Accounting Analysis On Financial Accounting - 1185 Words

Accounting has many branches that it can be divided into. It can be divided into several areas of activities. Accountings main branches are financial accounting, Management accounting, Cost accounting, Auditing, Tax accounting, Accounting systems, Fiduciary accounting and Forensic accounting. Financial accounting: This branch of accounting measure’s and records the transactions of a business. Financial accounting focuses on the preparation of the five basic financial statements namely statements of financial position, statements of comprehensive income, statements of cash flows, statement of changes in equity and notes to financial statements. At the end of a period usually a year a profit and loss account and a balance sheet is prepared†¦show more content†¦It is governed by the internal revenue code and has specific instructions that should be followed by individuals and companies when preparing tax returns. Accounting Systems: Accounting systems involves the implementation, installation, development and monitoring of accounting procedures and the systems used in the accounting process. This includes the gathering of accountable financial data, software management, accounting personnel directing and the designing of business forms to be used in the data- gathering process. This branch is linked to management advisory services. To be successful in this field technical knowledge and skills in information technology is needed. Fiduciary Accounting: Fiduciary accounting is the accounting and evaluation of a third party’s business, property and possessions maintained under the guardianship by an entrusted individual. A few examples of fiduciary accounting include receivership, trust accounting and estate accounting. Forensic Accounting: This branch involves the investigation of embezzlement or fraud using accounting skills and analysing financial information to be used in legal proceedings. Forensic accounting deals with court and litigation cases, fraud investigation, claims and dispute resolution and other areas that involve legal matters. This area is a popular trend inShow MoreRelatedRatio Analysis Financial Accounting3622 Words   |  15 PagesFinancial Accounting and Reporting – Ratio Analysis The following five-year summary relates to VKM Ltd, and is based on financial statements prepared under the historical cost convention. Financial Ratios 2006 2005 2004 2003 2002 Profitability Margin Trading Profit Revenue % 7.8 7.5 7.0 7.2 7.3 Return on Assets Trading Profit Net Operating Assets % 16.3 17.6 16.2 18.2 18.3 Interest Dividend Cover Interest cover Trading Profit Net Finance Charges times 2.9 4.8 5.1 6.5 3.6 DividendRead MoreReflection And Analysis Of Financial Accounting1983 Words   |  8 Pages Reflection and Analysis Academic Preparation Throughout my first two years at Wilfrid Laurier University, a few courses have aided my time at Chan Co. 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The project requiresRead MoreA Financial Statement Analysis Project for Introductory Financial Accounting5944 Words   |  24 PagesPerspectives on Accounting Education Volume 6, 2009, 83-96 A FINANCIAL STATEMENT ANALYSIS PROJECT FOR INTRODUCTORY FINANCIAL ACCOUNTING Marilyn B. Misch Business Administration Division Pepperdine University Malibu, California USA Carolyn A. Galantine Business Administration Division Pepperdine University Malibu, California USA ABSTRACT This paper describes a financial statement analysis project useful in both preparerbased and user-based introductory courses in financial accounting. The project Read MoreFinancial Analysis : Financial Accounting Standards Board1606 Words   |  7 PagesAccording to the conceptual frameworks used by both the Financial Accounting Standards Board and the International Financial Standards Board, one of the main reasons why companies prepare financial reports is to allow users of financial statements make decisions regarding the provision of resources to the firm (Financial Accounting Standards Board, 2010; International Financial Standards Board, 2010). These decisions relate to the buy, sell, or hold moves that investors make based on the informationRead MoreInadequacies of Accounting Ratios as Tools of Financial Analysis.1481 Words   |  6 PagesRatio analysis provides an indication of a companys liquidity, gearing and solvency. But ratios do not provide answers; they are merely a guide for management and others to the areas of a companys weaknesses and strengths (Palat 1999). 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