Financial Accounting Concepts - Essay Example

Only on StudentShare

Extract of sample
Financial Accounting Concepts

The intangible assets lumped in one account is also listed under the non-current assets. This account may represent the patents, trademarks, reputation, skilled management or well-trained labor force of the company. It should be noted that some accountants are averse to record this type of assets unless they can be promptly valued (Brealey, Myers & Marcus, 1995).
The liability section of the balance sheet, along with the shareholders' equity, shows the financial resources utilized for the procurement of assets (Brealey, Myers & Marcus, 1995). Similar to assets, liabilities are also classified into current and non-current liabilities, obligations which are due in the short-term and long-term, respectively.
Non-current liability accounts of WMT in the balance sheet include long-term debt and other non-current liabilities, which represent the WMT's loans from banks and investors which are not immediately due. Furthermore, deferred income tax is accounted for in the balance sheet. As the name suggests, this is the outstanding income tax due which will have to be paid to the government. This section also includes the account for minority interest which is the liability of the company to investors with non-controlling stake or interest over the company.
On WMT's balance sheet as at end-2004 shown in MSN Money, only the commo ...
Download paper


Current assets are composed of cash and equivalents such as marketable securities which are easily convertible to cash. The assets also include account receivables which are the unpaid bills owed to the company. In addition, there is also the inventory which in the case of WMT may represent the product stocks.
Author : brionna16

Related Essays

financial Accounting
One useful content is the report that the company was able to achieve a good set of results in the areas of sales, profits, and earnings per share growth. Another useful content is the increase of the company’s ROCE by 13 percent. The increase brings the company closer to achieving its 2014 benchmarks. Another useful content is restating the United Kingdom as the company’s outstanding core business (http:/ Some of the contents of the chief executive officer’s report are irrelevant. Stating that the company must focus on increasing sales is redundant. All companies...
8 pages (2008 words) Essay
Financial accounting Research Proposal
The end users of the financial statements can be customers, investors, suppliers, government agencies, student body, economist or general public.
11 pages (2761 words) Research Proposal
Financial and Management Accounting Essay
(Timmer, John. Accounting for the environment. September 27, 2006. Nobel Intent. Ars technical. [internet]). In a large measure, the environment has become so important a subject that even the art of accounting is now being made part in the quest for attaining worldwide ecological balance. As a matter of fact, disclosure of environmental issues and the duty to report the same is now a corporate task. (Hutchison, Paul D. Environmental Accounting: Issues, Reporting and Disclosure. page 37). This essay will thus be critically evaluating the statement that management accounting and financial...
11 pages (2761 words) Essay
The Generally Accepted Accounting Principles in the UK
The chief standard-setter is the Accounting Standards Board (ASB), which issues standards called Financial Reporting Standards (FRSs). The ASB is part of the Financial Reporting Council, an independent regulator funded by a levy on listed companies[1], and it replaced the Accounting Standards Committee (ASC), which was disbanded in 1990 following a number of criticisms of its work. To the extent that the ASC's pronouncements, known as Statements of Standard Accounting Practice (SSAPs), have not been replaced by FRSs, they remain in force. The ASB has a formal exposure process for proposed...
10 pages (2510 words) Essay
Financial accounting Master Essay
In order to look at how accounting theories impact practicing accountants today, this paper will give an extensive discussion of how the history of accounting thought evolved in order to form a conceptual framework that is currently utilized in the business world. Throughout history, the need of a single and unified conceptual framework which will embody the needs of business organization for financial reporting has been a pressing concern. The lack of established accounting theory to support the reporting of financial transactions and production of financial reports called for the foundation...
12 pages (3012 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!