ACC303 Intermediate Accounting (just tuse reference)

According to the textbook, the income statement measures the success
of a company’s operations for a given period. The income statement is
important to investors and creditors, because it determines the
profitability, investment value, and creditworthiness of a company.
Specifically, the income statement helps investors and creditors
predict the amounts, timing, and uncertainty of future cash. Income
statement preparers can make such informed predictions by analyzing a
company’s financial statements, calculating the price-earnings ratio,
and reviewing notes to the financial statements on the income
statement. In order to complete this assignment, use the
Internet to research and review financial statements for Exxon and
Chevron for the years 2012 and 2013. Write a five to six (5-6) page paper in which you:
  1. Compare and contrast the limitations and usefulness of the single-step income statement and the multi-step income statement.
  2. Analyze
    the gross profit, operating profits, and net income of both Exxon and
    Chevron for 2012 and 2013. Of the two (2) companies, speculate on the
    main reasons why one (1) company may have been more profitable than the
    other company.
  3. Compute each company’s price-earnings (P / E)
    ratio and price-to-sales ratio (PSR). Identify primary estimates or
    assumptions that could result in overstated earnings, and use the ratio
    data to compare the quality of each company’s earnings.
  4. Review
    notes to both Exxon’s and Chevron’s financial statements. Next,
    identify at least two (2) notes pertaining to the income statement, and
    explain the main way in which the notes in question could influence
    your decision to invest in each of the companies. Provide a rationale
    to justify your decision.
  5. Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.
Your assignment must follow these formatting requirements:
  • Be
    typed, double spaced, using Times New Roman font (size 12), with
    one-inch margins on all sides; citations and references must follow APA
    or school-specific format. Check with your professor for any
    additional instructions.
  • Include a cover page containing the
    title of the assignment, the student’s name, the professor’s name, the
    course title, and the date. The cover page and the reference page are
    not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
  • Analyze
    the functions and the main sections of the four (4) primary financial
    accounting statements: the income statement, the statement of retained
    earnings, the balance sheet, and the statement of cash flows.
  • Prepare
    the main sections of the four (4) primary financial accounting
    statements: the income statement, the statement of retained earnings,
    the balance sheet, and the statement of cash flows.
  • Use technology and information resources to research issues in intermediate accounting
  • Write clearly and concisely about intermediate accounting using proper writing mechanics.
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