CHAPTER 23 Statement of Cash Flows LEARNING OBJECTIVES 1. 2. 3. 4. 5. 6. 7. 8. 9. Describe the purpose of the statement of cash flows. Identify the major classifications of cash flows. Differentiate between net income and net cash flows from operating activities. Contrast the direct and indirect methods of calculating net cash flows from operating activities. Determine net cash flows from investing and financing activities. Prepare a statement of cash flows. Identify sources of information for
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Accounting homework (Chapter 4) Discussion Questions 4.2 Why do you think it’s important to keep separate the transactions made by the business and its owner? Give an example of a personal transaction that has implications for the business entity. According to entity concept‚ every type of entity – sole trader‚ partnership‚ company and trust – must keep records of its business transactions separately from any personal transactions. Personal transactions are transactions of the owners‚ partners
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Chapter 16 Managerial accounting concepts and principles 1) Direct costs are identified with and can be traced to a cost object. Indirect costs cannot be identified with or traced to a cost object. 2) Costs by function: A) Product costs consist of manufacturing costs: direct materials‚ direct labor and factory overhead. B) Period costs consist of selling and administrative expenses. 3) A) Prime costs which consist of direct materials and direct labor costs. B) Conversion costs which consist
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Sou SOLUTIONS TO EXERCISES EXERCISE 18-1 (15-20 minutes) (a) Huish could recognize revenue at the point of sale based upon the time of shipment because the books are sold f.o.b. shipping point. Because of the return policy one might argue in favor of the cash collection basis. Because the returns can be estimated‚ one could argue for shipping point less estimated returns. (b) Based on the available information and lack of any information indicating that any of the criteria in FASB Statement
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TOPIC 1: ACCOUNTING BASES‚ POLICIES‚ AND CONCEPTS ACCOUNTING BASES - These are the methods used for applying fundamental accounting concepts to financial transactions and items‚ preparing financial accounts‚ determining the accounting periods in which revenue and costs should be recognized in the profit and loss account‚ and determining the amounts at which material items should be stated in the balance sheet. - Examples of accounting bases include: Methods of calculating depreciation Methods
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Research Methodology: Introduction Basic Concepts: Research‚ Bus. Research; Methods and methodology; population and sample; census and sampling; variable and attribute; Operational definition; Data‚ information and knowledge; Research is a process of identifying the status of a phenomenon through deploying various methods in a systematic manner. Research is a systematic process of identifying the problems‚ defining the questions and objectives‚ identifying the variables/ indicators to address
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Basic Financial Statements Accountants‚ business owners‚ investors‚ creditors and employees use four basic financial statements of an organization to determine the financial well-being and future earnings potential of that organization. Financial statements are a key tool in seeing and understanding the past‚ present and future condition of an organization. What are these financial statements and what do they mean to the reader? Do the financial statements mean something completely different to
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Chapter 4 Process Costing Chapter 4 Process Costing Solutions to Questions 4-1 A process costing system should be used in situations where a homogeneous product is produced on a continuous basis. 4-2 Job-order and processing costing are similar in the following ways: 1. Job-order costing and process costing have the same basic purposes—to assign materials‚ labor‚ and overhead cost to products and to provide a mechanism for computing unit product costs. 2. Both systems use the same basic
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Historical cost basis. Book value method. x Income statement approach. 4. (TCO G) The conclusions presented in FASB No. 157 support which FASB Conceptual Framework? (Points : 2) FASB Conceptual Framework No. 2 FASB Conceptual Framework No. 6 FASB Conceptual Framework No
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CHAPTER ONE INTRODUCTION 1.1 Background of the Study Financial accounting is one branch of accounting and historically has involved processes by which financial information about a business is recorded‚ classified‚ summarized‚ interpreted‚ and communicated; for public companies‚ this information is generally publicly-accessible (Financial Accounting Info‚ 2006). Accounting attempts to create accurate financial reports that are useful to managers‚ regulators and other stakeholders such as
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