[03-Sep-2026 22:42:32 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_ServiceTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/LogoutRedirect.php on line 21 [03-Sep-2026 22:42:33 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_SingletonTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/Core.php on line 20 [03-Sep-2026 22:42:33 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_ServiceTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/AdminMenu.php on line 18 [03-Sep-2026 22:42:33 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_ServiceTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/Metabox.php on line 18 [03-Sep-2026 22:42:33 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_ServiceTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/Welcome.php on line 18 [03-Sep-2026 22:42:33 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_ServiceTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/Shortcode.php on line 18 [03-Sep-2026 22:42:33 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_RequestTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/Uri.php on line 18 [03-Sep-2026 22:42:33 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_ServiceTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/NotFoundRedirect.php on line 18 [03-Sep-2026 22:42:33 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_ServiceTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/ExtendedCapabilities.php on line 22 [03-Sep-2026 22:42:33 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_RequestTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/Content.php on line 24 [03-Sep-2026 22:42:33 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_ServiceTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/Capability.php on line 18 [03-Sep-2026 22:42:33 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_ServiceTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/Jwt.php on line 19 [03-Sep-2026 22:42:33 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_ServiceTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/LoginRedirect.php on line 18 [03-Sep-2026 22:42:33 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_ServiceTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/Route.php on line 18 [03-Sep-2026 22:42:33 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_RequestTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/Toolbar.php on line 18 [03-Sep-2026 22:42:34 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_ServiceTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/UserLevelFilter.php on line 18 [03-Sep-2026 22:42:34 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_ServiceTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/AccessPolicy.php on line 20 [03-Sep-2026 22:42:34 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_RequestTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/Multisite.php on line 19 [03-Sep-2026 22:42:34 UTC] PHP 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/home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/Welcome.php on line 18 [21-Sep-2026 08:16:04 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_ServiceTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/LoginRedirect.php on line 18 [21-Sep-2026 08:16:05 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_ServiceTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/Capability.php on line 18 [21-Sep-2026 08:16:05 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_RequestTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/Toolbar.php on line 18 [21-Sep-2026 08:16:05 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_RequestTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/Content.php on line 24 [21-Sep-2026 08:16:05 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_ServiceTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/Route.php on line 18 [21-Sep-2026 08:16:06 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_ServiceTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/UserLevelFilter.php on line 18 [21-Sep-2026 08:16:06 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_RequestTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/Uri.php on line 18 [21-Sep-2026 08:16:06 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_ServiceTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/AccessPolicy.php on line 20 [21-Sep-2026 08:16:06 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_ServiceTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/LogoutRedirect.php on line 21 [21-Sep-2026 08:16:07 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_ServiceTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/AdminMenu.php on line 18 [21-Sep-2026 08:16:07 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_ServiceTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/Metabox.php on line 18 [21-Sep-2026 08:16:07 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_SingletonTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/Core.php on line 20 [21-Sep-2026 08:16:07 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_ServiceTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/DeniedRedirect.php on line 18 [21-Sep-2026 08:16:08 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_SingletonTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/Compatibility.php on line 21 [21-Sep-2026 08:16:08 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_RequestTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/Multisite.php on line 19 [21-Sep-2026 08:16:08 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_ServiceTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/Shortcode.php on line 18 [21-Sep-2026 08:16:08 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_ServiceTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/NotFoundRedirect.php on line 18 [21-Sep-2026 08:16:08 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_ServiceTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/Jwt.php on line 19 [21-Sep-2026 08:16:09 UTC] PHP Fatal error: Trait 'AAM_Core_Contract_ServiceTrait' not found in /home/ogedengbe/public_html/wp-content/plugins/advanced-access-manager/application/Service/ExtendedCapabilities.php on line 22 Economics – OGEDENGBE BLESSING & CO https://ogedengbeblessing.com Audit And Accounting Firm Sun, 22 Sep 2019 13:52:05 +0000 en-US hourly 1 https://ogedengbeblessing.com/wp-content/uploads/2019/09/favicon22.gif Economics – OGEDENGBE BLESSING & CO https://ogedengbeblessing.com 32 32 12 Things You Need to Know About Financial Statements https://ogedengbeblessing.com/2016/10/21/12-things-you-need-to-know-about-financial-statements/ https://ogedengbeblessing.com/2016/10/21/12-things-you-need-to-know-about-financial-statements/#respond Fri, 21 Oct 2016 03:50:44 +0000 https://bearsthemespremium.com/theme/consulta/?p=1883 1. Financial Statement = Scorecard

There are millions of individual investors worldwide, and while a large percentage of these investors have chosen mutual funds as the vehicle of choice for their investing activities, many others are also investing directly in stocks. Prudent investing practices dictate that we seek out quality companies with strong balance sheets, solid earnings, and positive cash flows.

