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The balance sheet highlights the accounting equation which provides: Assets = Liabilities + Equity. In a balance sheet presentation, assets and liabilities are further classified into current and non-current to distinguish those used directly for operations as to those for long-term usage. An income statement is a formal statement prepared for a given period of time showing the performance of the enterprise. Performance is primarily measured in terms of the level of income earned by through the effective and efficient use of its resources. An income statement generally follows the equation: Net Sales/Revenue - Direct and Operating Expenses = Income. The Statement of Cash flow provide information about the historical changes in cash and cash equivalents which classifies cash flows during the period from operating, investing, and financing activities.
For the companies Ford Motor Company, Microsoft and ExxonMobil, the preparation of financial statements under the sound basis of accrual accounting would be more useful in the presentation of financial statements. The accrual basis renders a much reliable source of information about the financial position and performance...
Such information may be used to a much accurate and meaningful decision making of its users.
Based on the recent financial reports of these three leading companies in their category, there is of no showing that they are going to consider any cessation of business. All are stable and able to cope up with the changing market environment. A continuing slump on Ford Motor Company's income from discontinuing operations signifies that the operating segment is nearly complete in its shut down process. Microsoft's margin on assets may b attributed to the decrease of cash and cash equivalents due to a dividend payout during the period. However, such result does not gravely affect the stability of the continuing operations. Exxonmobil company seems to be in good operating condition having increased resources to be attributed to an increase in sales during the latest period.
Bibliography
Meigs and Meigs, Accounting, the basis for Business Decisions. (McGraw-Hill International Book Company) 1982
Skousen, Stice and Stice, Intermediate Accounting (Southwestern College Publishing) 2000.
Bibliography
Meigs and Meigs, Accounting, the basis for Business Decisions. (McGraw-Hill International Book Company) 1982
Skousen, Stice and Stice, Intermediate Accounting (Southwestern College Publishing) 2000.
Accounting GAPP, or "generally accepted accounting principles," has very specific meanings for the accounting profession. Like many other fields, these are best practice principles, and they both govern the standards of accountants and guide in licensing. They were designed so that there was a more even playing field, level of transparency, and trust in the accounting industry (see, for example, www.fasab.gov/accepted.html). While not always absolutes, these types of guidelines are a
GAAP Generally Accepted Accounting Principles in Health Care GAAP (generally accepted accounting principles) in health care Within the United States, all businesses that keep financial records must adhere to GAAP or generally accepted accounting principles, including both for-profit and not-for-profit healthcare entities. "GAAP is not a single accounting rule, but rather the aggregate of many rules on how to account for various transactions" (Kramer & Applebaum 2013). The first two principles of GAAP
However, net income has more extraordinary items included, which means that for Kraft cash flow from operations is the more accurate of the two. I predict that Unilever will continue along its steady growth path. The company has grown slowly but steadily in revenues in the past five years, averaging 2.2% growth in that span. Given the challenges in the economy, I also predict that Unilever will increase its debt
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MICROSOFT: No terrorist is going to try to blow up Microsoft; no oil products are needed to run computer hardware and software; computers run the world of commerce; and Bill Gates owns a huge percentage of all things computer software-related, so the Microsoft steamroller is a great investment and not as vulnerable to world conditions as are the first two companies reviewed in this section. One final conclusion: for EXXONMOBIL, albeit
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