Accounting: Balance Sheet and Cash Equivalents Essay

Submitted By rjones01
Words: 779
Pages: 4

Disclosure Analysis Paper
Rhonda Barber
ACC 422
March 11, 2013
Axia College
Mary Derx-Robinson

To analyze the disclosure on a financial statement will require information from the balance sheet and fiscal reports to give the accountants information to make valuable account decisions. In today’s society the business world keeps growing in size and complication with improved formats for example the balance sheet has new and informative information that will help accountant decide with method to use to show the statistics and assets to stockholders and investors. This information will allow them to see the equity they will invest within the company.

The balance sheet goes more into detail and breaks down reports of finically related info which might not be conveyed in a statistical value, yet is vital nonetheless. The transactions on the balance sheet might be different and greater than the actual numbers themselves. Having numbers that appear on the balance sheet or fiscal report is only a value, however the method one gets that value or its possible use is of greater value to the user. The material of this document will assess the reports of any company’s cash equivalents, accounts receivables, and stock. The company that I’m employed at is called Multiview, Inc. and its cash flow and stock comes from building customers web sites to produce their products to members of thousands of different associations.

Multiview Inc. cash equivalent has been used by the accounting department to equivalent the cash flow short and long term gravity. The organization; however the might be deceptive if the balance sheets are not accurate. For that reason, an effort to explain the definition of equivalents is essential, that is “short-term, extremely liquid investments which are both easily changeable to known sums of cash, and so close to maturity that they offer little dangers of alternation in interest rates” according the book (Kieso, Weygandt, & Warfield, 2010). Knowing that the company has to maintain records and documents of the company’s assets, and showing what sales were made by the company and what products they were able to produce for their clients will show extremely liquid to be cash equivalents, for example: money market assets, certificates of deposits, commercial paper, and government agencies’ investments, or in this company’s case the investors Walberg out of New York City.

Multiview has a system that will catch false information on a balance sheet. The company has a group of accountants that double check the records of sales that were made on a daily tally record sheet, each day the number of sales that were made by the sale people is recorded on a record sheet and the transferred in the daily sales record in the computer. The data is stored so there are no activities misused and falsely put on the balance sheet of sales. Multiview does not only write off accounts unless the clients write us a letter and state they are not going to pay their balance. Before a client gets to this status the company tries to work out a payment plan depending on the clients’ relationship with Multiview like it takes a detailed look at a