The common methods of a chart of accounts include Accounting types – assets, liabilities, equity, revenue, expenses and revenue, followed by order of liquidity, and the account numbers. How does the order of liquidity apply to the balance sheet? The order of liquidity exclusively applies to those accounts in the balance sheet that can be liquidly turned in cash, expenses and revenue accounts are exempt. a good example of liquidity are U.S. bonds and common stocks, some believe that real estate might be a good one , but it is not , property prices can be under valued forcing to sale under actual
ACCT 304 Week 1 to 7 Quizzes Click Link Below To Buy: http://hwcampus.com/shop/acct-304-week-1-7-quizzes/ Question 1. Question : (TCO 1) Which of the following has the authority to set accounting standards in the United States? FASB IRS SEC AICPA : 1 Question 2. Question : (TCO 2) SFAC No.5 focuses on: objectives of financial reporting. qualitative characteristics of accounting information.
awrtuaworu artoawruor ouwropwauirawr powuerpo;;awrtja;wej;l.. Accounting Principles Business entity principle: Every business is accounted for separately from its owners personal activities. Going concern principle: The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless the evidence shows that it will not continue. Objectivity principle: The accounting guideline that requires financial statement information to be supported by independent , unbiased evidence
Inversely, when a share repurchase is seen as treasury stock, the cost of the treasury stock is naturally disclosed as a decrease in total shareholders’ equity. Alcoa would report the purchase of the treasury stock by debiting treasury stock and crediting cash for the charge of the purchase. The treasury stock ought to be disclosed independently in the shareholders' equity area of Alcoa’s balance sheet as an unallocated cut of shareholders' equity. These shares are treated as issued although not part of common stock outstanding. If subsequently resold for a sum larger than the cost, Alcoa should report for the sale of the treasury stock by debiting cash for the sale cost, crediting treasury stock for cost, and crediting additional paid-in capital from repurchased stock for the excess of the selling price over the cost.
COURSE WORK 1- FINANCIAL MANAGEMENT/FINANCIAL ACCOUNTING 1. UNDERSTANDING OF THE DIFFERNCE BETWEEN FINANCIAL ACCOUNTING AND MANAGEMENT ACCOUNTING Financial accounting is focused on generally accepted accounting principles- producing a limited set of financial statements. This includes the balance sheet and the income statements, by which the overall past performance of business can be judged by outsiders. Management accounting deals with information that is not made public and is used for internal decisions making only. These reports are far more detailed than financial accounting reports and can cover performances and activities by departments, teams, products, customers and employees.
only the portion of the loss attributable to inventory sold during the period is recorded in the financial statements. B. the market value figure for ending inventory is substituted for cost and the loss is buried in cost of goods sold C. a loss is recorded directly in the inventory account by crediting inventory and debiting loss on inventory decline. D. there is a direct reduction in the selling price of the product that results in a loss being recorded on the income statement prior to the sale. 15) Designated market value A. may sometimes exceed net realizable value. B. should always be equal to net realizable value less a normal profit margin.
Cash flows statement is a summary pertaining to cash flow and outflows in detail of specific transactions within time periods. Classifying Transactions An individual account requires that either a debit or credit is recorded for each accounting transaction. Each
The consultation involves a determination on whether financial statement reporting follows regulations and guidelines established in the Sarbanes-Oxley Section 404. The consultation also includes identity of internal risks detected within Apollo Shoes. A brief synopsis of our responsibility concerning the detection and reporting of fraudulent activity follows at the end of this engagement letter. Sarbanes-Oxley Section 404 An integral part of a financial audit includes an evaluation of the internal controls in the company's financial reporting. As an auditor, understanding and testing internal control over financial requires knowledge of standards applicable to the corporation established by GAAP or IFRS.
Financial Statements ACC/280 May 01, 2012 Edward Vargas Financial Statements Accounting is extremely important by monitoring the functions of the companies, and allowing them to make appropriate financial transactions and decisions. Some areas of accounting can seem confusing and difficult but in the end the outcome is clear and concise. There are two basic forms of accounting known as; financial and managerial accounting. Financial accounting responsibilities are to follow the General Accepted Accounting Principles (GAAP) that is regulations for investor relations, creditors, and taxation purposes, whereas managerial accounting is for internal evaluation. There are different functions and categories that accounting
FASB and IASB Convergence Introduction FASB (Financial Accounting Standards Board) is an independent board consisting of accounting professional who develop and communicate Standards of financial accounting and reporting in United States. IASB (Independent Accounting Standards Body) is an organization responsible for the development and publication of IFRS (International Financial Reporting Standards) as developed by the IFRS interpretation committee. Goodwill Goodwill is an accounting term, which refers to the value of an asset that is invisible but has a quantifiable “prudent value” in the business. Financial Accounting Standards Board uses a two-step process to determine if the goodwill is impaired. The first being Recoverability Test, this step indicate the goodwill is impairment.