Financial analysis and SOX   Term Paper ID:42320 Click to get this paper

Essay Subject: This paper discribes describe the three main reports that are part of financial accounting ...... More...

4 Pages / 900 Words 5 sources, 5 Citations, MLA Format $16.00 Return to List of Papers

Paper Abstract: This paper discribes describe the three main reports that are part of financial accounting. The paper also examines this issue: In what ways does the Sarbanes-Oxley Act improve the validity of the information provided by a firm’s accounting system? Paper Introduction: The Financial Statements The basic three financial reports that are part of financialaccounting are the Balance Sheet Income Statement and Statement of CashFlows According to an essay written by Michael Dennis and published onlineon the Encyclopedia of Credit website a Balance Sheet presents informationabout a company\'s assets liabilities and equity A Balance Sheet willnormally divide assets into current assets and noncurrent or fixed assets Current assets are those assets which will be converted to cash within thenext months Fixed and non-current assets Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. ReferencesDennis, Michael. More significant penalties for committing accounting fraud, as well as penalties for blocking an official investigation or misleading auditors . Ethical guidelines that senior executives and members of the Board of Directors must obey . "Statement of Cash Flows." Encyclopedia of Credit. "Income Statement." Encyclopedia of Credit. Stricter regulation and control by means of audit committees and increased responsibility for public accounting firms . The SOX Act was signed into law on July 3 , 2 2 but even before itbecame law companies were examining their new responsibilities under thislegislation. Therefore, equity can be either negative or positive. 2 8. Non-currentliabilities are those obligations that will not come to in coming year.The third part of a Balance Sheet is equity. 16 Nov 2 8 .Foster, Constance. The report describes in theCompany's ability to generate a profit on sales. The Financial Statements The basic three financial reports that are part of financialaccounting are the Balance Sheet, Income Statement, and Statement of CashFlows. In contrast to the balancesheet which typically provides information using the accrual method ofaccounting, the Statement of Cash Flows provides information about cashinflows and outflows during the accounting period under review (Dennis).We must consider whether Sarbanes Oxley improves the validity ofinformation reported by publicly traded companies. 2 8. Constance Foster inBusiness Insurance writes that the goals of SOX include reducing theincidents of improper behavior; improving internal controls; improvingcompliance with SEC regulations; and ensuring that public companiesstrictly adhere to Generally Accepted Accounting Principles (Foster 24). "Tips for the Sarbanes-Oxley learning curve: the act has brought more complexity to firm management; here's some broad-based help." Business Insurance 21 June 2 4: 24. 2 8. CMA Business Credit Services. Liabilities are debts. CMA Business Credit Services. 16 Nov 2 8 .Dennis, Michael. A Balance Sheet willnormally divide assets into current assets, and noncurrent or fixed assets. A detailed explanation of what constitutes a conflict of interest between the company and one or more of its officers and directors . Currentliabilities or obligations or debts due within a year. In addition, SOX amends or supplementexisting legislation dealing with security regulations. "Balance Sheet." Encyclopedia of Credit. According to a third essay published online on Encyclopedia of creditwritten by Michael Dennis, a Statement of Cash Flows reports that companiescash inflows and cash outflows in areas classified as operating activities,financing activities, and investing activities. The time period coveredby an Income Statement is typically either a calendar quarter or a fiscalyear (Dennis). Equitywould be negative when liabilities exceed assets, and positive when askedthe value of assets exceeds liabilities (Dennis). encyclopediaofcredit.com/WebHelp/financial_analysis/balance_sheet.htm>.Dennis, Michael. A requirement that disclosures mandated by the SEC be made more quickly that was previously required, and that they include more detailed information . Fixed and non-current assets are not ordinarily sold by abusiness entity. It represents assets minusliabilities. I believe it does.Penalties for financial fraud have expanded dramatically under The Sarbanes-Oxley Act, often referred to by the acronym SOX. "Sarbanes-Oxley rules helping restore confidence." Journal of Accountancy 197.6 (2 4): 36.McCarthy, Ed. SOX mandates: . According to another essay by Michael Dennis published by theEncyclopedia of Credit, and Income Statement shows if a company has made orlost money in a specific period of time. SOXdictates that penalties for fraudulent accounting will apply tocorporations, their officers, and in some cases to the corporation'sindependent CPA auditing firm. According to an essay written by Michael Dennis and published onlineon the Encyclopedia of Credit website, a Balance Sheet presents informationabout a company's assets, liabilities, and equity. Equity can be thought of asthe residual amount on the Balance Sheet. SOX gives the federal courts authority to impose civil monetary penalties as well as jail sentences for individuals convicted of accounting fraud (McCarthy 36) In my opinion, each of these safeguards improves the validity of theinformation provided by the firms internal account system or systems. On the Balance Sheet, debts aresubdivided into current liabilities and non-current liabilities. If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.