Management and Organizational Studies 1023A/B Study Guide - Midterm Guide: General Journal, Uptodate, Cebit

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Maria Ferraro

Document Summary

Intracompany comparisons- covering 2 years for the same company. Intercompany comparisons- based on comparisons with a competitor in the same industry. Industry average comparisons based on avg ratios for particular industries. Using the balance sheet: mostly relationship between assets and liabilities. Profitability: earnings per share- profit available to common shareholders weighted average number of common shares. Analyzing transactions: each transaction has dual (double-sided) effect on the equation, two or more items can be affected at once. Investment by shareholders- when cash invested in exchange for common shares, goes under assets (bc cash earned) and equity. Purchase of insurance- paid for using cash which was exchanged for an asset that is prepaid. Services performed on account- company provided advertising service on account, so increase in. Includes all transactions performed in period of time. Sum of all debits = sum of all credits. Liability and equity accounts normally show debit balance.