Financial Accounting

Financial Accounting

July 30, 2014

Abstract

Purpose -This paper seeks to discuss the financial accounting in current liabilities and statement of cash flows and financial statement analysis such as findings – the paper finds, Current liabilities (past, present a future effect), sort-term versus long-term liabilities, trade accounts payable example of Apple Inc. (iTunes gift cart), financial statement analysis, statement of cash flow, Federer Sports Apparel and how important for investors to know about balance sheet and discontinued operation plays an important role in their future decision to make predictions of future earnings.

Originality/value – The paper promotes the advantages of net income for inventors and also types of liabilities –it is ability to pay currently maturing debt and the investors enthusiastic about growth potential, and also ratio analysis that help in evaluating the risk and profit of companies.

Keywords: liabilities, cash flow, discontinued operation, financial statement analysis

Current liabilities

In a balance sheet liabilities organized as either current or long term. A liability is a present responsibility to sacrifices assets in the future due to transaction that happened in the past.

Liabilities have three fundamental characteristics: (1) expected future sacrifices of economic benefit, (2) from present responsibility to other entities (3) resulting from past events. Current liabilities are payable within one year, and long-term liabilities are payable more than one year deadline.

When a company borrows money, it pays the lender interest in return for using the lender’s money during term of the loan.

There is on informal agreement which is line of credit and it means permits a company to borrow up to prearranged limit without following formal loan procedures and paperwork. Notes payable is recorded that...