ACCT 1201 Chapter 5: ACCT Chapter 5 Condensed(1).docx
22 Mar 2013
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Return on assets (roa), profit margin, and total asset turnover ratios. Players in the accounting communication process: regulators (sec, fasb, pcaob, stock exchanges) sec oversees the fasb, Regulators oversee the process; stock exchanges are their own regulators. Pcaob oversees auditors (the people who oversee gaap) Nominating committee hires board of directors, finance committee decides on debt v. equity. The only important committee for this class is the audit committee: before sox, after sox. Institutional investors include northeastern university, teachers unions, labor unions like calpers invest in mutual funds etc. Bp has legal risks: the four basic financial statements, notes (footnotes, report of independent accountants (auditor"s opinion) and the. +/ nonoperating revenues/expenses & gains/losses & interest expense (peripherals) Earnings per share (net income divided by shares) Example: dw roberts, a us company sells industrial machinery and had the following balances in among other amounts on their adjusted trial balance at december 31, 2011:
