After reading this chapter, you should be able to answer the following questions: What is included in the cash amount reported on the balance sheet? What are the features of an internal control system, and why are internal controls important? What is the bank reconciliation procedure?...
After completing this unit, you should be able to: Describe how the cost of land, buildings and equipment is reported on the balance sheet; explain the differences between the terms capitalise and expense with respect to property, plant and equipment; discuss the alternative methods of calculating depreciation and the relative affect of each on the income statement (depreciation expense) and the Balance Sheet (accumulated depreciation);...
Chapter 1 stressed the importance of financial statements in helping investors and creditors predict future cash flows. The balance sheet, along with accompanying disclosures, provides relevant information useful in helping investors and creditors not only to predict future cash flows, but also to make the related assessments of liquidity and long-term solvency. The purpose of this chapter is to provide an overview of the balance sheet and financial disclosures and to explore how this information is used by decision makers.
The current liabilities section of the balance sheet contains obligations that are due to be satisfied in
the near term, and includes amounts relating to accounts payable, salaries, utilities, taxes, short-term
loans, and so forth. This casual description is inadequate for all situations, so accountants have
developed a very specific definition to deal with more issues.
Describe the purpose of the balance sheet and understand its usefulness and limitations.
The Balance Sheet
The purpose of the balance sheet is to report a company’s financial position on a particular date.
Limitations: The balance sheet does not portray the market value of the entity as a going concern nor its liquidation value. p Resources such as employee skills and reputation are not recorded in the balance sheet.
Usefulness: p The balance sheet describes many of the resources a company has available for generating future cash flows.
Extensible Markup Language, or XML, is currently the most promising language
for storing and exchanging information on the World Wide Web.
Although Hypertext Markup Language (HTML) is presently the most common
language used to create Web pages, HTML has a limited capacity for storing
information. In contrast, because XML allows you to create your own elements,
attributes, and document structure, you can use it to describe virtually any kind
of information—from a simple recipe to a complex database.
Updated to teach the most current XML standards, this book uses real-world case studies and a practical, step-by-step approach to teach XML. It provides extensive coverage of DTDs, namespaces, schemas, Cascading Style Sheets, XSLT, XPath, and programming with the WSC document object model.
The purpose of this book, entitled Face Analysis, Modeling and Recognition Systems is to provide a concise and comprehensive coverage of artificial face recognition domain across four major areas of interest: biometrics, robotics, image databases and cognitive models. Our book aims to provide the reader with current state-of-the-art in these domains. The book is composed of 12 chapters which are grouped in four sections.
The current structure of the chapters reflects the key aspects discussed in the papers but the papers themselves contain more additional interesting information: examples of a practical application and results obtained for existing networks as well as results of experiments confirming efficacy of a synergistic analysis of anomaly detection and signature detection, and application of interesting solutions, such as an analysis of the anomalies of user behaviors and many others.
This is a book for businesspeople. All decisions in a business organization
are made in accordance with how they will affect the
organization’s financial performance and future financial health.
Whether your background is marketing, manufacturing, distribution,
research and development, or the current technologies, you
need financial knowledge and skills if you are to really understand
your company’s decision-making, financial, and overall
The goal of this book is to introduce the visional application by excellent researchers in the world currently and offer the knowledge that can also be applied to another field widely. This book collects the main studies about machine vision currently in the world, and has a powerful persuasion in the applications employed in the machine vision.
Restricted cash is cash that has been set aside for a particular use and is not available for paying current liabilities. Restricted cash is not a current asset, rather it is classified as an investment on the balance sheet.
A compensating balance is some specified minimum amount that must be maintained on deposit with a bank that has made a loan to the company.
Chapter 5 - Understanding balance sheets. This chapter describe the elements of the balance sheet: assets, liabilities, and equity; describe uses and limitations of the balance sheet in financial analysis; describe alternative formats of balance sheet presentation; distinguish between current and noncurrent assets, and current and noncurrent liabilities;…
The definition of an insurance contract distinguishes insurance contracts that are
subject to IFRS 4 from those contracts that are subject to IAS 39. Some contracts,
however, contain both an insurance component and a deposit component.
The deposit component of an insurance contract is defined as a contractual
component that is not accounted for as a financial instrument under IAS 39,
but that would be within the scope of IAS 39 if it were a separate instrument.
Prevention of mother-to-child transmission of HIV (PMTCT)
is a dynamic and rapidly changing field. Current World Health
Organization (WHO) PMTCT antiretroviral (ARV) guidelines on
treating pregnant women and preventing infection in infants
(1), issued in 2010, were a major step towards more efficacious
Chapter 9 - Reporting and interpreting liabilities. After studying this chapter, you should be able to: Define, measure, and report current liabilities; use the quick ratio; analyze the accounts payable turnover ratio; report notes payable and explain the time value of money; report contingent liabilities; explain the importance of working capital and its impact on cash flows; report long-term liabilities; compute present values; apply present value concepts to liabilities.
(BQ) Part 1 book "Principles of accounting" has contents: The role of accounting in starting a business, establishing a business and the balance sheet, operating a business and the income statement, accounting systems, merchandising operations, internal control and cash, current liabilities and payroll,...and other contents.
Chapter 2 - More on financial statements. Generally contains the following standard classifications: Current assets; long-term investments; property, plant, and equipment; intangible assets; current liabilities; long-term liabilities; stockholders' equity.
Chapter 3 - The Balance sheet and financial disclosures. The balance sheet, along with accompanying disclosures, provides relevant information useful in helping investors and creditors not only to predict future cash flows, but also to make the related assessments of liquidity and long-term solvency. The purpose of this chapter is to provide an overview of the balance sheet and financial disclosures and to explore how this information is used by decision makers.
Chapter 8 - Translation of foreign currency financial statements. The topics discussed in this chapter are: Conceptual issues of foreign currency financial statements translation, difference between balance sheet exposure and transaction exposure, methods of financial statement translation, temporal and current rate methods illustrated,...