Acct Process & Fin Statements

University of Phoenix ACC 501, Accounting for Decision Making Block 1 Financial statements are a primary resource for the general public, companies, and potential investors who hope to go over how a caller-up is fiscally. Financial statements can show a companys strengths and weaknesses in many different areas, non just financial. I leave explain about many concepts to financial statements: Generally certain Accounting Principles, Contra-As delimit Accounts, Historical Costs, accumulation Basis vs. Cash Basis Accounting, and Accounting Standards Codification. I will also discuss three companies; Samsung, Lockheed Martin, and RTL Group; establishing whether Net Income or Cash from Operating Activities is more useful for each of these companys financial statements. I will conclude with a prediction of each company from the financial statements. Generally Accepted Accounting Principles (GAAP), are the primary first impression on how companies organize their financial statements. InvestorWords defines GAAP as a widely accepted set of rules, conventions, standards, and procedure for reporting financial info (2011). All companies would have the same basic financial statements if they get hitched with GAAP.

Not all companies will have the exact financial statements or records, but having a general process and set of standards such as GAAP will put ahead a set of standardization. GAAP are not a fixed set of rules. They are guidelines or more precisely, a group of objectives and conventions that have evolved over time to govern how financial statements are prepared and presented (AllBusiness.com, 2011). The word contra according to Merriam Webster dictionary meat in resister or contract to (2011). For that reason, in opposition a contra account is an account which offsets another account; therefore a contra-asset account has a credit balance and offsets the calculate balance of the corresponding asset (InvestorWords, 2011). In simpler terms, its the... If you want to get a full essay, order it on our website: Orderessay

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