Financial Accounting: Essay example

997 Words 5 Pages
CRAM Exclusive
Essay Sample
Introduction Financial accounting that is about reporting and summarizing the transactions of business and provide an accurate financial reports or financial statements such comprehensive income and finacial position (Averkamp, 2014). However, if investing in a business and want to acquire more profit, the financial statemnet of company is must be analysed before taking a decision. This essay will explains that financial statements between two companies about four years comprehensive income

middle of document…

Similarities



On the other hand, there are some similar statements between comprehensive income and financial position. For example, they are need prapare a comprehensive income for the end of years. In the process of financial record, revenue, cost of sales and gross profit are must be caculate both of them. It is illustrates the income situation of company. The usual expenses are calculated such as salaries, rent and rates, insurance. Whole of table of comprehensive income and financial position have same step in calculate the profit for the period. Thus, income statement is part of statement of financial position.



Difference



Generally, analyse the differences of the statement of comprehensive income and the statement of financial position is necessary. The purpose of the statement of comprehensive income is illustrate that entity's financial performance (profitability) in the accounting period (usually for one year), no matter when cash is received or paid. It is depend on accrual accounting and the formula is profit or loss for the period equal to income minus expenses. Hence, when we wan to invest one company this calculation method is clear shows the income situation of the company and unrealized profit or loss. But the statement of financial position has different purpose that is sum up the total assets, equity and liabilities on the last day during the period of times, and the statement of
CRAM Exclusive
Water81395Dragon

Related Documents

  • Essay about Financial Accounting

    CHAPTER 1 Financial Accounting and Accounting Standards 1-1 ASSIGNMENT CHARACTERISTICS TABLE Level of Difficulty Simple Simple Simple Simple Moderate Simple Simple Simple Simple Complex Simple Moderate Simple Simple Complex Moderate Moderate Moderate Moderate Moderate Time (minutes) 15–20 15–20 15–20 15–20 20–25 10–15 15–20 20–25 20–25 30–40 15–20 30–40 15–20 10–15 20–25 30–40 25–35 25–35 25–35 25–35 Item CA1-1 CA1-2 CA1-3 CA1-4 CA1-5 CA1-6 CA1-7 CA1-8 CA1-9 CA1-10 CA1-11 CA1-12 CA1-13

    Words: 12633 - Pages: 51
  • Financial Accounting Essay

    FFA PAPER F3 FINANCIAL ACCOUNTING BPP Learning Media is the sole ACCA Platinum Approved Learning Partner – content for FIA and ACCA qualifications. In this, the only FFA/F3 study text to be reviewed by the examiner:        We highlight the most important elements in the syllabus and the key skills you will need We signpost how each chapter links to the syllabus and the study guide We provide lots of exam focus points demonstrating what the examiner will want you to do We emphasise key

    Words: 166747 - Pages: 668
  • Financial Accounting Essay

    Lines] ACCT 573 Accounting Quality Assignment # 2 April 23rd, 2016 Introduction The purpose of this research assignment is to analyze accounting quality in regards to the requirements set forth by the Sarbanes-Oxley Act of 2002 and SEC reporting requirements for publically traded corporations. Specifically, this paper analyzes the roles of the Board of Directors (BOD) and CEO’s regarding the establishment of an ethical workplace environment, which generates quality accounting information to

    Words: 1310 - Pages: 6
  • Financial Accounting Essay

    REPORT ON BUSINESS CONSEQUENCES OF NATURAL DISASTERS FOR THE BOARD OF DIRECTORS OF MILLEY LTD Bachelor of Professional Accounting Macquarie University Sydney, Australia 2011 Submitted to the Faculty of Busines and Economics of Macquarie University in partial fulfilment of the requirement for ACCG 224 April, 2011 Word Count = 1484 Table of Contents CONTENTS

    Words: 2557 - Pages: 11
  • Financial Accounting Essay

    important to maintain bookkeeping records and the users of such record Bookkeeping is the recording of financial transactions which includes receipts, payments, receipts and sales by an individual or organization. Bookkeeping and accounting are two different things because the accounting process includes the bookkeeping function, an accountant a person who is responsible for recording financial transactions recorded by the bookkeeper and files forms with government agencies. Bookkeeping has some

    Words: 799 - Pages: 4
  • Financial Accounting Essay

    Financial Accounting Standards Board ORIGINAL PRONOUNCEMENTS AS AMENDED Statement of Financial Accounting Standards No. 157 Fair Value Measurements Copyright © 2010 by Financial Accounting Foundation. All rights reserved. Content copyrighted by Financial Accounting Foundation may not be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the Financial

    Words: 59312 - Pages: 238
  • Financial Accounting Essay

    sales TL1,100,000 Accounts receivable at December 31 369,000 Bad debts written off 22,150 Instructions (a) What amount of bad debts expense will Izmir Company report if it uses the direct write-off method of accounting for bad debts? (b) Assume that Izmir Company decides to estimate its bad debts expense based on 6% of accounts receivable. What amount of bad debts expense will Izmir record if Allowance for Doubtful Accounts has a credit balance of TL4,000? (c)

    Words: 2038 - Pages: 9
  • Legality & Ethicality of Financial Accounting Essay

    Legality and Ethicality of Financial Reporting Accounting professionals consider standard practices of accounting and board of accountancy rules when creating ethical standards. Accountants also consider state and federal laws. Ethics and the law works hand-in-hand therefore should be on the minds of those considering the commission of fraud. The Chief Financial Officer (CFO) of Excello, Terry Reed, was considering doing such by posting a $2.1 million transaction to raise year-end earnings.

    Words: 931 - Pages: 4
  • Measurement Principles in Financial Accounting Essay

    | Measurement Principles in Financial Accounting | A case study on the problems with Fair Value Accounting | | Kurt Vonderheide | 12/8/2009 | Abstract | | The use of historical accounting provides simplified but verifiable information to users of accounting statements. One argument to historical values is that they do not provide true values. This had led to a push to use fair value accounting methods for financial statements. While fair values methods may more accurately

    Words: 1478 - Pages: 6
  • Financial Accounting Theory Essay

    Financial Accounting Theory Introduction The aim of this paper is to consider three theories of regulation, the public interest theory, the capture theory and the economic interest theory. These three theories attempt to explain why a particular phenomena in the regulation process occurs and as such they are positive theories. Initially, in part (a) the theories are explained and then related to a case where the European Union Commission defers accounting standards.

    Words: 2749 - Pages: 11