Analysis And Interpretation Of
Analysis And Interpretation Of Income Statements 1. General Divisions Of The Income Statement.—the Income Or Revenue Of A Business Undertaking Is De Rived From The Sales Of Its Product Or Service, Or From Property Which It Owns. The Income May Be Broadly Classified As Between Primary Income, Sometimes Called Operating ...
Auxiliary Statements 1
Auxiliary Statements 1. Schedule Of Accounts Receivable.—the Reader Has Already Noted That The Principal Statements Which The Manager Will Receive At The End Of A Stated Period —say, A Year, Will Be The Balance Sheet And The Profit And Loss, Or Income Statement, Covering The Business As A, Whole For ...
Consolidated Balance Sheets 1
Consolidated Balance Sheets 1. Reasons For Consolidations.—from The Texts On "business Organization" And "corporation Fi Nance" The Reader Has Noticed The Important Reasons For Mergers, Consolidations And Amalgamations. The Principal Advantages Claimed For These Types Of Or Ganization Are: Reduction Of Managerial Expenses; Elimination Or Reduction Of Ruinous Competition; Ad ...
Consolidated Income Statements 1
Consolidated Income Statements 1. Introduction.—modern Developments Have Brought Forth New Forms Of Business Organizations, Each Of Which Has Features Peculiar To Itself. The Accounting System And The Form Of Financial State Ments Adopted By The Various Types Of Business Organi Zations Should Provide A Clear Record Undisturbed By Any Unusual ...
Importance Of Classified Information
Importance Of Classified Information 1. Present Need For Classified In At No Previous Period In Our Economic History Has It Been So Important To The Business Man As It Now Is To Have All Kinds Of Information About His Business Available To Him In Classified Form. With The Growth Of ...
Interpretation Of Liabilities 1
Interpretation Of Liabilities 1. Liabilities Defined And Classified.—a Liability Is A Claim Against A Debtor Which Gives To The Creditor A Right Of Action At Law. Liabilities Are To Be Dis Tinguished From Accountabilities. Thus, A Factor Who Receives A Consignment Of Goods From A Shipper Is Accountable To The ...
Interpretation Of Professional Reports
Interpretation Of Professional Reports 1. Criticism Due To Improper Interpretation.— Much Of The Unjust Criticism That Has Been Directed Against Accountants And Appraisers In The Past Is Due To The Fact That Reports Prepared By Them Have Not Been Properly Interpreted By The Business Man. On The Other Hand, Just ...
Municipal Budgets 1
Municipal Budgets 1. Development Of Municipal Budgets.—it Has Always Been Necessary For Some Part Of The Govern Mental Agencies, Either The Administrative Or The Legis Lative, To Prepare Rough Estimates Of The Necessary Expenses Of The • Corporation For The Ensuing Fiscal Year. This Information Was Used As A Basis ...
Private Budgets 1
Private Budgets 1. Purpose And Definition Of Budgets.—the Va. Rious Forms Of Financial And Other Statements, Pre Viously Discussed, Deal With Transactions Which Have Occurred In The Past. They Indicate The Success Or Failure Of Transactions Already Completed Or In The Course Of Completion. The Business Manager Of To Day, ...
Relation Of Working Capital
Relation Of Working Capital And Income To Assets 1. Relation Of Net Income To Capital Stock.—it Is A Frequent Custom In Interpreting Financial Statements To Consider That The Ratio Existing Between Net Income And Capital Stock Is A Sure Index Of The Progress Of The Business. While This Ratio Discloses ...
Reserves And Dividends 1
Surplus, Reserves And Dividends 1. Definition Of Surplus.—by The Term Surplus, Is Meant The Intrinsic Value Of All The Assets Of A Firm, Over And Above Its Liabilities And Outstanding Capital. Intrinsic Value Is To Be Distinguished From Reproduc Tive Value In That The Former Relates To The Actual Cost ...
Sinking Funds And Other
Sinking Funds And Other Funds 1. The Theory Of The Sinking Fund.—corporate Bondholders Require The Assurance That The Amount Due To Them Will Be Paid At Maturity. To Accomplish This, The Indenture Provides That A Certain Annual Sum Shall Be Set Aside At Periodic Intervals, Which, When Invested And Reinvested ...
Statistical And Graphical Statements
Statistical And Graphical Statements 1. Purpose And Scope Of Business Statistics.—the Reader Has Already Been Familiarized With The Value Of Statistical Statements As Supplements To Financial Statements. By Business Statistics We Mean The Rec Ords That Grow Up Out Of The Operations Of Industrial And Mercantile Establishments. As A Rule, ...
Treasury Stock And Its
Treasury Stock And Its Treatment 1. Treasury Stock Defined.—treasury Stock Is That Stock Of A Corporation Which Has Once Been Issued For Value And Which Subsequently Has Been Reacquired Thru Purchase Or Thru Donation Or In Exchange For A Debt. The Term "treasury Stock" Is Frequently Mis Used In Place ...
Valuation And Interpretation Of
Valuation And Interpretation Of Fixed Assets 1. Fixed Or Capital Assets.—the Assets Designated As Fixed Or Capital Assets Are Those Of A Permanent Na Ture Which A Business Organization Has Acquired, And Which Are Generally Financed Thru The Issue Of Capital Stock Or Bonds. In Some Instances, Assets Of This ...