A close friend of yours, who is a history major and who has not had any college courses or any experience in business, is receiving the financial statements from companies in which he has minor investments (acquired for him by his now-deceased father). He asks you what he needs to know to interpret and to evaluate the financial statement data that he is receiving. What would you tell him?
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A close friend of yours, who is a history major and who has not had any college courses or any experience in business, is receiving the financial statements from companies in which he has minor investments (acquired for him by his now-deceased father). He asks you what he needs to know to interpret and to evaluate the financial statement data that he is receiving. What would you tell him?
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- A close friend of yours, who is a history major and who has not had any college courses or any experience in business, is receiving the financial statements from companies in which he has minor investments (acquired for him by his now-deceased grandfather). He asks you what he needs to know to interpret and to evaluate the financial statement data that he is receiving. What would you tell him?Your doctor got to know that you are studying accounting and he has bought some shares from XYZ company. He received a lengthy financial report, so your doctor requests your advice as to whether he should contact the company to complain that the financial information is not understandable. Advise your doctor by justifying with GAAP principleJohn Nowo has been a client of your firm for many years. Whilst preparing his account you become aware and concerned about sources of money into his bank account. You invited John to a meeting and the explanations that he provided were not satisfactory. Required: Can you explain the importance of the Code of Conduct in this specific situation.
- Assume that you are already a certified public accountant and has an accounting firm. you will introduce yourself to a client and you have all the services thay public accounting can offer. Explain to your client why he/she would need your services. Hi! I am _______ (yourname) a Certified Public Accountant and I owned _____________ (name of your accounting firm). I offer external auditing wherein I __________________________________________________________________________________________________________________________________________. I am also expert in Tax preparation and planning. I can help you to ________________________________________________________________________________________________________________________________________________________________________. Oh, before I forgot I have a lot of experience in Management advisory services I can give you a lot of effective advices such as…You are an accountant with a client that wants to set up a new company. She has come to you to ask what type of company to form. She is trying to decide between a corporation, an LLC, or a sole proprietorship. Taking into account the ability to raise capital, liability protections, taxation issues, ability to transfer ownership, and any other aspects you can discover discuss the pros and cons of the various entity forms. You can use your textbook but you should consult other courses as well. (It depends on what kind of company your client is opening and what they want to accomplish. The best you can do is give the client some information to think about. This post should cover the general aspects of the various type of business entities.)You just attended a conference which titled “Issues in Financial Reporting’. Your Financial Accountant wants the Accounting Team to get some update from the conference you have just attended. Your Financial Accountant requested you to write a REPORT and explain the following issues: a) What is the importance of Financial Reporting
- A friend asked you to reveal important financial information of the company, being a finance manager of the company what would you do? Justify by considering ethics in finance.Jake is a financial adviser at a small firm that publishes an online financial blog for the benefit of clients and prospective clients. Jake's firm subscribes to a service from a large investment research firm that provides research on the securities of a variety of companies and the general investment outlook for different industry sectors. Jake often includes these research reports in the blog. Jake (Choose the best answer.) O (No answer given) O cannot misrepresent his capabilities by sharing research he has not produced. cannot plagiarize the reports by including them in the blog. O none of the choices. O must attribute the research to its source.You are employed as an accountant for Innovative Computing. Your company is in the process of signing a large contract with an electronics components supplier. You have a friend who works for the electronics components supplier, and you were told the company having trouble paying bills. You ask to review the financial statements of the supplier. 1. Which financial statements would you find most helpful to determine the creditworthiness of the supplier? What information from the financial statements would you use to either support or disprove your friend’s claims? 2. What are the four basic financial statements? What is their purpose and what does each one tell you about a company? 3. How are the four financial statements interrelated? Which line items are used to prepare other statements? 4. In your opinion, explain which financial statement you think is the most important?
- You have recently been hired by Davis & Company, a small public accounting firm. One of the firm’s partners, Alice Davis, has asked you to deal with a disgruntled client, Mr. Sean Pitt, owner of the city’s largest hardware store. Mr. Pitt is applying to a local bank for a substantial loan to remodel his store. The bank requires accrual based financial statements but Mr. Pitt has always kept the company’s records on a cash basis. He does not see the purpose of accrual based statements. His most recent outburst went something like this: “After all, I collect cash from customers, pay my bills in cash, and I am going to pay the bank loan with cash. And, I already show my building and equipment as assets and depreciate them. I just don’t understand the problem.Mr. Pitt has relented and agrees to provide you with the information necessary to convert his cash basis financial statements to accrual basis statements. He provides you with the following transaction information for the fiscal…You have recently been hired by Davis & Company, a small public accounting firm. One of the firm’s partners,Alice Davis, has asked you to deal with a disgruntled client, Mr. Sean Pitt, owner of the city’s largest hardwarestore. Mr. Pitt is applying to a local bank for a substantial loan to remodel his store. The bank requires accrualbased financial statements but Mr. Pitt has always kept the company’s records on a cash basis. He does not seethe purpose of accrual based statements. His most recent outburst went something like this: “After all, I collectcash from customers, pay my bills in cash, and I am going to pay the bank loan with cash. And, I already show mybuilding and equipment as assets and depreciate them. I just don’t understand the problem.”Required:1. Explain the difference between a cash basis and an accrual basis measure of performance.2. Why, in most cases, does accrual basis net income provide a better measure of performance than net operatingcash flow?3. Explain the…Mr. A started his own business. As it is a very small business with little investment and very less transactions, he does not want to hire any employees to record the transactions happening in the business. As he is not from an Accounting background, he finds it very difficult to understand how to classify the transactions and record. Some transactions are given to you to help him classify transactions category under A) Current Assets B) Current Liabilities C) Long term liabilities D) Long term Assets E) Contingent Liability. You are also required to guide him how you have classified a particular transaction by giving suitable reasons in the books of both the parties. Suppose Mr. A has purchased goods for using it in manufacturing from Mr. B on credit for RO 5000. A’s company borrowed money from Bank Muscat promising to repay it after 2 years. A Promised to deliver the goods to Mr. Z on June 1st Mr. Z paid the cash of RO. 2,500 before the goods were delivered to him.…