1.
List four basic financial statements.
2.
Compute the amount for
3.
Compute total revenue of CVS for the year ended December 31, 2010.
4.
Identify whether CVS is profitable in the year ended December 31, 2011. Compute net income and find whether it increase or decrease for the year ended December 31, 2010.
5.
Identify whether company’s cash and cash equivalents increased from December 31, 2010 to
December 31, 2011, in case of yes indicate the amount. List the two places in the statements that the number is found and evaluated.
6.
Indicate whether cash flow from all three activities increase or decrease from the year 2010 to 2011.
7.
Identify the auditor of the company and give reason for the importance of the auditor’s report that is accompanied by the financial statement.
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Principles of Accounting
- The standards, procedures, and principles companies must follow when preparing their financial statements are known as which of the following? A. Financial Accounting Standards Board (FASB) B. generally accepted accounting principles (GAAP) C. Securities and Exchange Commission (SEC) D. conceptual frameworkarrow_forwardThe specific seven-digit Codification citation (XXX-XX-XX) that requires a company to identify and describe in the notes to the financial statements the accounting principles and methods used to prepare the financial statements.arrow_forwardPlease analyze, assess, and synthesize the Annual Report or Form 10-K or Form 20 - F (whatever they call it in that jurisdiction) of the company you choose. You can usually find it on the Company's website in Investor R. Introduction 2. Industry situation and company plans A. Management Letter B. B. Review Company's Products and Services 3. Financial Statements A. Income Statement B. Cash Flow Statement C. Balance Sheet D. Accounting Policies 4. Financial Analysis & Ratio A. Financial Analysis B. Ratio C. Market Indicator Financial Ratios 5. References 6. Complete Calcuation of Part 4 in excelLimiarrow_forward
- The Corporate Information worksheet asks the question, "Complete the return from GIFI?" Which of the following statements is INCORRECT? Question 4Answer a. GIFI refers to generally indexed financial information. b. If you answer yes, the amounts from the corporation's financial statements must be entered on schedules 100 and 125. c. Schedule 100 reports the amounts from the corporation's balance sheet. d. Schedule 125 reports the amounts from the corporation's statement of income. e. GIFI indicates that the financial information from the corporation's financial statements is not entered, as the T2 is prepared for income tax purposes only.arrow_forwardActive In order for a company to distribute its financial statements to the public, it is required to follow the "generally accepted accounting principles" (GAAP). GAAF assumptions, and methods. A company generally lists the significant accounting policies as the first note in the financial statements. Review the financial stat Statement Analysis Report. Select two of the significant accounting policies and discuss how each policy impacts the financial reporting for that entity. To part to a peer's discussion post, and identify how the reporting standards are different or similar for the company the peer is reporting on.arrow_forwardListed below are several types of pronouncements that the FASB issues. Following the lis is a series of descriptive statements. a. Statements of Financial Accounting Standards b. Interpretations c. Technical Bulletins d. Statements of Financial Accounting Concepts e. Guide for Imprementation _____ Establishes a theoretical foundation upon which to base fanancial accounting and reporting standards. _____ Provides clarification of conflicting or unclear issues relating to previously issued pronouncements. _____ FASB Q's and A's. _____ Establishes generally accepted accounting principles. _____ Provides guidance on accounting and reporting problems related to an underlying standard.arrow_forward
- Examine Note 4.1.1 of AF’s annual report. What accounting principles were used toprepare AF’s financial statements? Under those accounting principles, could AF’sfinancial information differ from that of a company that exactly followed IFRS aspublished by the IASB? Explain.arrow_forwardThe International Accounting Standards Board (Board) issued the revised Conceptual Framework for Financial Reporting (Conceptual Framework), a comprehensive set of concepts for financial reporting, in March 2018.Required:Discuss the importance of the Conceptual Framework for financial reporting.arrow_forwardBased on the background example of this assignment, kindly provide answer/working of this assignment please. 1) The person in charge of the finances of the company MGT, S.A. wants to know the company's situation concerning the industrial sector to which it belongs. For this, it has the following information regarding the industry: a) General liquidity ratio is 1.55; the acid test is 1.20, and the ratio between the available and the current liabilities is 0.95. b)The debt ratio stands at 1.25. The margin on sales is 21%. The investment rotation is 1.45 times. c) Economic profitability is around 23%, and financial profitability is 29% The data referred to the company (in thousands of €) are the following: Assets Liability and Net Equity Non-current asset (net) 170 Equity 125 Stocks of finished products 45 Reservations 25 Clients 65 External Resources 105 Banks 70 Loans 65 Supplier 30 Total Assets 350 Total Net Equity…arrow_forward
- The financial information presented in the financial statements needs to have some key qualitative characteristics to make it useful to the users of financial statements. a) Describe the "reliability" characteristic of financial information. b) Chairman's statement is not a compulsory disclosure. Discuss the reason for most of the annual reports include it as an important qualitative information? c) With examples, explain the five (5) components of the accounting equation that made up the statement of financial position (balance sheet), which is one part of several financial statement's components. d) Discuss how auditor's opinion helps the shareholders in their decision-making process. Tarrow_forwardThe standards, procedures, and principles companies must follow when preparing their financial statements are known as which of the following? Conceptual framework Financial Accounting Standards Board (FASB) Securities and Exchange Commission (SEC) Generally Accepted Accounting Principles (GAAP)arrow_forwarda) The IASB's Conceptual Framework for Financial Reporting lays out the objectives and fundamentals that will guide the development of financial accounting and reporting standards. The purpose of financial reporting is defined by its objectives. The characteristics or qualities of information discussed in the Conceptual Framework are the concepts that make information useful and the qualities to be sought when accounting choices are made. Required i. Explain the benefits that the firms derived from the Conceptual Framework in preparing their financial statements. ii. Explain the most essential quality for accounting information as stated in the Conceptual Framework? Justify your answer with an example.arrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning