Chapter 2 Lab Intermediate Accounting I (a) The president of Gonzales‚ Inc. used his expense account to purchase a new Suburban solely for personal use. Miscellaneous Expense 29‚000 Cash 29‚000 This in inappropriate based on the economic entity assumption. Economic Entity Assumption states that the economic activity can be identified with a particular unit of accountability. In other words‚ a company
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bankruptcy in the future. The accounting period of the business would be continuing as usual until the business is officially shut down due to bankruptcy. The time interval concept means the business life of all the company has to separate similarly into the same accounting period. CITATION woo12 \l 17417 (Wood & Sangster‚ 2012) For example‚ the accountants of the companies need to
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analysis of financial accounting topics involved in preparing financial statements and in external reporting. Students may receive credit for only one of the following courses: ACCT 310 or BMGT 310. Course Goals/Objectives This course should help you develop the ability to apply GAAP to a variety of complex accounting and financial reporting situations. The specific goals of this course are to: • provide a more extensive understanding of financial accounting principles and procedures and their
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Introduction Traditionally‚ cash basis of accounting has been used in the public sector; however‚ in recent years extensive debates have emphasised whether a move to accruals basis of accounting would be more feasible. The proponents argue for such a change due to the benefits accruals basis has to offer. There are still heavyweight supporters for cash basis such as IFAC – a body that issued 21 IPSAS based on IMF‚ EU Commission‚ and IFRS / IAS (Jorge Faustino‚ 2008). Moreover‚ there are several organisations
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ACCOUNTING AND THE BUSINESS ENVIRONMENT Chapter 1A Class Preparation Assignment (Rev 1-08) Checklist: __x____ I have obtained a copy of the textbook from the LLC & then purchased the Course Outline for BUACT- 206 (Bookstore) for use everyday in class. __x____ I read Chapter 1 in text‚ and found it to be a fulfilling experience. __x_ __ I reviewed the outline for Chapter 1 __x____ I know the Accounting Equation __x____ I understand how to analyze a transaction. __x____ I know
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Intro to accounting Business Activites Financing Investing Operating Types of Financing Equity investors: Stockholders Hope to receive dividends or increase in stock price—no guarantees! Public versus private company Debt investors: Creditors of the business Expect principal and interest payments SEC (Securites and exchange commission) Established in 1933 Requires of public companies: Form 10-K (annually) Form 10-Q (quarterly) Audited financial statements (annually) by an “independent
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achieving future cash flows. Limitations * Companies omit items that cannot be measured reliably. * Income is affected by the accounting methods employed. * Income measurement involves judgment. Earnings Quality Companies have incentives to manage income to
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CHAPTER 2 & 3 Top of Form Question 1 1. Below is the common equity section (in millions) of Teweles Technology’s last two year-end balance sheets: 2009 2008 Common stock $2‚000 $1‚000 Retained earnings 2‚000 2‚340 Total common equity $4‚000 $3‚340 Teweles has never paid a dividend to its common stockholders. Which of the following statements
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Effect of Applying Fair Value on the Financial Statements of UK Leading Companies By Bassam Kazmouz 0948799 Supervisor Dr Robert Wearing September 2010 Dissertation submitted in partial fulfilment of the requirements for the award of ACCOUNTING AND FINANCE (MSC) www.abahe.co.uk Arab British Academy for Higher Education TABLE OF CONTENTS I. Introduction ........................................................................................................... 5 1.1 Overview
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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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