1 whats the job of an auditor auditors are

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1. What’s the job of an auditor? Auditors are responsible for examining the financial health of the organization as well as looking into the operational effectiveness and efficiencies
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of the organization. 1. What do we call the formula for the balance sheet? What three accounts does it include? The formula for the balance sheet is referred to as the fundamental accounting equation. This equation includes the following three accounts: assets, liabilities and owners equity. 1. What does it mean to list assets according to liquidity? Assets on the balance sheet are listed according to how quickly they can be converted to cash. Therefore as you move down the balance sheet it becomes more difficult to convert the assets into “liquid” cash. 1. What’s included in the liabilities account on the balance sheet? Liabilities are what the business owes to others. The liability account is divided into current and long-term liabilities. Common liability accounts include: accounts payable, notes payable and bonds payable. 1. What’s owners’ equity and how do we determine it? Owners’ equity is the amount of the business that belongs to the owners, minus any liabilities the business owes. The formula for owners’ equity is assets minus liabilities. 1. What’s the primary purpose of performing ratio analysis using the firm’s financial statements? Ratio analysis is the assessment of a firm’s financial condition, using calculations and financial ratios. Financial ratios are especially useful in comparing the company’s performance to its financial objectives and to the performance of others in the industry. 1. What are the four main categories of financial ratios? The four main categories are as follows: liquidity, leverage, profitability and activity. Financial Management TONYA ANTONUCCI Finance -- The function in a business that acquires funds for a firm and manages them within the firm. Finance activities include: - Preparing budgets - Creating cash flow analyses - Planning for expenditures Financial Management -- The job of managing a firm’s resources to meet its goals and objectives. TOP FINANCIAL CONCERNS of COMPANY CFOs Ability to accurately forecast financial results Maintaining productivity during an economic downturn Balance sheet weakness Rising cost of healthcare Attracting and retaining top quality employees 顶顶顶顶顶顶顶顶顶 , 顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶
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FINANCIAL PLANNING Financial planning involves analyzing short-term and long-term money flows to and from the company.
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