ACCT 1201 Chapter Notes - Chapter 5: Income Statement, Accounts Receivable, Gross Profit
13 Feb 2014
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Document Summary
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, Pcaob, and stock exchanges: managers (ceo, cfo, accounting staff) keep track of accounting records/ transactions, complete the 9 steps of the reporting process and compile financial statements. Press releases quarterly and annual earnings (investor reaction to press release vs. 10k) Annual report (10k) contents for public companies: the four basic financial statements, notes (footnotes) Review of financial statement format and contents: classified balance sheet . +/ nonoperating revenues/expenses and gains/losses and interest expense. 3: statement of stockholders" equity statement of retained earnings included. Return on assets (roa), profit margin, and total asset turnover ratios: return on assets = net income average total assets (profitability) Measures how much the firm earned for each dollar of investment.
