In which current and noncurrent asset categories are investments reported by Merck? What criteria are used to determine the classifications? The 2008 balance sheet reports the following two current and one noncurrent asset categories ($ in millions): 2009 2008 CURRENT ASSETS: Cash and cash equivalents $ 9,311.4 $ 4,368.3 Short-term investments $293.1 $1,118.1 NONCURRENT ASSETS: Investments $432.3 $6,491.3 In the summary of significant accounting policies (Note 2), Merck describes its policy regarding investments classified as "cash equivalents." It is consistent with the way most companies classify "cash equivalents." CASH AND CASH EQUIVALENTS -- Cash equivalents are comprised of certain highly liquid investments with original maturities of less than three months.
Normally, a reconciliation is required between the proprietary fund financial statements and the business-type activities column in the government-wide financial statements. C. Statements include the Statement of Net Assets (Balance Sheet); Statement of Revenues, Expenses and Changes in Fund Net Assets: and Statement of Cash Flows. D. The Statement of Cash Flows may be prepared using either the direct or indirect methods. 7. Which of the following choices regarding the fiduciary fund financial statements is true?
It includes options and warrants as well as debt and stock. "(2) Participation rights – contractual rights of security holders to receive dividends or returns from the security issuer’s profits, cash flows, or returns on investments. " "(3) Preferred Stock – a security that has preferential rights compare to capital stock. " (C) What information about securities must companies disclose? Discuss how Hincapie should report the proposed preferred stock issue.
Assignment 3: Banking (16.0 points) 1. Visit the website of a large national bank, regional bank, or credit union, and use the information you find there to answer the questions below. EXAMPLE: Some large banks you might consider include Bank of America®, JPMorgan Chase®, Wells Fargo®, Citibank®, and U.S. Bank®. a. What is the name of the bank or credit union?
Or Financial statements (balance sheet, income statement, statement of cash flows, and statement of stockholders’ equity) are the primary means accountants use to communicate financial information to investors, creditors, regulatory agencies, and others. Choose one of these financial statements and provide an example of the statement from your current organization, if possible. Provide a brief analysis of what is contained on the statement. The text identified three common legal forms of business organizations: sole proprietorships, partnerships, and corporations. IF you were to start or your business (or if you already have started your own business) what type of legal form would you use?
qualitative characteristics of accounting information. Recognition and measurement concepts in accounting, including assumptions and principles. elements of financial statements. : 1 5 of 5 Question 3. Question : (TCO 3) Mary Parker Co. invested $15,000 in ABC Corporation and received capital stock in exchange.
Learning Team Reflection Week 2 ACC/290 Learning Team Reflection Week 2 There are four basic financial statements that businesses use in conducting business: income statement, retained earnings statement, balance sheet, and statement of cash flows. Income statement pertains to revenues and expenses of a company. Retained earnings statement is a summary of the adjusted retained earnings that occurred for a specific time. “A balance sheet reports the assets, liabilities, and stockholders’ equity of a business at a specific date” (University of Phoenix, 2011, Week One Reading). Cash flows statement is a summary pertaining to cash flow and outflows in detail of specific transactions within time periods.
Problem Solution: McBride Financial Services Problem Solution: McBride Financial Services McBride Financial Services (MBFS), a regional mortgage lender with operations with headquarters located in Boise, Idaho, specializing “in conventional, FHA, and VA loans for home purchasing and refinancing” (UOPX, nd). With the involvement of a new investor, McBride will be forced to make some personal decisions and changes towards implementing corporate governance. Corporate governance “encompasses a wide range of checks and balances that affect the monitoring and incentives of firms’ management” (Kroszner, 2008). This author has the opportunity to describe the organizational background and structure of the McBride Financial Services scenario,
Federal Reserve banks took over the power to issue bank notes, and were granted the poser to buy and sell government securities, loan money to member banks, and to clear checks between banks. The Fed also also requires that member banks hold cash in reserve at a specified rate, currently 10% of their deposits (pg 205). The Fed’s customers are member banks, much in the same manner that depository institutions service the general public. The Fed also exercises powers to influence the
2. What are the primary ways in which commercial banks serve their customers? The primary ways are the creditor-debtor relationship, the agency relationship and the contractual relationship. 3. What is an overdraft?