Key Financial Areas - ABB

Question :

In order to meet the requirement of this assessment, following questions are given below:

• Explain the cask balance of the company for the recent year and compare it with the previous year.
• Give calculation for the receivable turnover and compare it with the industry average.
• Explain how the company analyse the allowance for the doubtful accounts and does it increase over the past year.
• Define the inventory methods with the ratio for the recent years and make comparison with the given industry.
• Define the long-lied assets and its comparison with industry.
• Explain the investment and the connected factors.

INTRODUCTION

Financial accounting is terminology for gathering information related to financial transactions, and events and recording them in a systematic manner according to accounting standards. This report outlines the key financial areas of the ABB organisation. There is a discussion made on cash receivables and inventories for the current year. Calculations of Long term assets and impairment are analyzed in this report. Investments analysis regarding reporting and securities or trading are analysed with market change and holding gains.