Provide examples of each in your discussion. week 2 Compare and contrast realization of income for income tax purposes with recognition of income for financial accounting purposes. Gambling losses are miscellaneous deductions not subject to the AGI floor. Explain why this
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.
When considering how Small Fries Inc and its other facilities should record the costs associated with OSHA compliance on their financial statements as either capitalized as an asset or charged to expenses. We should consider the types of repairs that will be done. Whether they are ordinary repairs or major and extraordinary repairs that will benefit the companies more than one year or operating cycle. According to ASC 360 -10- 25- 5 Planned Major Maintenance Activities, The use of the accrue-in-advance (accrual) method of accounting for planned major maintenance activities is prohibited in annual and interim financial reporting periods. GAAP defines a company's assets as the things it owns or controls that have measurable future economic
One of those services is attestation services. According to Arens, Elder, and Beasly, an attestation service is a "type of assurance service in which the CPA firm issues a report about the reliability of an assertion that is made by another party"(2006). There are five specific types of attestation services they are as follows: 1. Audit of historical financial statements 2. Audit of internal control over financial reporting 3. Review of historical financial
Quiz Chapter 1&2 – Auditing and Assurance Services * Question 1 2 out of 2 points | | | Which of the following is not a SysTrust Services principle as defined by the AICPA?Answer | | | | | Selected Answer: | Operational integrity. | Correct Answer: | Operational integrity. | | | | | * Question 2 0 out of 2 points | | | In "auditing" financial accounting data, the primary concern is with:Answer | | | | | Selected Answer: | analyzing the financial information to be sure that it complies with government requirements. | Correct Answer: | determining whether recorded information properly reflects the economic events that occurred during the accounting period. | | | | | * Question 3 2 out of 2 points | | | An examination of part of an organization's procedures and methods for the purpose of evaluating efficiency and effectiveness is what type of audit?Answer | | | | | Selected Answer: | Operational audit.
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.
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.
22. Which of the following best describes the conclusions an auditor makes in an integrated audit that results in an audit report that is unqualified? c. The financial statements and internal control over financial reporting are materially correct. 23. What is the purpose of a financial statement audit?
MULTIPLE CHOICE 1. In the accounting cycle, the last step is a. preparing the financial statements b. journalizing and posting the adjusting entries c. preparing a post-closing trial balance d. journalizing and posting the closing entries ANS: C DIF: Moderate OBJ: 04-01 NAT: AACSB Analytic | AICPA FN-Measurement 2. Which one of the following is not a difference between a retail business and a service business? a. in what is sold b. the inclusion of gross profit in the income statement c. accounting equation d. merchandise inventory included in the balance sheet ANS: C DIF: Moderate OBJ: 05-01 NAT: AACSB Analytic | AICPA BB-Industry 3. Net income plus operating expenses is equal to a. cost of merchandise sold b. cost
Monitor managers’ activities c. Give incentives based on performance d. Offer stock shares or stock options e. Hostile takeover threat Answer: a 3. What is the main advantage of S-corp relative to C-corp? a. Profit margin b. Single taxation c. Limited liability d. Dividend policy e. Capital structure Answer: b S-corp Distribution is taxed only once at personal income tax rate.