Question : (TCO 3) What is the purpose of the closing process? (TCO 1) The SEC issues accounting standards in the form of accounting research bulletins. financial reporting releases. financial accounting standards. financial technical bulletins.
Promulgate GAAP. a. The American Institute of Certified Public Accountants (AICPA) b. The Financial Accounting Standards Board (FASB) c. Government Accounting Standards Board (GASB) d. The Securities and Exchange Committee (SEC) 3. Issue Statements on Auditing Standards.
They should rely on the additivity within financial statements- the analyst can rely on the internal discipline of accounting across the three primary financial statements to reduce the possibility of errors from inconsistent assumptions. Seven step forecasting game plan 1. Project revenues from sales and other operating activities 2. Project operating expenses and derive projected operating income 3. Project the operating assets that will be necessary to support the level of operations projected in steps 1 and 2.
It is important to recognize the regulation impact statement that is not prepared in connection with the issuance of AASB 13 as the amendments made are minor in nature. What can make AASB is adoption of a wider scope of proposed issues. Some of these issues are write-downs of sound assets required under the current implementation of fair-value accounting which adversely affect market sentiment. The provision on AASB should accommodate well the write-downs margin that impacts in a downward spiral that may lead to large-scale fire-sales of assets, and destabilizing, pro-cyclical feedback effects. These damaging feedback effects worsen liquidity problems and contribute to the conversion of liquidity problems into solvency
The following are the questions asked by the case and my understanding of applicable GAAP. I will present my finds and an alternate for each to the questions with a conclusion to follow. 1. For the year-end December 31, 2007, financial statements, what amount should M record as a liability? 450-20-25-2 states that we must recognize a liability when it is probable and estimable.
The courts ruled against Mack as by backdating his payment for the fertilizer, he was trying to reduce his tax liability. Tax evasion is breaking a civil statute and falls under statutory illegality. Hence, the courts deemed the agreements to be unenforceable (Weir, D. Jan, Pg 147). There are two impacts of this case on a certified general accountant (CGA). The first impact is skills development.
Issue Statements on Auditing Standards. American Institute of Certified Public Accountants 4. Regulate the distribution and trading of securities offered for public sale. Securities Exchange Commission 5. Establish its’ own code of professional ethics.
ACC 403 Midterm Exam Answers http://www.homework-bank.com/downloads/acc-403-midterm-exam-answers/ ACC 403 Midterm Exam Answers Part 1 • Question 1 Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information for decision making is commonly called: • Question 2 ________ risk reflects the possibility that the information upon which the business decision was made was inaccurate. • Question 3 The use of the Certified Public Accountant title is regulated by: • Question 4 The Sarbanes-Oxley Act applies to which of the following companies? • Question 5 Three common types of attestation services are: • Question
Retrieved October 10, 2010, from http://www.labyrinthinc.com/sharedcontent/sec501.asp?Page=5&subs=6 Siegel, B. (2004, California CPA ). Tax benefits of IRC Sec. 165. California CPA .
2. What are the primary ways in which commercial banks serve their customers? The primary ways are the creditor-debtor relationship, the agency relationship and the contractual relationship. 3. What is an overdraft?