The various adjustments that are made to net income in arriving at net cash flow from operating activities. 10. The different tools of financial statement analysis, and how each tool is used, as well as the different names for certain tools of analysis. 11. The different ratios, why/how those ratios are used, and which external user is interested in a certain ratio.
d. Business entities will need far less assistance from accountants because the financial reporting process will be quite easy to apply. 26. In the conceptual framework for financial reporting, what provides "the why"--the goals and purposes of accounting? a. Measurement and recognition concepts such as assumptions, principles, and constraints b. Qualitative characteristics of accounting information c. Elements of financial statements d. Objectives of financial reporting 27.
d. Business entities will need far less assistance from accountants because the financial reporting process will be quite easy to apply. 26. In the conceptual framework for financial reporting, what provides "the why"--the goals and purposes of accounting? a. Measurement and recognition concepts such as assumptions, principles, and constraints b. Qualitative characteristics of accounting information c. Elements of financial statements d. Objectives of financial reporting 27.
These four basic financial statements are interrelated and consist of: income statement, retained earnings statement, balance sheet, and statement of cash flows. Accounting is an information system using three basics activities which are identify, record, and communicate economic events to interested users. Companies identify economic events relevant to its business. Financial activities are recorded systematically in a chronological order of events to provide history. Recording also will classify and summarize economic events.
Affinity cards are branded credit cards that carry both the logo of the banking institution as well as the logo of the sponsored organization. 6. Interest rates go up and down according to interest rates in the economy. 7. Credit card costs are determined by your income, debt levels, and repayment history. 8.
Although paper monies, such as certificates, stocks, currency, or bonds, are normally kept in financial institutions because of safety or convenience, the popularity to maintain possession of valuables is on the rise. The lack of hassle and ease of liquidity are two reasons for the rise. Standard of Deferred Payment - Money can be used to purchase goods and services, and pay at a later date or with a series of payments. For example, some furniture or electronic stores offer “buy now, pay later” specials as an incentive for purchasing. Federal Reserve and Monetary Policy The Federal Reserve is considered independent because, although it is accountable to Congress, its decisions do not have to be ratified by Congress or the President.
The Federal Reserve Bank and Recession Stephanie Armstrong ECO 203 George Murphy June 12, 2012 The Federal Reserve Bank The Federal Reserve Bank is the main source for all banks in the United States. The Federal Reserve Bank implements monetary policies that are necessary for the economy. In order to understand how the Federal Reserve Bank operates, you must understand the order in which it operates. Within the Federal Reserve Bank, there is a group, who is responsible for setting the monetary policy, and that group is the Federal Open Market committee. This committee plays a major role in the Federal Reserve Bank because the decisions they make are important to the functioning of the economy and monetary supply.
The Federal Open Market Committee is “the group that makes the key decisions affecting the cost and availability of money and credit in the economy” (“Board”). They congregate eight times throughout the year and discuss economic and financial conditions throughout the United States. They also discuss an action undertaken by a central bank known as monetary policy. Monetary policy is made up of three components: open market procedures, reserve necessities, and the discount rate. Open market operations are the United States Treasury’s and Federal agency securities’ purchases and sales.
One tax rate makes for easy computation by the Internal Revenue Service and straightforward payments from taxpayers (Meehan). Because the flat tax taxes only one income, it is easier to understand and to report. Taxpayers save the financial cost of complying with current IRS regulations, which often includes lawyers, accountants and other resources (Meehan). The flat tax remains a popular idea in part because it eliminates double taxation (Meehan). It removes the section of the tax code that is biased against the formation of capital (Meehan).
(0.5 points) A bank balance is the amount of money you have in a bank account. 3. Name at least two things to consider when choosing a bank. (1.0 points) Trust is one main key to choosing a bank, making sure they are well know and have been established for a well within your community. Protection risk is another, Making sure they have policies that deal directly which the risk of banking.