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Review of Accounting Process and Financial Statements

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I need assistance with the following attach assignment. Thank you in advance.

Part I. Discuss each of the following terms. Your discussion should expand on the definition as given in the course terms. Explain why this concept is important to financial statements.

1. Generally Accepted Accounting Principles.
2. Double Entry Accounting.
3. Historical Cost.
4. Accrual Basis vs. Cash Basis Accounting.
5. Current Assets and Liabilities vs. Non-Current Items.

Part II. Refer to the following three sets of annual reports which contain the financial statements. You may find the financial data independent of the annual report for Google. (Make sure you use the latest financial statements -- for the year 2007, or later if available). First read an overview of the company so you are familiar with the company, its products/services and markets and then review the annual report and supplemental financial statements.

1. SAMSUNG (http://www.samsung.com/us/index.html)

http://www.samsung.com/us/aboutsamsung/ir/financialinformation/annualre port/IR_Annual2007.html
http://www.samsung.com/us/aboutsamsung/ir/financialinformation/annualre port/downloads/2007/10_SEC_07AR_E_FinancialStatement.pdf

2. Lockheed Martin (http://www.lockheedmartin.com/)

http://www.lockheedmartin.com/investor/general_information/annual_repor ts.html

http://phx.corporate-ir.net/phoenix.zhtml?c=83941&p=irol-contact

3. RTL Group (http://www.rtlgroup.com)

RTL Group Annual Report and Financials

http://www.rtlgroup.com/www/htm/annualreport.aspx

Locate the following on each of the statements:

The Balance Sheet

The Income Statement

The Statement of Cash Flows

Describe the general organization of each of the three sets of financial statements. Which is more useful in your opinion for each of the three companies: Net Income or Cash from Operating Activities?

Predict companies' future trends using Net Income or Cash Flows. Reach one additional conclusion about each company from the additional information you find in the annual report. Since several of these companies are conglomerates, discuss how you can find out relevant information about individual segments, such as the IDOLS segment of the RTL Group's Fremantle Media North America.

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Solution Summary

In about 800 words, including references, this solution clearly outlines several accounting terms which are central concepts in this field of business and does an overview of several companies, including Samsung, Lockheed Martin and RTL Group.

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Review of Accounting Process and Financial Statements

PART I

Generally accepted accounting principles are rules and procedures providing guidelines on how business transactions are recorded in the books of an entity and how such transactions are reported in the entity's financial statements. These rules and procedures are comprised of the statement of financial accounting standards promulgated by the Financial Accounting Standards Board in the United States and the International Accounting Standards for the international community; and guidelines from the Securities and Exchange Commission among others.

Double entry accounting, on the other hand, is a system that requires financial transactions will always be recorded with a debit and a credit. A debit increases assets and decreases liabilities and stockholders' equities while a credit decreases assets and increases liabilities and stockholders' equities.

Historical cost is a generally accepted accounting principle which requires that items specifically assets be recorded by the business entity at their original cost. Original cost is comprised of purchased price of the assets, legal fees to complete the transfer of the asset's title to the purchaser, necessary expenses to bring the assets to working conditions for its intended use, and ...

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