Choose a CPA or Auditor Do you choose a CPA or auditor? Any company whose stock is sold to the public is subject to the reporting requirements of the Securities & Exchange Commission, which include having its financial statements audited by an independent certified public accountant. Whereas companies, whose stock is not sold to the
Tag: financial statements
See Also: Cash Flow After Tax 13 Week Cash Flow Report How to Produce Realistic Sales Projections Optimistic Projections Why Most Sales Projections Fail Cash Flow Projections Financial statements are the basic building block for understanding how a business is doing. They provide management a way to assess the results and consequences of past decisions.
See Also: International Financial Reporting Standards Financial Ratios Financial Instruments Finance Derivatives Finance Beta Definition FASB Lease Accounting Changes Financial Accounting Standards Board (FASB) The Financial Accounting Standards Board (FASB) is the organization that is responsible for both establishing and interpreting the standards of financial accounting and reporting practices in the U.S. One may know
See Also: Current Liabilities Balance Sheet Accounting Principles Accounting Concepts Subsequent Events Contingent Liability Definition A contingent liability, defined is an obligation that a company might or might not have to recognize. This is because the event(s) are uncertain. It is also necessary for future events to occur to determine whether or not the obligation
See Also: Balance Sheet Income Statement Cash Flow Statement Margin vs Markup Net Income Common Size Financial Statements Definition The common size financial statements definition is a form of financial statement analysis that shows the actual dollar amounts for a balance sheet or income statement as well as the relative percentages for each one of
See also: Problems in Chart of Account Design Complex COA Number for SGA Expenses Example Chart of Accounts for Selling General and Administrative Account Reconciliation Account Reconcilement Definition Chart of Accounts Defined The chart of accounts (COA) is a listing of the general ledger accounts used by an organization to record transactions. For example, the
See Also: Cash Flow Statement Statement of Financial Accounting Standards (SFAS) What is GAAP? Daily Cash Flow Forecast Prepare an Investor Package Cash Flow Statement Example For example, Saundra has started providing angel investment to promising start-up businesses. Operating under the name Angelco, she is using the wealth she built in her professional career to
See Also: Financial Ratios Cash Flow After Tax How to Create Dynamic Cash Flow Projections Steps to Track Money In and Out of a Company EBITDA Definition Cash Flow Statement Definition The cash flow statement definition is a financial statement that shows a company’s cash inflows and cash outflows over a period of time. The
See Also: How to manage your banking relationship. Which Bank to Choose? Is It Time To Find A New Bank? 5 C’s of Credit (5 C’s of Banking) Bank Reconciliation Definition The bank reconciliation definition is the settlement of records between the balance per company financials and the balance per the bank statement. The process of
Auditor In accounting, an auditor is a certified public accountant (CPA) who performs an objective examination of a company’s financial statements and internal controls. They evaluate the validity and reliability of the data and confirms whether the financial statements were prepared in accordance with the rules of GAAP. Furthermore, there are two types: an internal auditor
Audit Scope Example Ely is an auditor for the IRS. His work, some of the most technical for any forensic accountant, involves looking deeply into a company to find errors which may lead to prosecution. By doing this, Ely is preventing the company from any financial foul-ups that could lead to fraudulent information being shared.
See Also: Accounting Principles Probable Losses Subsequent Events Business Segments How to Make Dramatic Changes in Business Planning Your Exit Strategy Percentage Completion Method What Your Banker Wants You To Know Accounting Changes Accounting changes and error corrections are the switch from one principle of accounting to another – like with inventory and recognition of