Adjusting Entries Step 5 of the accounting process involves the preparation of adjusting entries. Adjusting entries are made to update the accounts and bring them to their correct balances. The preparation of adjusting entries is an application of the accrual concept of accounting and the matching principle. The accrual concept states that revenues (or income) are recognized when earned regardless of when collected and expenses are recognized when incurred regardless of when paid. The matching
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***When visiting Prof. MacIver he said to do “Questions for review of key topics” (Q-Ch. - # questions) to study for conceptual questions on exam. *** Ch 16 - Accounting for Income Taxes: The objective of accounting for income taxes is to recognize a deferred tax liability or deferred tax asset for the tax consequences of amounts that will become taxable or deductible in future years as a result of transactions or events that already have occurred. Deferred tax assets result in deductible
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PROBLEM NO. 1 You were asked by Something Corporation to audit its financial statements for the years ended December 31‚ 2012 and 2013. While reviewing the entity’s records for 2012 and 2013‚ you discover that no adjustments have yet been made for the items listed below. Item No. 1 - Insurance premiums of P300‚000 for the three-year period beginning January 1‚ 2012‚ had been paid and fully expensed in 2012. Item No. 2 - The merchandise inventories at the end of 2012 and 2013 did not
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understanding and practicing of accounting principles‚ not only in their local countries but also in foreign countries. There are many challenges that they have to face with such as languages and currencies when recording and preparing the financial reports. Imaging that if the investors and creditors are not able to read and understand the financial information‚ they will not invest or loan money. For these reasons‚ International Accounting Standards Board (IASB) and US Financial Accounting Standards
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A common theme that often appears during plays and novels‚ especially in older times‚ is a tragedy. Tragedies can be characterized into different types. Critic A.C. Bradley has his own definition of a tragedy: a Shakespearean tragedy. He describes it as essentially a tale of suffering and calamity‚ conducting the hero to his death. Other than the death of King Hamlet‚ Hamlet’s madness is the main conflict in the play‚ and it’s this distress that leads to the downfall of Hamlet himself. Hamlet meets
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The cost of leasing production equipment is classified as: Prime Cost: No Product Cost: Yes The wages of factory maintenance personnel would usually be considered to be: Indirect Labor: Yes Manufacturing OH: Yes Manufacturing overhead consists of: all manufacturing costs‚ except direct materials and direct labor. Which of the following costs would not be included as part of manufacturing overhead? Insurance on sales vehicles Conversion costs consist of which of the following: Direct labor and
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AC/DC are an Australian rock band formed in Sydney in 1973 by Scottish born brothers Malcolm and Angus Young. Although the band are commonly classified as hard rock and are considered pioneers of heavy metal‚ they have always classified their music as "rock and roll" AC/DC underwent several line-up changes before releasing their first album‚ High Voltage‚ in 1975. Membership remained stable until bassist Mark Evans was replaced by Cliff Williams in 1977. In 1979‚ the band recorded their highly
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songs by AC/DC and Led Zeppelin‚ we can predict that Stairway to heaven is literary better‚ simply because of that specific band called Led Zeppelin. That outstanding band had and still has several iconic performers such as Robert Plant‚ Jimmy Page and John Bonham. AC/DC is one of the classical and the best bands in that genre of music‚ we simply can’t argue about that because of at least Angus Young’s divine charismatic nature and professionalism. Despite the fact of the significance of AC/DC‚ it
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AC 555 Assignment Week- 7 Problem 18-18 a. (2) b. (2) c. (2) Problem 18-21 a. 1. Both (test of authorization is a test of control) 2. Test of control 3. Substantive test of control 4. Test of control 5. Substantive test of transactions 6. Both (accounting for sequence is a test of control) 7. Substantive test of transactions b. 1. a) To determine that the amount recorded in the acquisitions journal is correct (accuracy)
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Odette A. Aquino Pérez‚ Desireé González And Edwin Reyes ACC 545 February 19‚ 2015 Prof. Rafael Marrero‚ PhD‚ MBA‚ CPA Footnotes Preparation and Discussion This week paper requires our team to prepare three notes to the balance sheet and income statement. Also‚ request us to discuss why footnotes are useful and important to financial statements. Below we have included the requested footnotes (prepared based on our experience working with a CPA Firm in public accounting) and our discussion related in
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