Charlotte Stevens 02/13/13 GAAP Cases A) The amount shouldn’t be included on the balance sheet of the business because there isn’t even half a chance that the debt will be paid. The generally accepted accounting principle that affects this situation is the going concern concept because there is a good chance that the debt won’t be paid. B) The amount that should be recognized under the accounts
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using end of period information and cash receipt/disbursement information to reconstruct the event or adjustment needed. Chapter 3 – The Balance Sheet • Be able to prepare and/or answer questions related to a classified balance sheet in good form. • Know useful characteristics of the balance sheet and the limitations of the balance sheet. Chapter 4 – The Income Statement and Statement of Cash Flows • Know how to format an income statement when discontinued
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donated capital. These two portions of the balance sheet added together make up the company’s assets‚ which represent ownership of value that can be converted into cash. The accounting equation‚ also known as the balance sheet equation‚ is how double-entry bookkeeping is established. This means that the accounting equation must balance all the time. Every transaction has a dual effect on the accounting equation. If the accounting equation does not balance then a company’s financial reports will not
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2 Financial Statements and Accounting Concepts/Principles Financial statements are the product of the financial accounting process. They are the means of communicating economic information about the entity to individuals who want to make decisions and informed judgments about the entity’s financial position‚ results of operations‚ and cash flows. Although each of the four principal financial statements has a unique purpose‚ they are interrelated‚ and all must be considered in order to get a complete
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replaced by the prudence principle which requires that the conservation principle should be applied rationally only in circumstances in which great uncertainty and doubt exists as the over – conservatism may result in misrepresentation. Soln1b. The Balance Sheet may be defined as “A Statement which sets out the assets and liabilities of a firm an institution as at a certain date. It shows the status of the business as at a given moment of time ‚ in so far as accounting figures can show its
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financial accounting‚ a balance sheet or statement of financial position is a summary of the financial balances of a sole proprietorship‚ a business partnership‚ a corporation or other business organization‚ such as an LLC or an LLP. Assets‚ liabilities and ownership equity are listed as of a specific date‚ such as the end of its financial year. A balance sheet is often described as a "snapshot of a company’s financial condition". Of the four basic financial statements‚ the balance sheet is the only statement
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A. HORIZONTAL FORM BALANCE SHEET OF............................................................................................................................................. (Name of the company) ................................... AS AT........................................................ (Date as at which it is made out) Figures for the P.Y. (Rs.) | LIABILITIES | Figures for the C.Y. (Rs.) | Figures for the P.Y. (Rs.) | ASSETS | Figures for the C.Y. (Rs.) | | SHARE
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School of Mechanical‚ Materials and Manufacturing Engineering MM2MN1 – Management Studies “1” Balancing the Books Objectives and Learning Outcomes • • • • • • • Double entry accounting The balance sheet The balance sheet equation The trial balance The trading‚ profit and loss account Opening and closing stock The ledger Prof John Dominy February 2013 MANAGEMENT STUDIES “1” BALANCING THE BOOKS Introduction Now that we have planned our business and established that it is viable
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INTRODUCTION One of the popular firms of business combination is by means of holding company or Parent Company. A holding company is one which directly or indirectly acquires either all or more than half the number of Equity shares in one or more companies so as to secure a controlling interest in such companies‚ which are then known as subsidiary companies. Holding companies are able to nominate the majority of the directors of subsidiary company and therefore control such companies. Holding
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Submitted to: - Instructor Balance sheet Balance sheet reflects the financial position of the company at a specified date Such as at the end of fiscal year. The balance sheet lists accompany economic resources and the rights or claims of creditors and owner’s in those total resources at a specific time. It is often referred to as the statement of financial position or the statement of financial condition. The balance sheet focus on their owners or creditors of the business
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