what are the problems of relying on accounting ratios?
87029
By nature, accounting is based on historical information.  I'd say the biggest problem with relying on any accounting information is that it gives you only what has happened, but doesn't take into account any non-quantifiable or forward looking factors in your business environment.
332879
payroll is an accounting liability
696125
Well, something is wrong.  \n\nIn accounting, when you debit something, you also credit something else. \n\nThis means one of a few things:\n\n1) The book is wrong, which is unlikely but not unheard of as there is always errata in every publication.\n\n2) There are some assumptions that you did not record.  For example, you made a profit and need to carry over the retained earnings to owners equity. This is probably the most likely thing as problems generally try to test your comprehension and ability to reason. \n\n3) You overlooked something.
26697
If I understand your question right, then the relevance is that a computer can do a huge amount of complicated accounting work with no errors. Which is a big plus over humans doing that work.
395669
The satement of financial position is the same as the balance sheet. In it, you list your assets, liabilities and equity with their corresponding values.  Ask your accountant for specifics.
1085711
Accounts & Tutions will be good. You have to try for the same.  You can try with auditors for accounts and go through news papers for tutions.
1107741
There have been problems and if it's an issue in your area you'll, no doubt, get the literature through your door very soon.\n\nThe biggest problem with it, though, is the mindbogglingly ludicrous proposal to take millions of pounds worth of public assets, property which belongs to you and me, and just give it away to a private company. \n\nWhenever I hear about people voting to transfer stock I get a mental picture of someone standing in front of a wall watching it fall on top of them. It's like the scale of the issue is too much to comprehend and although you can see it, nothing in your life has prepared you to cope with the concept so your subconscious won't allow you to really believe it's really happening and makes you ignore it. Another analogy is the rabbit caught in the beam of headlights.
51282
Accounting tends to be one of those subjects that you either get it or your don't.  The best advice is to keep practicing the t-table exercises until you find that "A-HA!" threshold.\n\nHere are some basics.\n\nIncome Statement\nNet Sales\n - Cost of goods sold\n   (Labor, Materials, Overhead, Delivery, etc.)\n= Gross Margin\n - Selling, General & Administrative expenses\n= Operating Profit\n - Interest\n= Profit before taxes\n\n\n\nBalance Sheet\nAssets\n Cash\n Investments\n A/R\n Inventories\n PP&E\n\nLiabilities\n A/P\n Long-term debt\n Other liabilities\n Reserves\n\nShareholder's equity\n Common stock\n Retained earnings
1079790
There is no difference in the US in accounting methods for publicly traded companies. They must all conform to GAAP\n(Generally Accepted Accounting Principles)
271653
try this site to get help in accounting\n\nhttp://www.futureaccountant.com/
105970
Accounting mistakes can be very costly for a business or firm, potentially leading to legal troubles or financial loss. Accountants are paid to not make mistakes.
524431
Otherwise your business cannot grow and you will make a loss!\n\nProfits are good!\n\nLosses are bad!
654497
Generally, if there is negative equity, reports will give N/A (not applicable).  The same goes for PE ratios when earnings are negataive.
142996
This site has a wonderful explanation on the designing of accounting system in an organisation. Please be patient enough to read through. http://www.futureaccountant.com/accounting-process/study-notes/\n\n\nhttp://www.futureaccountant.com/\nhttp://www.schoolingkids.com
507191
I was an accounting major.  I used the website assocatied with my text book.  Look in the front or back and see if there is a website.  what type of accounting problem is it, I might be able to help, although its been a few years.  IN the real world of accounting, you don't use alot of what we had to learn in school, so some of the things I had to learn the company does not use, so I may have forgotten it, but I still have my text books.
1104164
Some companies have ethnical standards and some don't. Every business needs an accountant and I really don't know how they can do bad things. Unless they are force to make up some numbers to overstate their profits and earnings, then the only person we can blame is the person who made that order. Accountants primary duties is to calculate numbers and put in data.
186492
You are exactly right in your concerns. \n\nThe quality of data on the web and even the quality available to brokerages is TERRIBLE. The primary problem is NOT the daily pricing, but rather the handling of dividends, splits, mergers, and other corporate actions that impact total return (what you actually make on a share).\n\nI personally make a living taking the standard data provided by the exchanges and then fixing and cleaning it for use by people like yourself.\n\nNevertheless, my services also come with a standard disclaimer which I deeply regret having to use because of potential liability. \n\nThe three companies that take data quality seriously are Investors FastTrack, Morningstar, and Lipper. I would encourage you to use these services in making sensible long-term investment decisions.