Reporting to ManagementACG_Kassidy McKay.pptx

This is a voiced over presentation for my business accounting class

1. Reporting to Management Kassidy McKay

2. Balance Sheet Purpose- Show the financial status and health of a company. Types of Accounts- Assets Liabilities Equity Assets- Cash Supplies Inventory Vehicles Deposit at Vendor Liabilities- Loan Payable Interest Payable Equity- Common Stock Retained Earnings

3. Balance Sheet Ratios Ratios- Debt to Assets Return on Assets Return on Equity Debt to Assets- Total Debit/Total Assets=0.61% A ratio that identifies how much debt a company has compared to the value of the assets it owns. Return on Assets- Net Income/Total Assets=0.07% A ratio that identifies how profitable a company is relative to its total assets. Return on Equity- Net Income/ Shareholders’ Equity=0.00005% Measures the company’s financial performance.

4. Profit and Loss Purpose- To show a company’s expenditures and revenues over a period of time.

5. Cash Flows Purpose- To track inflow and outflow of cash, these provide insights into the company’s financial health and operational efficiency. Operating Activities- Performs to make revenue. Investing Activities- How much cash has been made or spent. Financing Activities- Reveal health and direction of a company. Supplies Inventory- Uses Cash Vehicles- Uses Cash Common Stock- Provides Cash Provides or Uses Cash: Types of Activities:

6. Internal Controls Control Environment Risk Assessment Separation of Duties Compliance with Law and Regulations Information and Communication

7. Concepts and Key Terms Learned

8. References- The purpose of a balance sheet . (n.d.). https:// www.chase.com /business/knowledge-center/start/the-purpose-of-a-balance-sheet Weidinger , D. (2023, October 17). What is the purpose of a balance sheet? (plus how it works) . Indeed.com . https:// www.indeed.com /career-advice/career-development/purpose-of-balance-sheet#:~:text=The%20purpose%20of%20a%20balance%20sheet%20is%20to%20reveal%20the,financial%20status%20of%20an%20organization. How to Read & Understand a balance Sheet | HBS Online . (2020, April 2). Business Insights Blog. https:// online.hbs.edu /blog/post/how-to-read-a-balance-sheet Controller, C., & Controller, C. (2024, August 20). Accounting for prepaid vendor deposits| Complete Controller . Complete Controller | America’s Bookkeeping Experts. https:// www.completecontroller.com /how-to-account-for-prepaid-vendor-deposits/#:~:text=The%20amount%20you%20pay%20in,to%20cater%20for%20such%20expenses.

9. References- International Monetary Fund. (2000). CLASSIFICATION OF FINANCIAL ASSETS. In International Monetary Fund Manual on Monetary and Financial Statistics (pp. 36–37). https:// www.imf.org /external/pubs/ft/ mfs /manual/pdf/mmfsch4.pdf Martins, A. (2023, May 3). Is a car an asset? Investopedia. https:// www.investopedia.com /car-asset-5207357#:~:text=Because%20you%20can%20convert%20a,Wear%20and%20tear Wiedenhoeft , R. (2024, April 12). Inventory: an asset or a liability for businesses? | SVA . SVA. https:// accountants.sva.com /biz-tips/inventory-an-asset-or-a-liability-that-is-the-question#:~:text=The%20main%20reason%20inventory%20is,many%20businesses%20make%20a%20profit. Tuovila , A. (2024, May 31). Cash and Cash Equivalents (CCE): definition, types, and examples . Investopedia. https:// www.investopedia.com /terms/c/ cashandcashequivalents.asp #:~:text=This%20is%20because%20cash%20and,their%20short%2Dterm%20debt%20obligations. Vipond, T. (2024, August 14). Interest payable . Corporate Finance Institute. https:// corporatefinanceinstitute.com /resources/accounting/interest-payable/#:~:text=Interest%20Payable%20is%20a%20liability,interest%20currently%20owed%20to%20lenders.

