ACC/400 Week 5: E-text Learning Team Assignments

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Running head: E-TEXT TEAM ASSIGNMENTS1Week 5: E-text Learning Team AssignmentsACC/400

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E-TEXT TEAM ASSIGNMENTS2Week 5: E-text Learning Team AssignmentsFinancial Accounting: Tools for Business Decision Making,4theditionChapter 13: Communication Activity: BYP 13-7Write a memo to R.J. Falk that explains the basis for comparison and the factorsaffecting quality of earnings.MemoTo:R.J. Falk CEOFrom:Team BDate:May 24, 2010Re:Financial Statement AnalysisThe purpose of this memo is toexplain (a) the bases for comparison in analyzing Venturafinancial statements and (b) the limitations, if any, in financial statement analysis.The financialstatement holds pertinent information about the company, such as the financial status of thecompany and changes, if any, which should be made. These statements are important to investorsand stockholders and therefore compliance of accounting rules is not only ethical but alsoimportant for the future of the business.The company’s prepared financial statement is a comprehensive overview of the business’journal entries; it includes the informationfrom the cash flow statement, income statement, andbalance sheet. Each month entries are madeof financialactivity; the journal entries arecollectedtoprepare the balance sheet. The balance sheet is an importantdocument, which aids in thecompany financial accounting.The balance sheet contains all the company’s assets and

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