Whether you’re a do-it-yourself or rely on guidance from an investment professional, learning certain fundamental financial statement analysis skills can be very useful. Almost 30 years ago, businessman Robert Follet wrote a book entitled “How To Keep Score In Business” (1987). His principal point was that in business you keep score with dollars, and the scorecard is a financial statement. He recognized that “a lot of people don’t understand keeping score in business. They get mixed up about profits, assets, cash flow and return on investment.”

The same thing could be said today about a large portion of the investing public, especially when it comes to identifying investment values in financial statements. But don’t let this intimidate you; it can be done. As Michael C. Thomsett says in “Mastering Fundamental Analysis” (1998):

“That there is no secret is the biggest secret of Wall Street and of any specialized industry. Very little in the financial world is so complex that you cannot grasp it. The fundamentals, as their name implies, are basic and relatively uncomplicated. The only factor complicating financial information is jargon, overly complex statistical analysis and complex formulas that don’t convey information any better than straight talk.”

2. Financial Statements to Use

The financial statements used in investment analysis are the balance sheet, the income statement, and the cash flow statement with additional analysis of a company’s shareholders’ equity and retained earnings. Although the income statement and the balance sheet typically receive the majority of the attention from investors and analysts, it’s important to include in your analysis the often overlooked cash flow statement.

3.What’s Behind the Numbers?

The numbers in a company’s financial statements reflect the company’s business; it’s products, services, and macro-fundamental events. These numbers and the financial ratios or indicators derived from them are easier to understand if you can visualize the underlying realities of the fundamentals driving the quantitative information. For example, before you start crunching numbers, it’s critical to develop an understanding of what the company does, its products and/or services, and the industry in which it operates.

4. Diversity of Reporting

Don’t expect financial statements to fit into a single mold. Many articles and books on financial statement analysis take a one-size-fits-all approach. Less-experienced investors might get lost when they encounter a presentation of accounts that falls outside the mainstream or a so-called “typical” company. Please remember that the diverse nature of business activities results in a diverse set of financial statement presentations. This is particularly true of the balance sheet; the income statement and cash flow statement are less susceptible to this phenomenon.

5.Understanding Financial Jargon

The lack of any appreciable standardization of financial reporting terminology complicates the understanding of many financial statement account entries. This circumstance can be confusing for the beginning investor. There’s little hope that things will change on this issue in the foreseeable future, but a good financial dictionary can help considerably.

6. Accounting: Art, Not Science

The presentation of a company’s financial position, as portrayed in its financial statements, is influenced by management’s estimates and judgments. In the best of circumstances, management is scrupulously honest and candid, while the outside auditors are demanding, strict and uncompromising. Whatever the case, the imprecision that can be inherently found in the accounting process means that the prudent investor should take an inquiring and skeptical approach toward financial statement analysis.

7. Key Accounting Conventions

Generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS) are used to prepare financial statements. Both methods are legal in the United States, although GAAP is most commonly used. The main difference between the two methods is that GAAP is more “rules-based,” while IFRS is more “principles-based.” Both have different ways of reporting asset values, depreciation, inventory, to name a few.

8. Non-Financial Information

Information on the state of the economy, the industry, competitive considerations, market forces, technological change, the quality of management and the workforce are not directly reflected in a company’s financial statements. Investors need to recognize that financial statement insights are but one piece, albeit an important one, of the larger investment puzzle.

9. Financial Ratios and Indicators

The absolute numbers in financial statements are of little value for investment analysis, which must transform these numbers into meaningful relationships to judge a company’s financial performance and gauge its financial health. The resulting ratios and indicators must be viewed over extended periods to spot trends. Please beware that evaluative financial metrics can differ significantly by industry, company size, and stage of development.

10. Notes to Financial Statements

The financial statement numbers don’t provide all of the disclosure required by regulatory authorities. Analysts and investors alike universally agree that a thorough understanding of the notes to financial statements is essential to properly evaluate a company’s financial condition and performance. As noted by auditors on financial statements “the accompanying notes are an integral part of these financial statements.” Please include a thorough review of the noted comments in your investment analysis.

11. The Annual Report/10-K

Prudent investors should only consider investing in companies with audited financial statements, which are a requirement for all publicly-traded companies. Perhaps even before digging into a company’s financials, an investor should look at the company’s annual report and the 10-K. Much of the annual report is based on the 10-K, but contains less information and is presented in a marketable document intended for an audience of shareholders. The 10-K is reported directly to the U.S. Securities And Exchange Commission or SEC and tends to contain more details than other reports.

