1 CHAPTER ONE: ACCOUNTING IN BUSINESS Chapter Outline I. Importance of Accounting—we live in the information age‚ where information‚ and its reliability‚ impacts the financial well-being of us all. A. Accounting Activities Accounting is an information and measurement system that identifies‚ records and communicates relevant‚ reliable‚ and comparable information about an organizations business activities. B. Users of Accounting Information 1. External Information Users—those not directly involved
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Kai that represent tangible assets? Fixed assets‚ Investment properties‚ Properties for sale. b) What are the differences among these accounts? Fixed assets: Known as a non-current asset or as property‚ plant‚ and equipment‚ is a term used in accounting for assets and property which cannot easily be converted into cash. This can be compared with current assets such as cash or bank accounts‚ which are described as liquid assets. In most cases‚ only tangible assets are referred to as fixed. Investment
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pursue is a single asset that is separate from the company’s other assets. It is measured by the variability of the single project alone. Stand-alone risk does not take into account how the risk of a single asset will affect the overall corporate risk. Corporate Risk This risk assumes the project a company intends to pursue is not a single asset but incorporated with a company’s other assets. As such‚ the risk of a project could be diversified away by the company’s other assets. It is measured by
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service concession arrangements. Prior to 2008‚ these arrangements were typically accounted for under Philippine Accounting Standards (PAS) 17 on Leases‚ and PAS 16 on Property‚ Plant and Equipment. In transitioning to IFRIC 12‚ accounting for assets‚ liabilities and related
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not needed. To obtain the EFN the EFN would equal total assets –total liabilities and equity. After calculating this for Huffman Trucking‚ it is determined that there will not be a need to raise external funds because they have the required funding in their projections. Ratio calculations There are several ratios that are used to help project the status of Huffman Trucking in the coming year. There are ratios like the current ratio; asset ratio and profit as a percentage of sales that can help determine
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Institutions (AAOIFI)‚ Sukuk is defined as a certificate of equal value representing undivided share in the ownership of tangible assets‚ usufructs or services or assets of a particular project or any specified investment activity. On the other hand‚ Securities Commission Malaysia (SC) defines Sukuk as trust certificates of participation securities that grants investors a share of the asset along with the cash flow and risks that commensurate from such ownership. Based on the two definitions that given by AAOIFI
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purchasing power of the dollar has not changed. Part of the monetary unit assumption is that accountants report assets as dollar amounts‚ rather than reporting in detail all of the specific assets. If an asset cannot be expressed as a dollar amount‚ it cannot be entered in the general ledger. For example‚ the management team of a very successful corporation is by far its most valuable asset. However‚ the accountant is not able to objectively convert those talented people into a dollar or monetary amount
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Balance Sheet Fixed assets Intangible Assets 154.0 154.0 Tangible Assets 11032.0 9580.0 Investments 317.0 304.0 Total Fixed Assets 11503.0 10038.0 Current assets Stock 929.0 838.0 Debtors due within one year 454.0 322.0 Short-term investments 225.0 255.0 Cash at bank and in hand 445.0 279.0 Total Current Assets 2053.0 1694.0 Creditors: Amounts falling due within one year -4809.0 -4389.0 Net Current Assets (liabilities) -2756.0 -2695.0 Total assets less current liabilities
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What is the amount of Daley Company’s total assets? Total assets 349‚700 add liabilities and stockholders equity =assets (b) The total assets of Laven Company are $181‚100 and its stockholders’ equity is $82‚800. What is the amount of its total liabilities? Total liabilities $ 98‚300 asset minus stockholders equity = liabilities (c) The total assets of Peterman Co. are $901‚000 and its liabilities are equal to one fourth of its total assets. What is the amount of Peterman Co.’s stockholders’
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impairment of a long-lived asset (group) to be held and used: * Indicators of impairment — consider whether indicators of impairment are present. * Test for recoverability — If indicators are present‚ perform a recoverability test by comparing the sum of the estimated undiscounted future cash flows attributable to the asset (group) in question to their carrying amounts (as a reminder‚ entities cannot record an impairment for a held and used asset unless the asset first fails this recoverability
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