10. References- FreshBooks. (2024, July 17). Accounting for loans receivable: Here’s how it’s done . https:// www.freshbooks.com /hub/accounting/accounting-loans-receivable#:~:text=is%20an%20asset.-,Loans%20Payable,also%20include%20lines%20of%20credit. Chen, J. (2024, June 14). Common Stock: What It Is, Different Types, vs. Preferred Stock . Investopedia. https:// www.investopedia.com /terms/c/ commonstock.asp #:~:text=Why%20Is%20Common%20Stock%20Called,composed%20of%20assets%20and%20liabilities. What are retained earnings? (n.d.). BDC.ca . https:// www.bdc.ca / en /articles-tools/entrepreneur-toolkit/templates-business-guides/glossary/retained-earnings#:~:text=Retained%20earnings%20are%20the%20amount,equipment%2C%20R%26D%2C%20and%20marketing. Hayes, A. (2024, February 22). Total Debt-to-Total Assets Ratio: Meaning, Formula, and What's Good . Investopedia. https:// www.investopedia.com /terms/t/ totaldebttototalassets.asp #:~:text=What%20Is%20the%20Total%20Debt,of%20the%20assets%20it%20owns.

11. References- Hargrave, M. (2024, August 26). Return on Assets (ROA): formula and "Good" ROA defined . Investopedia. https:// www.investopedia.com /terms/r/ returnonassets.asp #:~:text=Return%20on%20assets%20(ROA)%20is,resources%20to%20generate%20a%20profit. Fernando, J. (2024, July 18). Return on Equity (ROE) calculation and what it means . Investopedia. https:// www.investopedia.com /terms/r/ returnonequity.asp #:~:text=Return%20on%20equity%20(ROE)%20is,company's%20return%20on%20net%20assets. Fernando, J. (2024a, June 30). Profit and Loss Statement Meaning, importance, types, and examples . Investopedia. https:// www.investopedia.com /terms/p/ plstatement.asp #:~:text=A%20profit%20and%20loss%20(P%26L)%20statement%20is%20one%20of%20the,usually%20over%20one%20fiscal%20year. Murphy, C. B. (2024, August 9). Cash Flow Statement: What it is and how to read one . Investopedia. https:// www.investopedia.com /investing/what-is-a-cash-flow-statement/#:~:text=A%20cash%20flow%20statement%20tracks,and%20fund%20its%20operating%20expenses.

12. References- FreshBooks. (2024b, July 22). What are operating activities in a business? https :// www.freshbooks.com /hub/accounting/operating-activities#:~:text=Operating%20activities%20are%20the%20core,net%20income%20of%20the%20business. Kenton, W. (2024b, August 1). Cash flow from investing Activities explained: Types and examples . Investopedia. https:// www.investopedia.com /terms/c/ cashflowfinvestingactivities.asp Sylvester, S. (2024, July 30). What are financing activities? LegalZoom. https:// www.legalzoom.com /articles/what-are-financing-activities Compliance Policies and Procedures: Examples & How To Enforce | Ansarada . (n.d.). Ansarada . https:// www.ansarada.com /business-readiness/legal/compliance-policies-procedures#:~:text=Conduct%20regular%20audits,and%20complexity%20of%20the%20policies. Walters, K. (2019, May 29). Top 5 ways to measure internal communication . Internet Connections. https:// intranetconnections.com /blog/5-way-to-measure-internal-communication/ How to assess risk . (2023, October 6). Business & Finance Solutions. https:// www.finance.ucla.edu /corporate-accounting/controls-and-accountability/control-practices/how-to-assess-risk#:~:text=Assess%20the%20likelihood%20(or%20frequency,decide%20what%20actions%20are%20necessary.

13. References- 10 tips for evaluating internal control deficiencies | AuditBoard . (n.d.). AuditBoard . https:// www.auditboard.com /blog/tips-evaluating-internal-control-deficiencies/ Universal CPA Review. (2021, January 26). How to test whether proper segregation of duties exist? - Universal CPA Review . https:// www.universalcpareview.com /ask-joey/how-to-test-whether-proper-segregation-of-duties-exist/#:~:text=The%20audit%20team%20should%20perform,system%20access%20they%20each%20have. Kenton, W. (2024, June 18). Internal Controls: Definition, types, and importance . Investopedia. https:// www.investopedia.com /terms/ i / internalcontrols.asp #:~:text=Error%20Code%3A%20100013)-,What%20Are%20Internal%20Controls%3F,and%20regulations%20and%20prevent%20fraud. Kenton, W. (2024b, June 18). Internal Controls: Definition, types, and importance . Investopedia. https:// www.investopedia.com /terms/ i / internalcontrols.asp #:~:text=Error%20Code%3A%20100013)-,What%20Are%20Internal%20Controls%3F,and%20regulations%20and%20prevent%20fraud.