Week 5 Learning Team Assignment Shelly Evans, ACC 400 Resources: Financial Accounting: Tools for Business Decision Making and Managerial Accounting: The Basis for Business Decisions Prepare responses to the following assignment from the e-texts: • Ch. 13: Communication Activity: BYP 13-7 of Financial Accounting: Tools for Business Decision Making o Note: Include a 350- to 700-word memo addressing the problem in BYP 13-7. BYP 13-7: “COMMUNICATION ACTIVITY BYP13-7 R.J. Falk is the chief executive officer of Ventura Electronics. Falk is an expert engineer but a novice in accounting. Falk asks you, as an accounting major, to explain (a) the bases for comparison in analyzing Ventura financial statements and (b) the limitations, if any, in financial statement analysis.
There are several issues to consider when comparing the financial ratios of a public company to the industry averages. It is important to allow for any material differences in accounting policies between the specific company and the industry norms. It is also important to determine whether ratios were calculated before or after adjustments were made to the balance sheet or income statement. (Atrill & McLaney, 1997) It is also extremely important that one make sure that the financial data was developed using comparable accounting methods, classification procedures, and valuation bases. I have chosen to analyze Branch Banking & Trusts financial ratios and compare them to industry averages.
According to Arulanandam.M.A. (2001, p.1) the view proposed by “The American Institute of Certified Public Accountants(AICPA), ‘Accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money transactions and events which are, in a part at least, of a financial character and interpreting the results thereof.’” Accounting can be considered as science since it has various guidelines and standards which acts as a guide for accounting since science is a system in which knowledge and facts are precisely applied. However, accounting cannot be considered as an accurate science. TA editorial (2012) states that, “International Accounting Standards Board (IASB) Chairman Hans Hoogervorst warned accounting should not raise unreasonable expectations as it is not an exact science”. It is because there are several estimates and perceptions which accountants carry out apart from the rigid rules and regulations.
What additional alternative audit procedures do you believe the Hanauer auditors should have applied to those accounts that the client did not want confirmed? 4. Define a material audit scope limitation in general terms. Do you agree with the SEC that Hanauer’s management imposed a material scope limitation on its annual audits? 5.
TABLE OF CONENTS INTRODUCTION PG 1 COMPANY EVALUATION PG 2 COMPLIANCE AND RECOMMENDATION PG 4 SUMMARY / CONCLUSION PG 5 REFERENCES PG 6 Introduction The primary objective of Accounting Ink, is to provide LJB Company with the required information to consider the regulations for converting to a publicly traded company. Within this analysis we will identify internal controls currently being used within business operation and the required mandated internal controls enforced by the Sarbanes Oxley Act. Internal Controls are established and or regulated by the Sarbanes-Oxley Act. There are six principles of internal controls 1) Establishment of responsibility, 2) Segregation of Duties, 3) Documentation Procedures, 4) Physical Controls, 5) Independent Internal Verification and 6) Human Resource Controls (Keller, 2012). Companies and their independent accountants or auditors should report the effectiveness of the companies internal controls based on these six principles.
Data sourced ... Historical financial statement Historical financial statement BDO Seidman BDO Seidman 2). Documentation with its customer regarding its orders 3). Its credit and bad debt write-off policy 3. Non-financial factors the auditor should consider: 1).
Using accounting records prepare a balance sheet for a business and determine the balance of the cash and owner’s equity account. 4.29 Dual Effect of Transactions. For six cases, describe transactions that will cause the changes in different elements of the accounting equation. 4.30
a.|auditing existing data| b.|collecting and recording data| c.|providing information to users| d.|analyzing and managing data| ANS: A PTS: 1 DIF: Moderate OBJ: 1-1 NAT: AACSB Reflective 3. In an accounting information system, the inputs are usually a.|financial statements.| b.|analyzing data.| c.|performance reports.| d.|economic events.| ANS: D PTS: 1 DIF: Easy OBJ: 1-1 NAT: AACSB Reflective 4. _______________ is devoted to providing information for external users. a.|Management accounting| b.|Financial accounting| c.|Internal accounting| d.|Cost accounting| ANS: B PTS: 1 DIF: Easy OBJ: 1-1 NAT: AACSB Communication 5. Financial accounting information is used for a.|investment decisions.| b.|regulatory measures.| c.|stewardship evaluation.| d.|all of these.| ANS: D PTS: 1 DIF: Easy OBJ: 1-1 NAT: AACSB Communication 6.
AN EVALUATION OF THE BUSINESS AND FINANCIAL PERFORMANCE OF TESCO PLC BETWEEN 1ST MAY 2007 AND 30TH APRIL 2010 A RESEARCH AND ANALYSIS PROJECT FOR THE B.sc. (HONS) IN APPLIED ACCOUNTING TABLE OF CONTENTS PART A 1. Reasons for choosing the project topic 2. Project objectives and research questions 3. Research approach PART 2 INFORMATION GATHERING AND BUSINESS AND ACCOUNTING TECHNIQUES 1.
Accrual and Cash Accounting XACC 290 October 5, 2014 Jana Rideout Accrual and Cash Accounting Introduction In business, there are many different forms and standards to accounting. These standards are governed by rules, laws, regulations and accurate accountability of a particular business account. There are some general differences between general and commercial basis accounting principles, also differences between accrual and cash basis accounting. Those differences will be looked at here. General and Commercial Basis Accounting Principles Generally accepted accounting principles (GAAP) state the standard framework of guidelines for financial accounting used in any given jurisdiction; commonly known as standard accounting practice or accounting standards.