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. Which of the following is NOT part of the financial accounting information system? a.|filing reports with the SEC| b.|reporting a large contingent liability to current and potential shareholders| c.|determining the future cashflows of a proposed flexible manufacturing system| d.|preparing GAAP financial statements| ANS: C PTS: 1 DIF: Meduim OBJ: 1-1 NAT: AACSB Reflective 7. Which of the following does NOT describe cost management system? a.|evaluation of segments or products within the firm| b.|emphasis on the future| c.|externally focused| d.|focus on effective use of
FASB Codification System Orientation Paper By Terry Cardenas ACC 497 July 9, 2013 Professor Davis The FASB created the codification system which is efficient in interim periods and annual periods that ended past the 15th of September 2009. FASB Statement number 168, describes how all accounting standards existing documents are out dated, Financial Accounting Standard Board Accounting Codification Standards and Hierarchy of the GAAP. As for other items that are not in the codification is non authoritative. By the creation of this Codification it helps to have a consistent structure of the U. S GAAP pronouncements in 90 accounting topics in display.
When we add the purchase price of different assets we bought at different periods of time inside the statement of financial position, we are actually adding diverse values. Since the book of accounts does not account for inflation, the accounting data in the accounts book does not show the true and fair value of the financial status of the company. Other than that, monetary measurement concept allows us to know only the information related to monetary value from the accounts book or statement of financial position. We cannot get the information which are not in monetary unit from accounts book or financial statements. For example, we cannot determine whether the company have good or bad employers and employees by looking at the accounts book or statement of financial positions.
According to "Accrual" (2012),” Cash-basis accounting does not recognize promise to pay or expectations to receive money or service in the future, such as payables, receivables, and prepaid expenses”. Cash basis accounting is a simple and inexpensive method to implement and utilize. Small business owners without a strong accounting background often use cash basis accounting. Even though, both cash basis accounting and accrual basis accounting are approved accounting methods for tax purposes, only accrual basis accounting is generally accepted accounting principles (GAAP). Generally accepted accounting principles requires certain companies to use the accrual basis accounting to
FASB Codification System Orientation The FASB Accounting Standards Codification system allows members to view codification content, perform research, and submit feedback. Users can research content by category, joining related content, and searching among them. It was announced in 2004 by FASB that the purpose of the Codification system would be the single source of authoritative nongovernmental U.S. GAAP effective for all interim and annual periods ending after September 15, 2009 (Schroeder, Clark, & Cathey, 2011, Chapter 1: The Development of Accounting Theory). Having all of U.S. GAAP literature in one place eliminates the need to research many different resources to solve an accounting issue. The Codification system can also help mitigate the risk of noncompliance through an improved usability of the literature.
ERISA does not mandate that employers are required to include employees as pension-plan managers. ERISA does establish standards for funding and investing and imposes fiduciary duties on pension fund managers. Only choice "d" reflects that employers are not required to establish a pension plan and employees do not need to be included as pension-plan managers. 2006 AICPA Newly-Released Regulation Questions - 2 - The Rites are married, file a joint income tax return, and qualify to itemize their deductions in the current year. Their adjusted gross income for the year was $55,000, and during the year they paid the following taxes: Real estate tax on personal residence $2,000 Ad valorem tax on personal automobile 500 Current-year state and city income taxes withheld from paycheck 1,000 What total amount of
False Independent internal verification should be made periodically and should be done by an employee who is independent of the employee responsible for the information. True 4. False False An outstanding check that was also outstanding the previous month should not be included in the reconciliation of the bank statement this month. True False 10. A postage due expense of $4.75 would be paid out of petty cash and the entry to record the transaction would reduce the balance of the Petty Cash account by that amount.
It summarizes the operational and financial objectives of the business. Informational reports collect data for the reader. Analytical reports interpret the data but do not recommend an action. Recommendation reports give a solution or action. Audit reports interpret the financial data for an organization over the past year.
SIC (Standing Interpretations Committee) Standing Interpretations Committee (SIC) The Standing Interpretations Committee (SIC) was established in 1997 to consider contentious accounting issues that needed authoritative guidance to stop widespread variation in practice.There are 33 rules of SIC. At the 23 July 2001 meeting of the Standards Advisory Council the IASB submitted a proposal to rename the Standing Interpretations Committee (SIC) as the International Financial Reporting Issues Committee (IFRIC) which was subsequently accepted. Following this change, releases from IFRIC were categorized as abstracts rather than interpretations. In December 2001 the Standing Interpretations Committee (SIC) was reconstituted as the International Financial Reporting Interpretations Committee (IFRIC). The history of International Accounting standards really began in 1966.
When he left Touche Ross to join Eisner, Hanauer’s executives wanted Goldberg to continue supervising their annual audits. As a result, in 1980 these executives dismissed Touche Ross and retained the Eisner firm. Despite several questions regarding the reliability of Hanauer’s internal controls, each year that Goldberg supervised the firm’s independent audit, he concluded that there were no material weaknesses in its internal control structure. One of his greatest concerns was the extensive and unusual degree of authority Hanauer granted to its sales staff. Some tasks performed by sales staff were: they accepted and processed customers purchased orders, personally delivered