financial technical bulletins. : Question 2. Question : (TCO 2) Enhancing qualitative characteristics of accounting information include each of the following, except timeliness. materiality. comparability.
Why not use the Trial Balance to report financial information internally and externally? What limitations does it have over formal financial statements? What is a fiscal year? What are the steps in completing the accounting cycle? Discuss the relationship between the amounts on the Adjusted Trial Balance for an account and its ledger?
Running head: EMERGING ISSUES Assignment #2 Emerging Issues Task Force Accounting 557: Financial Accounting Abstract In 1982, the Financial Accounting Foundation Structure Committee produced a report on operating efficiency that indicated a need for more timely guidance on implementation questions. That report resulted in the formation of an advisory group, which evolved into the Emerging Issues Task Force (EITF). This task force was established to assist the Financial Accounting Standards Board (FASB) in improving financial reporting through the timely identification, discussion, and resolution of financial accounting issues. (FASB, 2011) This paper discusses and explores the EITF in greater detail. Discussion Question 1 Discuss how the Emerging Issues Task Force influences Generally Accepted Accounting Standards.
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 rather than someone’s opinion; objectivity adds to the reliability, verifiability, and usefulness of accounting information. Cost principle: The accounting principle that requires financial statement information to be based on actual costs incurred in business transactions; it requires assets and services to be recorded initially at the cash or cash equivalent amount given in exchange. Revenue recognition principle: Provides guidance on when revenue should be reflected on the income statement; the rule states that revenue is recorded at the same time it is earned regardless of whether cash or another asset has been exchanged. Business Organizations Single proprietorship: A business owned by one individual, which is not organized as a corporation; also called a sole
In such cases, the auditor will likely issue a: • Question 18 Which of the following is least likely to cause uncertainty about the ability of an entity to continue as a going concern? • Question 19 The members of a client's "audit committee" should be: • Question 20 Which of the following services are allowed by the SEC whenever a CPA also audits the company? • Question 21 A six-step approach is often used to resolve an ethical dilemma. The first step in this process is to: • Question 22 Under the AICPA independence rules, the
Include an abstract. A running head is optional. Analyze reporting requirements for private sector, not-for-profit organizations under Financial Accounting Standard Board guidance. Compare and contrast accounting practices between the two different assignments. ACC 548 Week 5 Learning Team Assignment Reporting Requirements M to purchase http://allmysolution.com/ACC-548_c119.htm Product Description One issue in accounting is the qualifications of an accountant when working for a client.
Case 14-2- Fresh Fun Inc. To: Kevin Maclean, Fresh Fun Inc. From: auditor, Doyle Republic Regarding: Jan 31, 2012 year-end financial reporting and impact of change to IFRS Overview Since the bank loan’s terms require financial statements to be prepared in accordance with Generally Accepted Accounting Principles (GAAP) that is one constraint. Another constraint is to follow the rules of Accounting Standards for Private Enterprises (ASPE). IFRS is not a constraint since you have chosen to use ASPE in preparing the financial statements. However, as per your request I will also outline how the issues would have been treated differently under IFRS in addition to ASPE. The primary users are the 3 current owners including yourself who take an active role in managing the company.
Utilization of Budgets and Pro-Forma Statements, Ensuring Adequacy of Funds As stated in Rollins a pro forma financial statement is defined as "a financial statement prepared on the basis of some assumed events and transactions that have not yet occurred” (2012). In essence businesses will complete a financial statement utilizing forecasts and historical data to determine how their financial position would look at the end of a fixed period of time. Pro-forma statements can be useful for a number of different aspects of financial planning, but primarily for balance sheets and income statements. When preparing a pro-forma statement, the basis or beginning balances are derived current financials, while projections may be derived from; historical performance or expenditures, market analysis, known capital investments, or other inbound/outbound revenue or costs that can be reasonably provided. While historical statements or actual statements are hard data sets based upon actual numbers, pro forma statements, while the same in appearance allow management the opportunity to make
The Sarbanes-Oxley Act requires auditors to review the internal controls of any audited company. This review is to evaluate the internal control structure and procedures to confirm that they reasonably assure that all transactions are recorded accurately and in a manner that will allow preparation of the financial statements in accordance with GAAP. This review will include a description of any material weaknesses in the internal controls along with recommendations to improve the internal controls to resolve the
Managerial and Financial Accounting Paper Managerial and financial accounting are two very different methods of accounting. Both versions can be very important to the success any organization. This paper will differentiate between managerial and financial accounting while addressing the type of information each provides and how business decisions are made based on the information provided from each type of accounting. What type of information does managerial accounting provide? Managerial accounting presents information to support the broad roles, the development of objectives, strategies, operating plans, identification of organizational problems or potential problems and ensures that resources are obtained for use according to plans for achieving the internal objectives for the internal uses.