Financial Statement Effects
Throughout this course, we will be determining the effects that transactions (or events) have on
the elements of the financial statements.
o make sure that our analysis is complete, we will often show how transactions/events af
The Johnson & Johnson Credo is below. It is an example of a corporations effort
to articulate its ethical expectations of itself. Using the Johnson & Johnson Credo
as a guide, write your own professional responsibility Credo bel
The Home Depot, Inc. operates as a home improvement retailer. It operates The Home
Depot stores that sell various building materials, home improvement products, and lawn
and garden products, as well as provide installation, hom
Exam 2 Review
The Power Rule
The General Power Rule
The Product Rule
The Quotient Rule
The Chain Rule
if is in terms of and is in terms of
, a constant
Compute for and using the ch
Only a mistake of fact makes a contract voidable. Mistakes of fact: bilateral(contract can be rescinded by either party);
unilateral-normally the contract-enforceable. Exceptions: the other party knows or should have known and a mathematical
error made in
SFAC 5 & 7: Recognition, Measurement and Disclosure Concepts
Recognition - recording information into the financial statements.
Measurement - associates a numerical amount to an element.
Disclosure including additional information in the financial stateme
Financial ratio formulas
Prepared by Pamela Peterson Drake
Average day's cost of goods sold Cost of goods sold / 365
Number of days of inventory =
Number of days of receivables =
1. What is Walmarts strategy for success?
Walmarts strategy for success can be traced back to its founder, Sam Walton. His
business strategy was to buy cheap, sell at lower prices than the competition and make
profit on high volume and high turnover. Cons
1. Analyze transactions and events to determine if they need to be recorded in the accounting
How do you determine if a transaction/event should be recorded?
(Statement of Financial Accounting Concepts No. 5)
Elements of the financial statements a
Chapter 2: Student Name_
Use these financial statements to answer the questions on this quiz.
Net fixed assets
$ 1,400 $ 2,300