Marlene Rohme
ACC497/Advance Topics in Accounting Research
Greg Moore
celestial latitude 7, 2010
Abstract
When one is assessing financial recitals management should have a on the job(p) knowledge of what the financial didacticss means. Without the knowledge of what the narratives are concerning no organization can fully function. This paper is to tie the statements with the managements estimation of said financial statements.
Managements assessment agrees with the financial assessment that was in the financial statements paper Part I. In glide path to the conclusion to the assessment that was done in the financial statement paper I the trend analysis was used. According to the textbook, motion analysis compares individual financial statement line-items over time, with the widely distributed goal of identifying significant sustained changes (trends) that exist. These changes are typically depict in terms of dollar amounts as well as year-over-year percentages. A year-over year percentage simply expresses the change in the current year as a percentage of the prior year total.
The calculation used would be: year over year%= Change This Year X 100% = (Current Years summation - preliminary Years Total) X 100% Prior Years Total Prior Years Total.
Ratio analysis is another technique that can be used when coming to the assessment that was made. Ratio analysis involves study an amount for one or more financial statement items to an amount for other items for the same year. Ratio analysis takes into accounting system differences in the size of amounts being compared to allow people to appraise how well a company has performed given the existing train of other company resources. A companys ratios can be cipher for each year and compared across years to identify spare trends not revealed in an analysis of individual financial statement line-items. Another possibility is to compare ratios from one company to those for...If you urgency to get a full essay, order it on our website: Orderessay
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