Included in the annual report is the auditor’s report, which gives an auditor’s opinion on how the accounting principles have been applied. A “clean opinion” provides you with a green light to proceed. Qualifying remarks may be benign or serious; in the case of the latter, you may not want to proceed.

12. Consolidated Statements

Typically, the word “consolidated” appears in the title of a financial statement, as in a consolidated balance sheet. A consolidation of a parent company and its majority-owned (more than 50% ownership or “effective control”) subsidiaries means that the combined activities of separate legal entities are expressed as one economic unit. The presumption is that consolidation as one entity is more meaningful than separate statements for different entities.

]]> https://ogedengbeblessing.com/2016/10/21/12-things-you-need-to-know-about-financial-statements/feed/ 0 Major Problems Associated With a Sole Proprietorship https://ogedengbeblessing.com/2016/10/21/major-problems-associated-with-a-sole-proprietorship/ https://ogedengbeblessing.com/2016/10/21/major-problems-associated-with-a-sole-proprietorship/#respond Fri, 21 Oct 2016 03:37:01 +0000 https://bearsthemespremium.com/theme/consulta/?p=1864 A sole proprietorship is a type of business that has only one owner who is legally and financial bound to all of the business’s decisions and obligations. Although sole proprietorship are easily and cheaply set up, they suffer legal, efficiency and financial disadvantages that are not always present in other company forms, such as limited partnerships.

Defining Sole Proprietorships

In its simplest sense, a sole proprietorship is a type of business under the management of a single person. Many smaller businesses have this type of legal structure as it is the easiest to set up. Sole proprietorship start-ups do not have any legal requirements, and unlike other types of businesses, the owner and the business are not taxed separately. They have little in the way of start-up costs, and the owner is able to make all decisions.

Legal Disadvantages

One disadvantage of sole proprietorships is that the owner and the business are legally a single entity. Any legal issues that may affect the business — for example, a lawsuit — will also involve the owner of the business. The business’s costs are also the owner’s costs, and the business’s profits are the owner’s income. When a government taxes a sole proprietorship, it is the same as taxing the owner’s income.

Efficiency Disadvantages

Because the business and the owner are regarded as the same entity, the owner is responsible for all obligations that pertain to the business. If the business faces any financial or legal hurdles, the owner must devote as much time as he can to addressing such hurdles if he wants to keep his business alive. This can have a strain on the owner’s personal life. Furthermore, if the owner suffers any personal mishaps, such as disability, the business will suffer or even cease to exist. Sole proprietorships do not exist indefinitely like that of other company structures.

Financial and Business Disadvantages

Sole proprietorships may find it difficult to raise capital to expand. This is because sole proprietorships tend to be rather small and have a relatively low level of turnover. Investors are cautious of investing in sole proprietorships as a single owner and manager may entail increased risks. Furthermore, a single owner limits himself with his own training and experience. Any new ideas and ventures must come from himself, and without any input from other owners or managers that other businesses may have.

]]> https://ogedengbeblessing.com/2016/10/21/major-problems-associated-with-a-sole-proprietorship/feed/ 0 An Examination of the Competency Approach in Defining Entrepreneurs https://ogedengbeblessing.com/2016/08/23/an-examination-of-the-competency-approach-in-defining-entrepreneurs/ https://ogedengbeblessing.com/2016/08/23/an-examination-of-the-competency-approach-in-defining-entrepreneurs/#respond Tue, 23 Aug 2016 10:16:32 +0000 https://bearsthemespremium.com/theme/consulta/?p=259 Entrepreneurship is of critical importance to the modern economy. Researchers have studied entrepreneurship for decades. In recent years, significant relationship between entrepreneurial competencies and firm performance has been reported in empirical studies. Applying the competency approach, researchers have assumed that entrepreneurial competency differentiates entrepreneurs from non-entrepreneurs without empirically examining if this is the case. The research conducted under this thesis addresses this gap. Drawing upon a thorough literature review regarding the components, antecedents and performance outcomes of the entrepreneurial competency, we propose the following hypothesis: the entrepreneurs generally possess higher level of entrepreneurial competencies than the non-entrepreneurs, and the entrepreneurs and the non-entrepreneurs can be discriminated based on their entrepreneurial competency level. A survey is conducted among the business owners and the managers. Employing discriminant analysis, we find empirical evidence that the business owners generally possess higher level of entrepreneurial competencies than the managers, and the business owners and the managers can be discriminated based on their entrepreneurial competency level, which supports our hypothesis.

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