Grantham University Accounting Standards Board Discussion

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Business Finance

Grantham University

Question Description

I'm working on a accounting discussion question and need an explanation and answer to help me learn.

Assume that you recently accepted an accounting position with Target Corporation. As one of your first duties, you have been assigned the responsibility of evaluating the financial statements and making a presentation to department leaders.

Use the following link to download Target’s most current annual report. Review the financial statements and answer the following questions:

  1. Explain why a set of financial      statements (income statement, statement of owner's equity, and balance      sheet) are useful in evaluating the company’s performance and future      planning.
  2. Explain what consolidated      financial statements are and the additional information they provide.
  3. In terms of revenues, how many      sources of revenue does Target have? Describe how they handle merchandise      sales.
  4. Compute the current ratio for      each of the last three years. Discuss if the current ratio improved,      worsened, or held steady. Explain the significance of the changes and what      the current ratio means.

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Explanation & Answer

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Surname: 1
Student’s Name
Financial Statements

An organization’s financial statements contain information that forms the basis of
corporate accounting. Investors, managers, as well as lenders assess the organization’s financial
position by reviewing data on such statements. The income statement and balance sheet provide
data used to compute financial ratios that give an image of the financial performance of the
company, as well as possible problems that migh...

GnoolX (17864)
Boston College

Awesome! Perfect study aid.


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