Communications Infrastructure - Personal Statement Example

In case the ISP or the power supply is down, teams will meet on campus instead. Q3. The last time I tested my backup plans was one week back since I usually do the backup weekly.Q4. I could use financial ratios such as liquidity ratios, profitability ratios, solvency ratios, and capital gearing ratios (Wood, 1993). In this way, firms of different sizes could be compared on an equal footing. For example, the COGS of firm A may be greater than that of firm B. But its sales may be higher too.Q5. I would calculate the financial ratios of the firms to be compared over the three years to be compared.Q6. The dates on financial statements are important because they indicate the period in which profits or losses accrue and cash flows occur, as well as the financial status of the company as at a date.Q7. The income statement presents the incomes or revenues and expenses or costs of the firm incurred during a period, regardless of paid or not, to arrive at the profit or loss.

On the other hand, the cash flow statement of the firm presents the revenues or costs received or paid during a period, regardless of incurred or not, to arrive at the cash outflow or cash inflow. The balance sheet captures the financial snapshot of the firm at a particular point in time. The profit or loss on the income statement enters the retained earnings account, which is under shareholder's equity in the balance sheet. The cash inflow or cash outflow from the cash flow statement is added to or subtracted from the beginning cash balance to arrive at the ending cash balance, which is under current assets in the balance sheet.Q5. Accounting information is used by many stakeholders of a firm, including shareholders, creditors, managers, and the government for various purposes such as investing, borrowing, decision-making, and compliance.

Accounting is the "language of business" because accounting provides a common set of information used and understood by all stakeholders (Introduction to Accounting, n.d.).Q7. Generally Accepted Accounting Principles (GAAP) are "rules, guidance, and concepts for accounting practices and the content of financial statements. [] GAAP covers the recognition, measurement, reporting, and disclosure of accounting items. [] U.S. GAAP derives from the Statements of Financial Accounting Standards of the Financial Accounting Standards Board, and the pronouncements and interpretations of professional bodies like the American Institute of Certified Public Accountants, as well as from law, industry practice, and academic literature.

" (O'Regan, 2004) The American Institute of Certified Public Accountants (AICPA) designated the Federal Accounting Standards Advisory Board (FASAB) to develop and issue GAAP (Generally Accepted Accounting Principles, n.d.). The purpose of GAAP is to provide a set of accounting and reporting guidance so that there is consistency in the financial statements prepared by firms for which GAAP is applicable. Q7a. Adjusting entries are necessary because the revenues received and the expenses paid might not necessarily have been incurred.

On the other hand, revenues and expenses incurred might not necessarily have been received or paid. Q9. The first step is to identify revenues and expenses incurred but not received or paid and accrue for them. The second step is to identify revenues received and expenses paid but not incurred and charge them to the prepaid expense or deferred revenue accounts.Q15. The purpose of closing entries for the expense and revenue accounts is to transfer the expenses and revenues incurred for the period to the profit and loss account.

The purpose of closing entries for the asset and liability accounts is to calculate the balance of such accounts as at the closing date.Q16. The purpose of the post-closing trial balance is to check that all items recorded in all the accounts on the debit side should equal in total all the items recorded on the credit side of the accounts (Woods, 1993). The information for the post-closing trial balance comes from the closing balances in the books.PART McDonald's was established in 1965 (The McDonald's History - 1965 to 1973, n.d.) and Burger King was established in 1971 (Company Info, n.d.).