Recording also will classify and summarize economic events. The bookkeeping function is included in the recording of economic events. Accounting reports are then communicated to interested internal and external users by means of financial statements. Internal interested users are individuals inside the company who plan, organize and run the business. These users can be comprised of finance directors, marketing managers, human resources, or management.
Berry‟s Bug Blasters had a 25.52% Return on assets. This means they were able to receive $25.52 profit on every $100 in assets. Return on Common Stockholders‟ Equity: Determines corporate profitability. Investors can measure how Berry‟s is using the money they invested. To calculate ROE divide Net Profit after Taxes by Stockholder‟s Equity.
Corporate taxpayers may use capital losses against capital gains; however losses can be carried back. Individuals can use net capital losses to reduce ordinary income and against capital gains. 14-52 Sam Rogers forms a corporation. Sam transfers to the corporation property having a basis to him of $15,000 and a fair market value of $27,000 for 900 shares of the $10 par stock
1. What are the essential differences between endowments, final-salary definedbenefit (DB) pensions plans, and cash-balance (CB) pension plans? A Cash Balance plan is a defined benefit plan that specifies both the contribution to be counted to each participant and the investment earnings to be counted based on those contributions. Each participant has an account that resembles those in a 401(k) or profit sharing plan. They are based on two ways: 1) The company contribution – a percentage of pay or a flat dollar amount – determined by a specified formula 2) An annual interest credit.
Investors and creditors are examples of external users of accounting information. Investors make the decision to buy, sell, or hold stocks and creditors evaluate the risk of selling on credit or lending
These statistics include the “consumer price index (CPI), the employment report, and summaries of corporate and individual tax returns” (Anderson para. 2-7). “The United States
Investment Ratios These are concerned with assessing the returns and performance of shares in the business. Firstly I will calculate the profitability ratios: Profitability = the relationship between profit and the resources employed in earning it. PROFITABILITY RATIOS • Gross Profit Ratio • Net Profit ratio • Return on capital employed • Return on shareholders funds |GROSS PROFIT RATIO | |2008(£m) | |2007(£m) | | | | | | | | | Gross profit x 100 |= |402.5 x 100 | |376.1 x 100
Preliminary Expenses Copy rights Investments Discounts on issue of shares 38 # Which of the following statement is true under the Cost method for recognition of investments in associated companies? Any distribution of profits by the investee company is recorded as an income Any distribution of profits by the investee company is recorded as an expense Any distribution of profits by the investor company is recorded as an income Any distribution of profits by the investor company is recorded as an expense Please get ans http://studentoffortune.com/question/1595686/Fin-370-important-tutorial 39 # Which of the following is true with respect to the disclosure requirement of Investment in Associate? Explanations when investments are less than 20% are accounted for by the equity method or when investments of more than 20% are not accounted for by the equity method. Explanations when investments are less than 10% are accounted for by the equity method or when investments of more than 10% are not accounted for by the equity method. Explanations when investments are less than 10% are accounted for by the equity
The retained earning statement reports changes in the interest of the company and retained interest in profits or surplus. This statement typically contains profits and losses, dividends, and issuance of stock. This report is given to the board of directors for a company, issued during a press release, or during a quarterly report earnings statement. The balance sheet tracks the assets, liabilities, and stockholders equity. The assets on the sheet are company holdings.
This consists of four main categories: compensation, benefits, development and work environment (Kaplan, 2005). Compensation is an employee’s wages, including holiday and overtime pay and incentives such as bonuses (Duchon, 2007). Benefits include retirement plans, child care, and other specialty programs. Learning opportunities and training programs fall into employee development. And lastly programs that enhance an employee’s work environment, for instance job flexibility and employee recognitions (Kaplan,