Wk 5 Final Paper

timer Asked: Jun 30th, 2018
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Question description

Select one of the major topics listed below using course topics previously referenced as the basis for the paper.

1)Discuss both internal and external users of the financial statements. Explain how external stakeholders use financial information such as company income statements and balance sheets to make decisions about the company in terms of granting loans and buying stock in the company. Discuss how common financial ratios and investment analysis is used to conduct due diligence by external parties and how factors such as accounts receivables, accounts payables, earnings returns, returns on inventory, etc. are applied to evaluate a firm’s financial and business health.


2)Discuss depreciation as a tool for managing and evaluating the life and utility of assets of the firm. What are the methods and under what conditions would each method be used and applied? Does a firm’s tax planning influence the decision? How do external stakeholders assess the validity of depreciation schemes?

Your paper must

  • Identify the main issues in the chosen area and accurately respond to each of the questions from the chosen area.
  • Build upon class activities by referencing new learning that has occurred.
  • Present specific current and/or future applications and relevance to the typical workplace.

Guidelines for writing the Final Paper are as follows:

  • Must be seven to ten double-spaced pages in length (exclusive of Appendix, References, Exhibits, etc.) and formatted according to APA style as outlined in the Ashford Writing Center.
  • Must include a separate title page with the following:
  • Title of paper
  • Student’s name
  • Course name and number
  • Instructor’s name
  • Date submitted
  • Must include an introductory paragraph with a succinct thesis statement.
  • Must address the topic of the paper with critical thought.
  • Must conclude with a restatement of the thesis and a conclusion paragraph.
  • Must use at least three other appropriately documented, related articles drawn from the University’s library (excluding your textbook).
  • The Scholarly, Peer Reviewed, and Other Credible Sources table offers additional guidance on appropriate source types. If you have questions about whether a specific source is appropriate for this assignment, please contact your instructor. Your instructor has the final say about the appropriateness of a specific source for a particular assignment.
  • Must document all sources in APA style as outlined in the Ashford Writing Center.
  • Must include a separate references page that is formatted according to APA style as outlined in the Ashford Writing Center.

Gordon, E. A., Ready, J. S., & Sannella, A. J. (2016). Intermediate accounting. Boston, MA: Pearson. Pearson.Pearson. (2016)

Tutor Answer

School: University of Maryland



Financial Statements
Student’s Name




Financial statements
I will focus on the importance of financial statements for the external stakeholders. The
internal users of financial statement are managers and there make use of accounting information
in making decisions that will help the company in achieving its goals. Besides, I will outline in
details the different tools that are available for management to analyze and evaluate the progress
of a firm. The tools used include:

Ratio analysis: is a quantitative examination of data contained in an organization's
financial statements. It is utilized to assess different parts of an organization's working
and financial execution, for example, its productivity, liquidity, benefit, and solvency.


Horizontal analysis: is a financial statement analyses system that shows changes in the
measures of comparing financial articulation items over some undefined time frame. It is
a helpful instrument to assess the trend circumstances.


Vertical analysis: it is used to demonstrate the relative sizes of the distinctive records on a
financial statement. For instance, when a vertical analysis is done on a wage articulation,
it will describe the best line sales number as 100%, and other records will appear as a
level of the aggregate sales figure.

The external financing reporting is essential especially the following stakeholders:
Investors and lenders depend on financial accounting to acquire necessary data about the
financial stability and dangers of organizations. The critical benefit of financial accounting and
the advantage the Financial Accounting Standards Board is to access information efficiently. The
standard loan specialist or financial analyst does not have to keep accessing everyday operations



of an organization. Instead, it depends on financial accounting to give accurate and promptly
similar data. Financial accounting permits outside actors to watch the productivity and estimation
of a business. A financial specialist can see which organizations have reliably performed well,
paid profits and have positive margins. A loan specialist can audit the financial records to
evaluate liquidity, income, use and general solvency.
Creditors are keen on the organization's capacity to pay commitments when they become
due. The organization's liquidity particularly inspires them in its ability to pay the short-term
loan. Terms of credit are set by lenders as indicated by the appraisal...

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Outstanding Job!!!!

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