Deciding on the Investment in the Stocks of Two Different Companies

📄 Words:	1215
📝 Subject:	Accounting
📑 Pages:	4
✍️ Type:	Essay

When I was doing high school, my father has been a regular investor in the stocks of various companies. In this connection, he used to receive the annual reports from many companies. I used to scan the annual reports with the intent to understand the information presented therein and I used to ask many questions on the information contained in the annual reports of companies to my father. My father also was used to having long discussions with his friend on his investments and during several such meetings; I used to be present.

During one such meeting, he expressed his difficulty to his friend in deciding on the investment in the stocks of two different companies. I could understand his problem and offered my suggestion of investing in the stocks of a particular company and I explained the reason as to why I consider the stocks of that company is worth investing in as compared to the other one. My father appreciated my explanation and followed my decision to witness an increase in the value of the stock in which he invested following my suggestion.

From this incident, I realized my flair for finance and accounting and developed the interest to pursue my higher education in the field of finance and accounting. Finance and accounting, as a subject having close association with everyday practical life, I was fascinated with the subject and this fascination enabled me to enhance my knowledge. It is true that when one does anything with involvement, he is sure to excel in doing that particular thing. I experienced this with my interest and involvement in my studies while I pursued the finance and accounting course.

In several other instances, I have attempted to study the accounting statements of different companies and develop my knowledge on the subject. With the present developments in the field, in the form of universal accounting standards requiring uniform disclosures, I am sure the studies will provide me with more scope for learning. With the changes brought in by the advancements in information and communication technology, the preparation and presentation of financial statements and allied works have become more and more interesting. With the help of the Internet, it has become possible to review the financial performance of companies functioning in different geographical locations.

As with many other professions, it is evident that the accounting profession requires a broad set of competencies and skills. Such competencies and skills include cognitive and non-cognitive attributes and behaviors. The importance of such skills is reflected in several accounting professional examinations. Cases and simulations are two tools, which have gained popularity in accounting education. Although cases and simulations are stated to help achieve the learning objectives, most of the time, they do not provide enough guidance on starting and completing the particular assignments. This calls for a special flair and interest in the subject, which I am confident I possess to make the studies easier. This personal attribute has enabled me to have a deep understanding of the subject and present a quality performance.

With the interest developed in the subject, I aspire to reach responsible and senior positions in investment banks and other financial institutions in the future, which are most likely to satisfy my quest for advancing my skill and knowledge in the subject.

Competency Worksheet for ACCT 351 Intermediate Financial Accounting 1.

Course learning outcomes

Learning statements

Origin of learning

Supporting documentation

Be familiar with the environment of and conceptual framework for financial reporting.

Be familiar with accounting information-processing systems.

Apply present value concepts in accounting.

Prepare the four basic financial statements – the statement of income, the cash flow statement, the retained earnings statement, and the balance sheet, including presentation and disclosure issues.

Evaluation of a reporting entity- knowledge of:
(a) Economic activities of an entity are being conducted, have been conducted or will be conducted;
(b) Those economic activities can be objectively distinguished from
those of other entities and from the economic environment in
which the entity exists
(c) Financial information about the economic activities of that entity has the potential to be useful in making decisions about providing resources to the entity and in assessing whether the management
in addition, the governing boards have made efficient and effective use of the resources provided.Manipulation of computer-based information systems such as territory wise sales data to transform data resources into a variety of information products (e.g. Regional sales data or customer wise sales data) for consumer and business professionals

Input and process data resources into information system and control system performance using various accounting processing systems (such as sales accounting).

For designing the accounting system, there was the need for knowledge on the following aspects
a) Details of how the business operates
b) Type of revenue and expenses of the organization
c) the inputs and reporting requirements of the system
Prepare Income statement to disclose information about revenues and expenses of regular business operations This forms the basis for ascertaining whether the company is being run profitably

Create balance sheet which includes the asset side (such as cash, inventory and property) and the liabilities side (accounts payable and long term debt) in order to assess the net worth of the company as against its equity holdings

Generate cash flow statement to outline the cash and cash equivalents entering and leaving the company so that the company can manage its cash flow effectively

Create a retained earnings statement to show net earnings not paid out as dividends, but retained by the company to be reinvested or to pay debt to inform the investors about the relative financial position of the company.

Study of annual reports and financial statements of different companies

Designed and implemented “Travelbase” accounting system at Uniglobe Voyages Lexus using DOS applications

Study of annual reports and financial statements of different companies

See Support Document A: Analysis, interpretation and preparation of financial statements for MMMuffins coffee franchise

See Support Document B: Example of Employee Timecard using ADP Payroll Information System

See Support Document E, F and G: Income statement, balance sheet and cash flow statement from MMMuffins – November 1999

Competency Worksheet for ACCT 352 Intermediate Financial Accounting II.

Course learning outcomes	Learning statements	Origin of learning	Supporting documentation
Be familiar with accounting issues associated with the equity side of the Balance Sheet (liabilities and shareholders’ equity). This includes both procedural and conceptual issues, as well as consideration of matters related to presentation and disclosure. Be familiar with accounting for income taxes, employee future benefits, leases, and financial statement analysis.	Create balance sheet which includes the equity side (such as current liabilities, accounts payable long term debts and equity) in order to assess the short-term liquidity and the debt to equity position of the company as against its equity holdings to help in the decision-making by the investors and lenders Create notes to the annual accounts which include explanations on various items of income and expenses including taxation, leases and other major revenue and capital items	Study of annual reports and financial statements of different companies Study of annual reports and financial statements of different companies	See Support Document E, F and G: Income statement, balance sheet and cash flow statement from MMMuffins – November 1999 See Support Document E, F and G: Income statement, balance sheet and cash flow statement from MMMuffins – November 1999

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