Financial And Managerial Accounting Quotes

“window dressing —measures taken by management to
make the company appear as strong as possible in its financial statements.”
― Williams, Financial & Managerial Accounting

“A strong statement of financial position is one that shows relatively little debt and large
amounts of liquid assets relative to the liabilities due in the near future. A strong income statement is one that shows large revenues relative to the expenses required to earn the revenues.
A strong statement of cash flows is one that not only shows a strong cash balance but also
indicates that cash is being generated by operations. Demonstrating that these positive characteristics of the company are ongoing and can be seen in a series of financial statements is particularly helpful in creating confidence in the company on the part of investors and creditors.
Because of the importance of the financial statements, management may take steps that are
specifically intended to improve the company’s financial position and financial performance.
For example, cash purchases of assets may be delayed until the beginning of the next accounting period so that large amounts of cash will be included in the statement of financial position
and the statement of cash flows. On the other hand, if the company is in a particularly strong
cash position, liabilities due in the near future may be paid early, replaced with longer-term
liabilities, or even replaced by additional investments by owners to communicate that future
negative cash flows will not be as great as they might otherwise appear.”
― Williams, Financial & Managerial Accounting

“The relationship of current assets to current liabilities is called the current ratio.”
― Williams, Financial & Managerial Accounting

“current assets, denoting that they
either are cash or will soon become cash.”
― Williams, Financial & Managerial Accounting

“Transactions that did not affect cash are called noncash investing and”
― Williams, Financial & Managerial Accounting

“Cash flows from operating activities are the cash effects
of revenue and expense transactions that are included in the income statement.
4
Cash flows
from investing activities are the cash effects of purchasing and selling assets, such as land and
buildings. Cash flows from financing activities are the cash effects of the owners investing in
the company and creditors loaning money to the company and the repayment of either or both.”
― Williams, Financial & Managerial Accounting

“Expenses are decreases in the
company’s assets from its profit-directed activities, and they result in negative cash flows.”
― Williams, Financial & Managerial Accounting

“Revenues are increases in the company’s assets from its
profit-directed activities, and they result in positive cash flows.”
― Williams, Financial & Managerial Accounting

“The income statement is a summarization of the company’s revenue and expense transactions
for a period of time. The income statement is particularly important for the company’s owners, creditors, and other interested parties to understand.”
― Williams, Financial & Managerial Accounting

“The statement of cash flows shows
how the company’s cash increased and decreased during the period.”
― Williams, Financial & Managerial Accounting

“the income statement is a separate financial statement that shows how the statement of financial position
changed as a result of its revenue and expense transactions.”
― Williams, Financial & Managerial Accounting

“The statement of financial position , or balance sheet , is a financial statement that
describes where the enterprise stands at a specific date. It is sometimes described as a snapshot of the business in financial or dollar terms (that is, what the enterprise “looks like” at a
specific date).”
― Williams, Financial & Managerial Accounting

“introduce three primary financial statements:”
― Williams, Financial & Managerial Accounting

“In the United States, three organizations are particularly important in establishing accounting principles—the Securities and Exchange Commission (SEC), the Financial Accounting
Standards Board (FASB), and the International Accounting Standards Board (IASB).”
― Williams, Financial & Managerial Accounting

“The integrity of accounting information is enhanced in three primary ways. First, certain
institutional features add significantly to the integrity of accounting information. These
features include standards for the preparation of accounting information, an internal control structure, and audits of financial statements. Second, several professional accounting
organizations play unique roles in adding to the integrity of accounting information. Finally,
and perhaps most important, is the personal competence, judgment, and ethical behavior of
professional accountants. These three elements of the accounting profession come together to
ensure that users of accounting information—investors, creditors, managers, and others—can
rely on the information to be a fair representation of what it purports to represent.”
― Williams, Financial & Managerial Accounting

“CHARACTERISTICS OF MANAGEMENT
ACCOUNTING INFORMATION”
― Williams, Financial & Managerial Accounting

“Hewlett-Packard (HP) was founded by Bill Hewlett and
Dave Packard in 1939 in a garage. Over the years, HP
grew to be become a multinational information technology company, with revenues and assets of well
over $100 billion. HP has often grown in recent years
by acquiring other companies. Just as an individual is
making an investment when he or she buys shares of
stock, a corporation is”
― Williams, Financial & Managerial Accounting

“Dave Packard in 1939 in a garage. Over the years, HP
grew to be become a multinational information technology company, with revenues and assets of well
over $100 billion. HP has often grown in recent years
by acquiring other companies. Just as an individual is
making an investment when he or she buys shares of
stock, a corporation is making a much larger investment
when it buys an entire company. And, just as reliable
financial information is critical to individuals when making investment decisions, it is equally important when
one company is considering”
― Williams, Financial & Managerial Accounting

“communicate”
― Williams, Financial & Managerial Accounting