Sample Essay on:
Financial Questions; The Four Financial Statement, The Use of Ratios and Problems with the Sarbanes-Oxley Act

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Essay / Research Paper Abstract

This 3 page paper is written in three parts. The first looks at each of the four financial statements, identifies what they are, what information they contain and looks at how they link together. The second part of the paper discusses which ratios are the most important ratios to use in a ratio analysis. The last part of the paper discusses some of the problems and potential problems with the Sarbanes-Oxley Act. The bibliography cites 2 sources.

Page Count:

3 pages (~225 words per page)

File: TS14_TEquest22.rtf

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Unformatted sample text from the term paper:

first necessary to consider what the make up of each statement, this will help to show how they are related. The first is the balance sheet; this lists the assets and liabilities of a firm at a given point in time. There may be increased levels of cash and cash equivalents as a result of retained earnings that are carried over from the profit and loss account, as this is where the cash assets are created. The depreciation of assets on the balance sheet is also carried over to the profit and loss account as a charge in order to satisfy the matching convention where the cost of an asset should be matched against the cost. The income statement; this may also be known as the profit and loss account. This statement looks at the revenues that have been earned by a firm and the expenses that have been incurred as a direct and indirect impact of ongoing operations. It should be noted where there is the purchase of an asset that is expected to last more than twelve months this will not be shown as an operating cost. The statement of equity; this is also known as the statement of retrained earnings, or in some cases the statement of owners equity. This shows changes in the level of retained earnings, the retained earnings will be seen on the balance sheet therefore, this uses information from both the balance sheet and the income statement. The last statement is the cash flow statement; this brings together the information of where all cash coming into the company has originated and where it is going and changes in the cash balance. This will reflect changes seen elsewhere in the accounts, for example of there ...

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