic equipment) but their liabilities also went higher. In Relation to the SLC statements of changes in equity, the report shows that the values remain the same from 2012 to 2013 (figure 7). Although there had more investment in 2013 than in 2012 of £9,522 as shown in the figure 8 below, it had less cash flows at 31st March 2013 (figure 8).
From 2010 to 2011 there has been a 23.8% increase in gross fixed assets value. The raised funds through long term debts would have been used to enhance assets base of Speedster. This is a very positive sigh of future profitability and capacity of the company. Higher assets should be able to generate more cash inflow...
The return on equity for the company stood at 18.71% in 2009 as compared to 20.90% for the year 2008 which shows a declining trend. The investors are always keen to see high returns on their investments, but here the return on their equity is declining. It is a negative number for the company and if the trend continues the investors will lose the confidence in the company and will cease to invest in the company.
Gross Revenue – October’s consolidated gross revenue was $169k lower than budget, but still $724k over budget YTD. Within the Hospital, the largest over budget variances occurred in the Lab ($106k over budget in Oct., $453k YTD) and Radiology ($102k over, $554k YTD). The NLH Medical Group’s October gross revenue was essentially on budget, with positive variances in NLH and DHMC Orthopedics for a combined $107k over budget and General Surgery at $27k over budget. The Clough Center’s October gross revenue was $18k over budget.
Measuring the liquidity through the current ratio, with 2.74 in the year 2009,0.74 above the standard, with the decline in the following year meeting exactly the standard at 2% in the year 2010, and a steep decline in the year 2011-2012 as compared to its standard.Resulting in the decline in firm’s ability to meet its day-to-day operating expenses. The current liabilities from 2009 to 2012 have increased by 27.03 billion whereas the investments in current assets have increased just by 26.09 billion, which causes the decline in the current ratio. To cope up with this problem the company should invest more in current assets and should reduce its current liabilities.
For the current assets section, depreciation expense went up by 26.68% due to the purchases of new equipment worth $10,959million in 2014. The amortization expense also increased by 25.73% in 2014 compared to 18.89% in 2013.
To understand the basics of accounting a person needs to understand the steps involved. Each step is necessary in order to provide complete and accurate financial stat...
The nature of business has changed and evaluation. ‘New techniques have been developed and existing one has adapted to try to ensure that management accounting retains its relevance’ (Atrill, P. el at 2013, pg. 12). Then, what is management accounting? ‘The application of professional skills in the preparation and presentation of accounting information in such a way as to assist management in the formulation of policies and in the planning and control of the operations of the undertaking’ (Tyagi, C. el at 2003, pg.12). The management accounting is very significant thing in the operation which this might consider as tools that allows administrators to manage their enterprise, make internal stakeholder understand more and cooperate
Charity Company often involves favorable tax treatment and different reporting requirements. Unlike them, listed companies are subject to all the provision of company law and listing rules that apply, such as committee s...
The increase in cash and cash equivalents reflected strong cash flows from operations during the year, offset by contributions of $308.1 million to the Corporation's pension plans. Prepaid expenses and other current assets reflected higher prepaid pension expense associated with the funding of pension plans during the year and increased original margin balances for commodity futures. The elimination of current deferred income taxes resulted primarily from the significant liability related to the tax effect on other comprehensive income associated with the gains on commodity futures contracts during the year. Property, plant and equipment was lower than the prior year primarily due to depreciation expense of $155.4 million and the retirement of property, plant and equipment of $19.0 million, partially offset by capital additions of $132.7 million. The decrease in goodwill primarily reflected the impact of the sale of certain confectionery brands to Farley's & Sather's and foreign currency translation. The increase in other non-current assets primarily resulted from the pension plan funding during the
In reviewing the company’s balance sheet, the current assets and liabilities were reviewed and liquidity ratios were calculated. The capital structure and the fixed and intangible asset accounting of the company were also reviewed. Off-balance sheet items such as leases and contingent liabilities were reported and noted. All of these aspects of the balance sheet were reviewed in order to do a proper analysis of the company’s balance sheet.
: Common size percentage change is often interdependent. Even though the dollar amount for cash & cash equivalents increased in 2012 by 3.5% compared to 2011, the amount of total assets has been also increased by 11.7% compared to 2011 that is much more bigger percentage increase than the increase of cash & cash equivalents. So, the relative amount of cash & cash equivalents to total assets in 2011 (15.6%) was bigger than the relative percentage of those assets in 2012 (14.5%). From the chart, we can see that in 2011, the percentage of Long-term investments available-for-sale securities
The purpose of this document is to describe the nature, purpose and scope of accounting and it deliberately explains the details of each category in accounting. Accounting involves in preparing financial documents of an entity by analyzing, verifying, and reporting this records. It emphasizes its major characteristic role in field of banking and finance, with a mixture of supportive sub topics.
Accounting dates back as far as first centuries, is the language of business. As everything has gone through many changes, accounting has also changed many times through out the centuries. It went from the use of abacus to the most advanced softwares, and computers. With these drastic improvements nowadays accounting, financial accounting and management are facing big challenges. From the presentation of the reports to communication to the users, investors, and owners, the accounting field has gained totally a new shape from two decades ago. Today with the dynamic change in every aspect of life, the accounting field has to act fast and be able to adapt these new changes and challenges in order to survive.
The capital maintenance concept used results in differences between the relevance and faithful representation of the data that appears in the balance sheet and income statement. The difference between financial capital maintenance and physical is the treatment of unrealized holding gains and losses. Financial capital maintenance does not allow for unrealized holding gains and losses. Only realized gains and losses are included in income because they “are considered a return on capital” (Schroeder et al., 2013). This means, “income is measured only after the investment is recovered” (Gamble, 1981). Physical capital maintenance “consider[s unrealized holding gains and losses] as returns of capital and do[es] not include them income.” (Schroeder et al., 2013). Instead, they are treated as adjustments to equity and included in other comprehensive income. Therefore, with physical capital maintenance “an increase in an entity’s wealth as...
Accounting is a very important term to our modern society. It is the career for men and women who at the start have their eyes set on top positions in industry, management, government, and general business. Accounting is a basic need of every businessman, from the operator of a filling station to the government of the United States. It's so important to our society. None of the business organization can operate without is. They are there-somewhere-in every business. In small business, people use pen, ink and skill keep the records. In large business, modern accounting machines are used to operate. Men and women are directing these machines in the accounting process. Wise businessmen enter business must have some accounting knowledge.