Balance sheet

I will be looking at the Tesco Plc Annual Report and Financial Statements 2014 in this week’s learning journal since it is the company I chose in my week 1. Before I delve into discussing whether I think they use accrual-based account or cash-based accounting I will like to define the terms. Accrual basis accounting simply means the process of recording revenue and expenses as they take place even though there has not been an exchange of cash, while, cash basis accounting as the name typifies is…

affected a company’s earnings. As a result, many companies used the maximum 40 years to minimize the effects of the amortization expenses on the income statements. What is more, management could intentionally inflate the goodwill value in the balance sheet by only taking a few depreciation expenses for each period. Issues arising from the old goodwill treatment could have an adverse effect on shareholders' value, especially those acquisitions driven by managerial ego or other reasons. As a…

company. Balance Sheet Consolidated balance sheet of J.C. Penney presents the assets and liabilities of the company in a single document. It’s current assets include cash in bank, cash short-term investment, and etc. Non-current assets include property and equipment. It’s total current assets is $4097 in 2016 and non current assets is $5217. Their liability includes portion of capital lease and long term debt and result total of $7960. According to the footnote from the balance sheet, J.C.…

The career I am researching is that of a financial examiner. Basically, a financial examiner goes over balance sheets and other financial statements to ensure that all laws governing financial institutions and transactions are being followed. They also asses the level of risk versus reward in loans, as well as the management of banks(Bureau of Labor Statistics). I chose this career because it is in the field of finance, which is just about the only major I know I want to pursue. Financial…

flow of cash in and cash out of the nonprofit organization and captures the current operating results as well as the accompanying changes in the balance sheet (Matan & Hartnett, 2012). In the statement of cash flows, the three sections of the statement—investing activities, financing activities, and operating activities—presents the changes in the balance sheet accounts and income affecting the cash and cash equivalents (Matan & Hartnett, 2013). • Investing activities: the section addresses…

24 Borrowed $2,500 from BestBanc by securing a six-month loan. Cash $2,500 Notes payable $2,500 Borrowed $2,500 from BestBanc,6 months Prepare journal entries (and explanations) to record the preceding transactions and events. 3. Balance sheet preparation. The following data relate to Preston Company as of December 31, 20XX: Building $40,000 Accounts receivable $24,000 Cash 21,000 Loan payable 30,000 J. Preston, Capital 65,000 Land…

inventory warehouse, the actual amount of returns is unpredictable. Therefore, the $15000 should be listed as a returns allowance, which would be a subtraction from the accounts receivable balance. The balance sheet affect of this change is shown below in Figure 6. Another fact to point out in this balance sheet is the inventory…

Describe the three products of accounting and bookkeeping procedures that are b. Three important financial statements are used in accounting. They are the income statement, the cash flow statement, and the balance sheet (Siegel & Yacht, 2009, p. 42). Each financial statement has its advantages and disadvantages. Each one is unique and presents different features, however, they are all useful in financial planning, and they build on each other. Each one presents…

Statement of retained earnings- Reflects the changes in earning of a company within a given period. The statement of retained income is generally two balance sheets reflecting the addition of net income and the deduction of dividends. Balance sheet- Provides insight into the companies’ ability to pay debts and its financial position. The sheet lists the asset, liabilities and equity at the close of business on a specific…

misstate the final account balance, auditors must be diligent to prevent fraud or human error. A misstatement in inventory can have two effects: increase the value of the account and thus the company; and, increase cost of goods sold and thus increase revenue. One of the most important jobs for an auditor is to inspect the physical inventory itself. This tests two key assertions: existence and accuracy. The auditor must confirm that the inventory in the final account balance actually exists and…