CHAPTER 9 Reporting and Analyzing Long-Lived Assets ANSWERS TO QUESTIONS 1. For plant assets‚ the cost principle states that plant assets are recorded at cost‚ which consists of all expenditures necessary to acquire the asset and make it ready for its intended use. 2. In a cash transaction‚ cost is equal to the cash paid. In a noncash transaction‚ cost is equal to the cash equivalent price paid‚ which is the fair market value of the asset given up or the fair market value of the asset received
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ACCOUNTING THEORIES 1. What is the difference between a positive theory of accounting and a normative theory of accounting? 2. What do we mean when we say that ‘theories are abstractions of reality’? Do you agree that theories of accounting are necessarily abstractions of reality? 3. Identify and explain 5 different criteria we might use to establish a theory as being suitable for use in our research. 4. Is the study of financial accounting theory a waste of time for accounting
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Introduction It was not until recently that accounting and reporting acquired 3 new aspects to it‚ organisations are now being expected to be embracing Corporate Social Responsibility. This entails social and environmental reporting as well as having a well formulated code of ethics. In this essay I will be exploring the concepts‚ benefits‚ and drawbacks of Ethical‚ Social‚ and Environmental Accounting and Reporting. Definitions Ethical accounting and reporting Ethics can be described as the
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1 ACCOUNTING 1 (ACN101- M) STUDY UNIT 1: THE NATURE AND FUNCTION OF ACCOUNTING DEFINITION: • • • Accounting can be defined as the orderly & systematic recording of the monetary values of financial transactions of a business The reporting of results Providing financial information as a basis for decision making 3 main processes define the accounting process: 1. IDENTIFYING: Selecting evidence of economic / financial activity (transactions) 2. RECORDING transactions to provide a permanent
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Consignment Accounting 1 Points to be kept in mind Consignor remains the owner of goods even after sending to consignee. Consignor does not send any Invoice rather a Performa invoice. The Amount of Sales belongs to Consignor. All the exp. are to be borne by Consignor. If borne by consignee‚ recoverable from consignor. Consignee entitled to Commission. Consignee entitled to de-credere commission if he is responsible for bad debts. Consignee sends a statement called Account Sales‚ periodically
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ISSUES IN ACCOUNTING EDUCATION Vol. 26‚ No. 4 2011 pp. 797–806 American Accounting Association DOI: 10.2308/iace-50053 Home Heaters: A Holistic View of the Financial Statements M. Cathy Claiborne and Kirkland A. Wilcox ABSTRACT: In this case‚ two start-up companies in the same industry have identical economic transactions. Although both companies follow generally accepted accounting principles (GAAP)‚ each manager makes different choices and estimates when applying GAAP. By preparing
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conditions justify a 14 percent required rate of return. PV = CF^n / (1 +i) ^n PV = CF n / (1 + i)^4 PV = 70 / (1 + .14) ^4 PV = 70 / (1.14) ^4 PV = 70/ 1.14 + 70/ 1.30 + 70/ 1.48 + 70/ 1.69 PV = 61.40 + 53.85 + 47.30 + 41.42 = $203.97 PV of the par value = 1‚000 PV = $203.97 + 1‚000 = $1203.97 b. Now‚ suppose Twin Oaks’ four-year bond had semiannual coupon payments. What would be its current value? (Assume a 7 percent semiannual required rate of return. However‚ the actual rate would be slightly
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focus and concentrate on few products; Companies must look constantly for new products to design; Product Decision- to develop‚ implement a product strategy that meets the demands of the marketplace with a competitive advantage; Product strategy is 1 of 10 decisions of OM and focuses on developing a competitive advantage thru differentiation‚ low cost‚ rapid response‚ or combination of these. PRODUCT STRATEGY OPTIONS: Product Selection- the choosing of good or service to provide customers or clients;
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Explaining Basic Accounting Concepts and Business Structures To understand accounting there are several key concepts and terms to be familiar with. One must know where Generally Accepted Accounting Principles came from as well as how businesses form. Sources of Generally Accepted Accounting Principles The Securities and Exchange Commission (SEC)‚ American Institute of Certified Public Accountants (AICPA)‚ Financial Accounting Standards Board (FASB)‚ and the Government Accounting Standards Board (GASB)
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Accounting Standards Boards Leslie Brian ACC/541 November 14‚ 2011 Delphine Agnor Wolsker Accounting Standards Boards The field of accounting is constantly evolving. This is true not only for the theory of accounting itself but also the entities that govern its theory and practice. Presently‚ the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are faced with some of the biggest challenges to date. To understand the significance
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