organisational plan and all the related measures that an entity adopts to: * safeguard assets * encourage adherence to company policies * promote operational efficiency * ensure accurate and reliable accounting records. It is either an administrative control or an accounting control Characteristics of an effective internal control system include: * Competent‚ reliable‚ and ethical personnel * Assignment of responsibilities * Proper authorisation * Separation of duties
Premium Depreciation Balance sheet Expense
2-1 BU8101 Accounting: A User Perspective Lecture 2 The Accounting Cycle Wednesday‚ 17 August 2011 Mrs. Ho Yin Kheng S3-01C-88 Nanyang Business School Nanyang Technological University Email: yklau@ntu.edu.sg Tel: 67905694 2-2 LO 2 Lecture Outline 1. Analyzing Business Transactions 2. Recording Process a. b. c. d. e. f. The Source Document The journal The accounts Debit and Credit rule Recording process illustrated Unadjusted trial balance 3. Adjusting entries
Premium Balance sheet Double-entry bookkeeping system Generally Accepted Accounting Principles
Cost Accounting -- MIDTERM 1 1) Pointed Pencil company incurs the following costs in its manufacture of pencils. Classify each one of them according to one of the value chain functions: Functions: A) Research and Development B) Design of products‚ services‚ and processes. C) Production D) Marketing E) Distribution F) Customer Service G) Strategy and Administration ____ 1) Cost of wood used in manufacture of pencils. ____ 2) Cost of wood used in packing cartons to ship pencils. ____
Premium Variable cost Cost Costs
managers need information as they strive to attain those goals. Managerial accounting is the process of identifying‚ measuring‚ analyzing‚ interpreting and communicating information in pursuit of an organization’s goals. It is an important part of any organization’s management information system. 1-1. The following changes should be in store for managerial accounting as a result of the explosion in e-commerce: a. Companies will have to invest in their security. Their private information could be at
Premium Management Goal Organization
Chapter 4 : Account Titles and Preparation of Financial Statements | Article 14 : The balance sheet items shallbe categorized as follows: 1. Assets. (1) Current assets. (2) Funds and long-term investments. (3) Property‚ plant and equipment. (4) Depletable assets. (5) Intangible assets.
Premium Balance sheet Generally Accepted Accounting Principles Asset
house. d. the house is completed. The basic document for keeping track of costs in a job order costing system is a Answer a. labor time card. b. job order cost card. c. process cost report. d. materials requisition form. The following information is available at the end of May: Balance in work in process on May 1 $141‚800 Direct materials costs for May 174‚500 Direct labor costs for May 162‚500 Overhead applied at rate of 140% of direct labor dollars Jobs completed during May:
Premium Inventory FIFO and LIFO accounting
Objective 1. Determine the total considerations transferred. 2. The land and buildings should be recorded on the premise of “in-use” or “in-exchange”. 3. Determine the fair value recorded for the intangible assets. Applicable accounting pronouncement ASC 805-20-25 Business Combinations-Identifiable assets and liabilities and any non controlling interest-Recognition Recognition Conditions 25-2 To qualify for recognition as part of applying the acquisition method‚ the
Premium Balance sheet Goodwill Asset
Accounting: Topic 6: Analysis And Interpretation Of Financial Statements (Part 2) Capital Structure Analysis Proportion of debt financing relative to equity financing (=gearing or leverage) * Reflects the entity’s financing decisions * Investments in assets are funded externally by liabilities‚ or internally by owner’s as shown in accounting equation (A=L+OE) Debt to equity ratio: Total liabilities/ Total equity x 100=x% Debt ratio: Total liabilities/ Total asset x 100=x%
Premium Balance sheet Finance Asset
The formation of the debit and credit concept In this simplified form we can begin to see what the mathematician and Father of Accounting (Luca Pacioli) saw in 1494 when he codified the double-entry bookkeeping system. It is his codified system that outlined the rules for applying debits and credits when recording the financial transactions of a business in the double-entry bookkeeping system. Now remember that Luca’s book in 1494 was written and published in Latin and at a time when the concept
Premium Double-entry bookkeeping system Bookkeeping
"The Framework states that the objective of financial statements is to provide information about the financial position‚ performance and changes in financial position of an entity that is useful to a wide range of users in making economic decisions." What is meant by saying that accounting information should be decision useful’? As stated in the AASB Framework‚ financial statements play an utmost important role to a variety of users‚ which mainly consist of the investors‚ employees‚ lenders
Premium Debt Economics Balance sheet