Understanding Financial Statements and Accounting Principles
Balance Sheet
Current Assets
- Liquidity
- Cash
- Marketable Securities
- Prepaid Expenses
Current Liabilities (Due Within One Year)
- Accounts Payable
- Salaries Payable
- Accrued Expenses
Long-Term Liabilities
- Notes Payable
- Leases
- Bonds Payable
Income Statement
Revenue: Recognized when earnings are substantially complete.
Expenditures (Historical Costs): All assets/liabilities are recorded at cost.
Conservatism
- Accountants strive to avoid overly optimistic financial statements.
- Conservatism guides accountants to choose the approach
E-Business Strategies and Models
Key Terminology
M-commerce, E-commerce, E-business
E-commerce describes the process of buying, selling, transferring, or exchanging products, services, and/or information via computer networks, including the internet.
M-commerce is a subset of electronic commerce and refers to online activities similar to those in e-commerce, but it is limited to mobile telecommunication networks, which are accessed through wireless hand-held devices.
What is E-business?
IBM Definition
The transformation of key business
Read MoreIn-Depth Guide to Financial Statement Analysis Methods
Basic Analytical Methods
Users analyze a company’s financial statements using a variety of analytical methods. Three such methods are as follows:
1. Horizontal Analysis
Horizontal analysis is the percentage analysis of increases and decreases in related items in comparative financial statements. Each item on the most recent statement is compared with the related item on one or more earlier statements in terms of the following:
- Amount of increase or decrease
- Percent of increase or decrease
When comparing
Read MoreA Review of Early American Financial History
Allison’s Perspective on Early American Banking
First and Second Bank Failures
Allison’s view: Allison argues that the First and Second Banks of the United States were failures.
Counterarguments: While the banks ultimately failed to secure charter renewals, they played a crucial role in jumpstarting the economy, managing war debt, and stabilizing inflation. Their contributions suggest a more nuanced perspective on their success.
Key Financial Components
Understanding the six key financial components
Read MoreE-Business Strategies and Models
Key Terminology
M-commerce, E-commerce, E-business
E-commerce describes the process of buying, selling, transferring, or exchanging products, services, and/or information via computer networks, including the internet.
M-commerce is a subset of electronic commerce and refers to online activities similar to those in e-commerce, but it is limited to mobile telecommunication networks, which are accessed through wireless hand-held devices.
What is E-business?
IBM definition – the transformation of key business
Read MoreInternational Marketing True/False Questions & Answers
True or False
Marketing Mix
FALSE – Price is the only marketing mix instrument that creates costs. All other elements entail revenues.
TRUE – Typically, for identifying new product ideas, we look at the 4 C’s, which are: Company, Customers, Competition and Collaborators.
Test Marketing & Global Advertising
TRUE – Test marketing may be skipped to save money, and lead markets can be used as projections.
TRUE – Global advertising encompasses areas such as advertising planning, budgeting, resource allocation
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