Topic 1 Accounting and Society Prepared by Graeme Wines. One issue in Topic 1 that can be a little confusing is the distinction between inductive and deductive theories. The example of the topical area of climate change can be used to provide explanations of the distinction which may help your understanding. Inductive theory A descriptive (explanatory/scientific) theory‚ as these terms imply‚ suggest that the theory is attempting to describe or explain a particular phenomenon‚ and that
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Governmental Accounting Standards Board and Financial Accounting Standards Board Analysis Paper ACC/460 October 28‚ 2013 Governmental Accounting Standards Board and Financial Accounting Standards Board Analysis Paper The purpose of this paper is to review‚ compare‚ and show the contrast between the two accounting standard boards; Governmental Accounting Standards Board (GASB)‚ and the Financial Accounting Standards Board (FASB). The objectives of both Boards will be discussed as well as similarities
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One of the biggest competitor of Jimmy Choo is Hermes International that is into designs‚ production‚ and distribution of personal luxury accessories and apparel. In terms of its profitability‚ Hermes International Gross Profit % as well as Return on Equity is comparatively higher than Jimmy Choo ‚ due to major of the revenue generated from sales of Leather Goods. The Growth in Leather goods and Saddlery is (+14%) which is remarkable‚ due to which investments in Leather goods and Saddlery division
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associated with the subsidiary’s activities is limited 1-3 Organizational Structure‚ Acquisitions‚ and Ethical Considerations • Manipulation of financial reporting – Usage of subsidiaries or other entities to borrow money without reporting the debt on their balance sheets – Using special entities to manipulate profits – Manipulation of accounting for mergers and acquisitions • Pooling-of-interests 1-4 Business Expansion and Forms of Organizational Structure • Expansion from within:
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Accounting Study Guide for Test # 2 Topic 5: Financial Statement Analysis 5-1 (Q5-1) Explain in general terms the concept of return on investment. Why is this concept important in the analysis of financial performance? Return on investment measures profitability in relation to the amount of investment that has been made in the business. A company can always increase dollar profit by increasing the amount of investment (assuming it is a profitable investment). So‚ dollar profits are not necessarily
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"Financial accounting produces information for external parties such as stockholders‚ suppliers‚ banks‚ and government regulatory agencies" (Horngren‚ Sundem‚ & Stratton‚ 2005‚ p. 5). "Financial accountants prepare financial statements based on general ledgers and participate in important financial decisions involving mergers & acquisitions‚ benefits/ERISA planning and long-term financial projections"(Accounting: Job Options‚ 2000). These reports are used by owners of a business‚ or by people who
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would do). Then‚ its year 2 opening net assets are $276.36‚ and net income would be: P.V. Ltd. Income Statement For Year 2 Accretion of discount (10% × 276.36) P.V.’s balance sheet at time 2 would be: P.V. Ltd. Balance Sheet As at Time 2 $27.64 Financial Asset Cash: (140 + 14 + 150) $304.00 Shareholders’ Equity Opening Balance: 276.36 (286.36 - 10.00 dividend) Capital Asset‚ at Present value 0.00 $304.00 Net income 27.64 $304.00 Thus‚ at time 2 the shareholders have: Cash from dividend
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Bonding cost is the cost that associated with the establishing and complying with the act for principal best interest. The agent will voluntarily provide principal with related information to serve their interest such as providing the quarterly financial report that required the agent effort. Usually the agent will bear the bonding cost in order to guarantee their behavior towards principal. For example‚ the agent will produce quarterly annual report and disclose the important information to the
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Abstract The international accounting standards board (IASB) has replaced the international accounting standards committee (IASC) in 2001 and at the same time many standards of IFRS come from the International Accounting Standards which issued by IASC. After the new standards announce‚ the uptrend of globalisation has pushed more and more countries on their ways of adopting the international accounting standards. The drive for IASB is a British initiative and London is the headquarters for the IASB
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ALL ANSWERS ASSUME A TAX RATE OF 35% Even though the tax rate appears to be 1720 / 6725 = 25.57% In answering the following questions‚ please refer to the financial statements of Caterpillar Inc. (CAT) and the relevant Notes to these statements at the end of this write-up. 1. What could be the cause(s) for the shift in LIFO-based inventory from 70% at December 31‚ 2010 to 65% at December 31‚ 2011? A decrease in the replacement cost for Cat’s inventories‚ or an increase
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