Accounting Project Details
You are applying for a job—your dream job, in fact. It’s a position where you will be offered an amazing salary, benefits, and minimum of a 5 year contract where the company hopes you will advance and eventually become management (they are devoted to creating their own talent pipeline.) So far, the company liked your resume, and someone from HR interviewed you over the phone. It is looking good!
However, because the company wants proficient business men and women working for them, they want even entry level employees to have a grasp on some basic accounting concepts because it makes employees much better management having that knowledge. They have asked you to use real world data to present some sort of accounting ratio to them.
The person in HR told you that if you make it past this part of the interview process, then the only next step left will be to negotiate your salary and sign your contract. You’re so close you can taste it!
Below are the points that you need to hit and be aware of for the writing.
You will pick from and present a LIQUIDITY RATIO.( i.e Current Ratio, Working Capital etc.) For any company of your choice.
LIQUIDITY RATIO; It measure the short-term ability of the company to pay its maturing obligations and to meet unexpected needs for cash. Short-term creditors such as bankers and suppliers are particularly interested in assessing liquidity.
Use the template below for the writing;
Present the ratio and its equation.
What type of ratio it is?
What does it tell financial statement users?
Why is it important to the user of financial statements?
Find the financial statements of a company and use that information with your ratio. You MUST include the financial statements when you submit the write up. Find the financial statements of 1 company and use that information with your ratio. You can find a company’s financial statements by:
Going onto the SEC’s Edgar system and looking up the company’s 10-k form.
Searching, “company name financial statements.” Any company that is publicly traded is required to have the latest copy of their financial statements on their website.
