Sometimes in our daily lives we cant avoid certain circumstance where we short on cash while at the same time you need to work on the problem fast. And that needs cash! Perhaps you have late credit cards payments, overdue bills, to pay your medical bills, or any other emergency and unexpected expenses, that you can cover right now, due to the short of money you have. The most reasonable solution would be to lend it from your friends or families, hoping that they have the mercy to lend you some bucks. But what if it doesnt works out either? While you need money and you need it fast!
October 2008 Archive
The Analysis of Profitability
The financial analysis of an organization is of interest to parties that intend to make decisions about associating with that organization in some way, whether to invest in it,work for it, recommend it, or any other possibility. In general, one wants to be associated with successful (rather than otherwise) organizations. For a company, success has many dimensions. Practically everything a for-profit company does can be seen as a financing (more…)
Unrealized Gains and Losses on Available-for-Sale Securities
Companies that own investments in marketable securities (bonds and stocks) will see the market values of their investments increase and/or decrease over time. If that investment is classified as available for sale (meaning that the company does not intend to sell but could if necessary, as contrasted with trading investments not intended to be held a long time), then the investment must be included in the balance sheet at its market value. If that market value is greater than the cost of the investment, there is an unrealized holding gain. But the (more…)
Requirement
The FASB requires companies to report comprehensive income, either in a separate financial statement (as Dow Chemical Company does, shown in Exhibit 2.3) or as part of the stockholders equity statement. The definition of comprehensive income given earlier relates it to the change in equity during a period, but it is also described as the change in wealth during a period.Wealth can increase not only from business operations but also from changes in market values that are not related to operations.The goal of the requirement to report (more…)
Comprehensive Income
The definition of comprehensive income is the change in equity of a business enterprise during a period from transactions and other events and circumstances from nonowner sources. It includes all changes in equity during a period except those resulting form investments by owners and distribution to owners. (Statement of Financial Accounting
Concepts No. 6) (more…)
