BUS103 Financial Accounting : The Consolidated Balance Sheet

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BUS103 Financial Accounting

Questions:

Answer the following questions in a form of a short answer/essay format. The response to the questions should strictly come from the case study, no research is needed besides analyzing the case to come up with answers:

Please refer to the annual report of Adecco Group for the fiscal year of 2019 and answer the following questions:

1. Overview of financial statements

• According to what accounting norms are the financial statements of Adecco prepared?

• What four financial statements do companies typically prepare for external reporting purposes?

What name does Adecco use for each of these statements?

• What does “consolidated” mean?

2. Auditors

• What accounting firm issued Adecco audit opinion (i.e., what accounting firm is Adecco’ external auditor)?

• Briefly state in your own words what Adecco’ audit opinion means. That is, use everyday language to explain how a reader of Adecco’ financial

statements should interpret what the audit opinion

3. Consolidated Statement of Operations (i.e., Income Statement).

• Consider the statement found page 106. Which of the following types of accounts would you expect to find on an income statement: assets,  liabilities, shareholders’ equity, revenues, expenses, gains, and losses?

• Is there an unusual item on the statement in 2017?

4. Consolidated Balance Sheet and Statement of Changes in Shareholders’ equity.

• Consider the statement found on page 105. Which of the following types of accounts would you expect to find on a balance sheet: assets, liabilities, shareholders’ equity, revenues, expenses, gains, and losses?

• What was the total shareholders’ equity at the end of 2018 and 2019? Can you find a reconciliation of the two numbers (i.e., can you find a place that explains how you went from one number to the other)?

• What were the retained earnings at the end of 2018 and 2019? Can you find a reconciliation of the two numbers (i.e., can you find a place that explains how you went from one number to the other)? Explain how the balance went from the beginning balance to ending

5. Consolidated Statement of Cash Flows. Consider the statement found on pages 108 and 109.

• What are the three major sections of Adecco cash flow statement?

• How much cash did Adecco generate from operating activities during fiscal year 2019? Was this amount more or less than the amount of operating income the company generated?

BUS103 Financial Accounting

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