Accounting
Accounting Homework Individual
Chapter 7
Question 1&2
1. (a) What are generally accepted accounting principles (GAAP)? In the U.S., generally accepted accounting principles, commonly abbreviated as US GAAP or simply GAAP, are accounting rules used to prepare, present, and report financial statements for a wide variety of entities, including publicly-traded and privately-held companies, non-profit organizations. (b)What bodies provide authoritative support for GAAP? The bodies that provide authoritative support for GAAP are the Securities and Exchange Commission (SEC) and the Financial Accounting Standards Board (FASB).
2. What elements comprise the FASB’s conceptual framework?
Elements
Assets, Liabilities, and Equity
Investments by owners
Distribution to owner’s
Comprehensive income
Revenues and Expenses
Gains and Losses
Chapter 8
Exercise E8-5
1. Mingenback Company has the following internal control procedures over cash disbursements. Identify the internal control principle that is applicable to each procedure. 1. Company checks are prenumbered. 2. The bank statement is reconciled monthly by an internal auditor. 3. Blank checks are stored in a safe in the treasurer’s office. 4. Only the treasurer or assistant treasurer may sign checks. 5. Check signers are not allowed to record cash disbursement transactions. 1. Physical, mechanical, and electronic controls. 2. Other controls. 3. Independent internal verification .4.Segregation of duties. 5. Establishment of responsibility.
Chapter 15
Exercise E15-1
BLEVINS INC.
Condensed Balance Sheet
December 31
Increase or (Decrease)
2009 2008 Amount Percentage
Assists
Current Assets $125,000 $100,000 $25,000 25.0%
Plant assets
Chapter 7
Question 1&2
1. (a) What are generally accepted accounting principles (GAAP)? In the U.S., generally accepted accounting principles, commonly abbreviated as US GAAP or simply GAAP, are accounting rules used to prepare, present, and report financial statements for a wide variety of entities, including publicly-traded and privately-held companies, non-profit organizations. (b)What bodies provide authoritative support for GAAP? The bodies that provide authoritative support for GAAP are the Securities and Exchange Commission (SEC) and the Financial Accounting Standards Board (FASB).
2. What elements comprise the FASB’s conceptual framework?
Elements
Assets, Liabilities, and Equity
Investments by owners
Distribution to owner’s
Comprehensive income
Revenues and Expenses
Gains and Losses
Chapter 8
Exercise E8-5
1. Mingenback Company has the following internal control procedures over cash disbursements. Identify the internal control principle that is applicable to each procedure. 1. Company checks are prenumbered. 2. The bank statement is reconciled monthly by an internal auditor. 3. Blank checks are stored in a safe in the treasurer’s office. 4. Only the treasurer or assistant treasurer may sign checks. 5. Check signers are not allowed to record cash disbursement transactions. 1. Physical, mechanical, and electronic controls. 2. Other controls. 3. Independent internal verification .4.Segregation of duties. 5. Establishment of responsibility.
Chapter 15
Exercise E15-1
BLEVINS INC.
Condensed Balance Sheet
December 31
Increase or (Decrease)
2009 2008 Amount Percentage
Assists
Current Assets $125,000 $100,000 $25,000 25.0%
Plant assets