ACCOUNTING THEORIES 1. What is the difference between a positive theory of accounting and a normative theory of accounting? 2. What do we mean when we say that ‘theories are abstractions of reality’? Do you agree that theories of accounting are necessarily abstractions of reality? 3. Identify and explain 5 different criteria we might use to establish a theory as being suitable for use in our research. 4. Is the study of financial accounting theory a waste of time for accounting
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environment could be created in the interest of the company‚ society and nation. The second discussion is focused on evaluation of ethicality of accounting activities. Manipulating the financial statements for personal interest or for loyalty towards company or its executives is unethical and the person responsible for such act will be punishable. Misstatement of financial statements is ethically wrong and should be avoided. A CFO while making decision should keep in mind the interest of public and it can
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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%
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In The Answer Is No‚ the narrative describes the story of a school teacher who went through a difficult time dealing with her personal and psychological conflict. In her painful memory of childhood‚ she was violated by her tutor (schoolmaster) who came over her house to give her private lessons. It happened when her parents were not home and she was not aware of his shameful action. Furthermore‚ he was trying to cover his serious sin by convincing her that everything was normal and that he loved
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A. What is the difference between accrual-basis accounting and cash-basis accounting? The difference between the two types of accounting is when revenues and expenses are recorded. In cash basis accounting revenues are recorded when cash is actually received and expenses are recorded when the expenses are actually paid. B. Why would politicians prefer the cash basis over the accrual basis? The accrual basis system deals with deprecation of the value of equipment‚ land and such. Politicians would
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Accounting Homework Individual Chapter 7 Question 1&2 1. (a) What are generally accepted accounting principles (GAAP)? In the U.S.‚ generally accepted accounting principles‚ commonly abbreviated as US GAAP or simply GAAP‚ are accounting rules used to prepare‚ present‚ and report financial statements for a wide variety of entities‚ including publicly-traded and privately-held companies‚ non-profit organizations. (b)What bodies provide authoritative support for GAAP
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Nature of Accounting and the Accounting Standard Background Accounting is an important part for business and it is dubbed “language” of business activities conducted by firms. People think it is used to communicate business transactions per se to all stakeholders. However‚ some people argue that the functions of accounting are not that easy. Except the communication tool‚ accounting acts as many other difference roles in business. When doing accounting‚ different standard may be used. There are
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“A&P” The narrator’s name is Sammy. He is called this name by his boss as he his ringing up a customer. He is a very observant young man and this clearly shown by these two quotes “She was a chunky kid‚ with a good tan and a sweet broad soft-looking can with those two crescents of white just under it‚ where the sun never seems to hit‚ at the top of the backs of her legs.” and "this one‚ and a tall one‚ with black hair that hadn’t quite frizzed right‚ and one of these sunburns right across under
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which Lo = 250 mm and Do = 88 mm. Dimensions of the cross-section are given below. Die angle = 90. Determine (a) extrusion ratio‚ (b) length of the extruded section if the butt remaining in the container at the end of the ram stroke is 25 mm. 12 62 50 12 4. Calculate the force required in extruding copper at 700C‚ if the billet diameter is 125 mm and the extrusion ratio is 20. 5. Calculate the extrusion force for a round billet‚ 200 mm in diameter made of beryllium and extruded at 1000C
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Costs assigned to the building of a house should appear on the income statement when Answer a. the purchase order to manufacture the house is received. b. the house is sold. c. cash is collected for the sale of the 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
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