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Discuss each of the following terms. Your discussion should expand on the definition as given in the course terms. Explain why this concept is...

Discuss each of the following terms.  Your discussion should expand on the definition as given in the course terms.  Explain why this concept is important to financial statements.
A.  Generally Accepted Accounting Principles.
B.  Double Entry Accounting.
C.  Historical Cost.
D.  Accrual Basis vs. Cash Basis Accounting.
E.  Current Assets and Liabilities vs. Non-Current Items.
  Refer to the following three sets of annual reports which contain the financial statements. You may find the financial data independent of the annual report for Google.  (Make sure you use the latest financial statements -- for the year 2007, or later if available).  First read an overview of the company so you are familiar with the company, its products/services and markets and then review the annual report and supplemental financial statements.
1. BP  (http://www.bp.com)
BP  Financial Statements and Annual Report
http://www.bp.com/extendedsectiongenericarticle.do?categoryId=9021605& contentId=7040949
2. Quicksilver Inc. (http://www.quicksilverinc.com)
QuickSilverInc Annual Report and Financial Statements
http://www.quiksilverinc.com/investor_anualreports_04.aspx
3.  RTL Group (http://www.rtlgroup.com)
RTL Group Annual Report and Financials
http://www.rtlgroup.com/www/htm/annualreport.aspx
Locate the following on each of the statements:
The Balance Sheet
The Income Statement
The Statement of Cash Flows
Describe the general organization of each of the three sets of financial statements. Which is more useful in your opinion for each of the three companies:  Net Income or Cash from Operating Activities?
Predict companies' future trends using Net Income or Cash Flows.  Reach one additional conclusion about each company from the additional information you find in the annual report.  Since a several of these companies are conglomerates, discuss how you can find out relevant information about individual segments, such as the IDOLS segment of the RTL Group's Fremantle Media North America.

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