7101AFE Financial Accounting Theory and Practice Tutorial Questions for Tutorials 1- 6: Semester 1 2015 TUTORIAL 1 - Semester 1 2015 Deegan Topic 1: Introduction to financial accounting theory QUESTION 1 – Question 1.2: If you developed a theory to explain how a person’s cultural background influences how they prepare financial statements‚ would you have developed a positive theory or a normative theory? The first of all‚ it is important to understand the mean by a ‘theory’. According to Contemporary
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Chapter 1 Financial Accounting A system through which managers report financial information about an economic entity to a variety of individuals who use this information for various decision making purposes. The process of identifying‚ recording‚ summarizing‚ and reporting economic information to decision makers. Managers of Companies Must Understand 2 Things: 1) Economic Consequence Perspective: Considering and understanding how such events affect the financial statements. 2) User Orientation:
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investments or capital of the firm and not only in relation to sales. Return on capital employed ratio measures the efficiency with which the investment made by shareholders and creditors is used in the business. Managers use this ratio for various financial decisions. It is a ratio of overall profitability and a higher ratio is‚ therefor‚ better. To see whether the business has improved its profitability or not‚ the ratio can be calculated for a number of years. Return on equity (ROE) is widely
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problem the three foundational ethical principles of utility‚ justice‚ and respect for persons. These principles create a framework for the equitable allocation of scarce organs for transplantation. To solve the ethical challenges Ms. New shall apply the eight key steps before taking any action. Multistep decision-making Step One: Clarify the conflict Step Two: Identify all stakeholders and values Step Three: Understand the circumstances surrounding the ethical conflict • Takes utility into account
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0-20% a)HELD TO MATURITY: only used for debt securities LOCOM (if impaired‚ write down) Financial Investment (A+) 22 Cash (A-) 22 b)TRADING: gains & losses are recognized in I/S; intention of investor is to profit from ST price fluctuations FAIR VALUE Financial Investment (A+) 22 Cash (A-) 22 Financial Investment (A+) 4 Gain on investment on securities (OE+) 4 c)AVAIL FOR SALE: recorded on B/S at FAIR VALUE; gains
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1. Jon was named to run the Clayborn General Store. He was given the power to hire and fire salespeople‚ buy and sell stock‚ supervise all operations‚ and make out the weekly work schedule. Name and explain the type of agent that Jon’s authority made him. Jon is a general agent. A general agent is a person who is given broad authority to act on behalf of the principle in conducting the bulk of the principal’s business activity on a daily basis. As a general agent‚ Jon has the authority to take these
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There are five principles to ethical nursing. The first principle‚ nonmaleficence‚ or do no harm‚ it is directly tied to a nurse’s duty to protect the patient’s safety. This principle dictates that we do not cause injury to our patients. A way that harm can occur to patients is through communication failures. These failures can be intentional or as a result of electronic or human error. Failing to convey accurate information‚ giving wrong messages‚ and breaking down of equipment‚ can cause harm
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BAO3309 Advanced Financial Accounting Semester 2011 Non-Graded Assessment There are 1 Multiple Choice Questions and you have 13 minutes to complete this assessment 1) Which of the following is true about theories in general? A. Theories can include any coherent set of ideas or statements to explain‚ or provide guidance in respect of‚ certain phenomena B. Theories must be empirically based to describe what is‚ rather than what should be C. Theories must be based on
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Week 2: Topic 1: Financial Accounting Theory & the Reporting Environment GHTHH Chapter 2 5. Researchers who develop positive theories and researchers who develop normative theories often do not share the same views about the roles of their respective approaches to theory construction. (a) How do positive and normative theories differ? (b) Can positive theories assist normative theories‚ or vice versa? If yes‚ give an example. If not‚ why not? Normative accounting research makes policy recommendations
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Ethical codes determine a person’s outlook on right and wrong. It influences their interactions with people (Williams‚ 2011). Personal ethics and professional ethics may differ each influences the other‚ and sway the workplace environment (Williams‚ 2011). Companies want their corporate traditions to have a sense of ethical responsibility (Williams‚ 2011). Frequently‚ professional ethics covers the same principles of personal ethics‚ for example honesty‚ and fairness (Williams‚ 2011). These
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