the accounting principles and concepts that were violated in the case. Explain the appropriate accounting treatments that should be used. Accounting is a systematic recording of business transactions and statements relating to assets‚ liabilities and summarizes the financial events that occur in a business. There are certain accounting principles and concepts to preparing reports on financial statements. These accounting principles and concepts are usually referred to as General Accepted Accounting
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Jim McFie‚ a Fellow of the Institute of Certified Public Accountants of Kenya FASB (the Financial Accounting Standards Board‚ a US body) was the first organization to develop “Concepts Statements”. All the other “Concepts Statements” have been based on those developed by FASB. A new “Conceptual Framework for Financial Reporting” was worked on jointly by FASB and IASB (the International Accounting Standards Board) and was published simultaneously by FASB and IASB in September 2010. It deals with
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Accounting is often referred to as the language of business. It is a special-purpose tool for communication about the financial statements and the performance of a company. This can happen through written‚ natural language by selecting words from a standard vocabulary combining them in meaningful ways. These words are then organised into financial reports according to relatively flexible rules of presentation. Accounting dates back to 1494 when Luca Pacioli published a book called Summa de Arithmetic
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`Accounting 6135‚ Advanced Accounting Theory Arthur G. Hendricks‚ Ph.D.‚ CPA professor BU 410 Thursday 7:10 PM to 10:00 PM Required Texts 1. Scott‚ W.R.‚ Financial Accounting Theory‚ 5th edition‚ Prentice Hall (Pearson Education Canada‚ Ltd) 2009 (ISBN 978-0-13-207286-1) 2 Concepts Statement #7‚ Using Cash Flow Information and Present Value in Accounting Measurements‚ FASB‚ February 2000. 3. Optional; The Wall Street Journal. You are expected to read the financial pages of the news media
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preparing the company’s adjusting entries for the month of July. (Bear in mind that adjusting entries have already been made for the first seven months of 2002‚ but not for July.) OFF-CAMPUS THEATER Unadjusted Trial Balance July 31‚ 2002 Cash $ 16‚200 Prepaid film rental 28‚000 Land 100‚000 Building 240‚000 Accumulated depreciation: building $ 16‚000 Fixtures and equipment 12‚000 Accumulated depreciation: fixtures and equipment 3‚000
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Cost accounting deals with ascertainment ‚ allocation ‚ apportionment accounting aspect of costs.Management accounting deals with the effect and impact of costs on the business. 2. Cost accounting provides a base for management accounting whereas management accounting is derived from cost accounting and financial accounting. 3. Cost accounting does not include financial accounting ‚ tax planning and tax accounting. Management accounting includes financial and cost accounting ‚ tax accounting
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9.5 Manager’s Information Advantage 9.5.1 Earnings Management 9.5.2 Controlling Earnings Management 9.6 Discussion and Summary 9.7 Agency Theory: A Bondholder-Manager Lending Contract 9.8 Implications of Agency Theory for Accounting 9.8.1 Is Two Better Than One? 9.8.2 Rigidity of Contracts 9.9 Reconciliation of Efficient Securities Market Theory with Economic Consequences 9.10 Conclusions on the Analysis of Conflict Copyright © 2009 Pearson Education Canada
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281 When using Online Practice for Financial Accounting‚ please assume the following: • Accrual basis accounting is being used unless Online Practice specifies cash basis accounting. (Very briefly: in accrual basis accounting‚ revenues are recognized when earned‚ not necessarily when cash is received‚ and expenses are recognized when incurred‚ not necessarily when cash is paid. For more information‚ please see the Online Practice for Financial Accounting Dictionary.) • The fiscal year is the calendar
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QUESTIONS FOR MID-TERM EXAM 1. All the users of interested parties (users of information) have equal possibility/rights/power to get company’s financial information. Do you agree with this statement (give you arguments)? How financial statements are useful to the various interested parties (users of information)? Financial accounting’s aim is to allow all the users of interested parties to understand firm’s situations in global and synthetic way. The financial statement produce information
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ACQUISITION Answers to Discussion Questions How Does a Company Really Decide which Investment Method to Apply? Students can come up with literally dozens of factors that should be considered by Pilgrim in making the decision as to the method of accounting for its subsidiary‚ Crestwood Corporation. The following is simply a partial list of possible points to consider. Use of the information. If Pilgrim does not monitor its own income levels closely‚ applying the equity method would seem to be a
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