ACCT1501 ACCOUNTING & FINANCIAL MANAGEMENT 1A SEMESTER 1 2008 COURSE NOTES Last Revised: 13th August 2008. kaheiyeh.web.officelive.com Contents Page 3: The Nature of Accounting Page 5: The Balance Sheet & Transaction Analysis Page 8: The Income Statement & Transaction Analysis Page 13: Financial Reporting Principles Page 18: Adjustment to Accounting Entries Page 23: Completing the Accounting Cycle Page 26: Accounting for Cash Holdings & Receivables Page 30: Accounting for Inventory Page 37:
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198 Accounting Standard (AS) 14 (issued 1994) Accounting for Amalgamations Contents INTRODUCTION Definitions EXPLANATION Types of Amalgamations Methods of Accounting for Amalgamations The Pooling of Interests Method The Purchase Method Consideration Treatment of Reserves on Amalgamation Treatment of Goodwill Arising on Amalgamation Balance of Profit and Loss Account Treatment of Reserves Specified in A Scheme of Amalgamation Disclosure Amalgamation after the Balance Sheet Date ACCOUNTING STANDARD
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Accounting Equation ACC 300 June 24‚ 2013 Bennie Clark Accounting Equation Assets = Liabilities + Stockholder’s Equity is the basic accounting equation. Liabilities are a company’s legal debts or obligations that come from transactions or from business operations. Stockholder’s equity is capital received from investors in exchange for stock‚ retained earnings and donated capital. These two portions of the balance sheet added together make up the company’s assets‚ which represent ownership
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Introduction to Financial Accounting 1. A _____ year ends on a date that is determined by the firm‚ perhaps based on its business model (for example‚ many retailers choose the end of January). physical natural fiscal business cycle Normal ANS: C 2. An income statement connects two successive _____ through its effect on retained earnings. a. balance sheets b. cash flow statements c. cash receipts and disbursement statements d. funds flow statements e. financing statements
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on February 1‚ 2011 for $500‚000. The equipment is expected to last ten years‚ have a salvage value of $30‚000 and be depreciated using the double-declining-balance method. Depreciation for year 1 $9‚400 Depreciation for year 2 $752 Asset #5—Assembly Line—Henry purchased an assembly line on January 15‚ 2011 for $400‚000. The line will be depreciated using the units of activity method of depreciation. The line has no salvage value and will be depreciated over twenty years or
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Interest Paid = 16.32% Taxable income = 53.25% Taxes (34%) = 1.8% Net income = 3.5% Dividends = Additonal Retained earnings = Common Size Balance Statement 2006: ASSETS Cash = 2% Accounts receivable = 3.73% Inventory = 7.1% Total Current Assets = 12.83% Net Plant and Equipment = 87.19% Total Net Assets = 100% LIABILITIES Accounts payable = 2% Notes payable = 23.55% Total = 25.55% Long term debt = 30% Common stock = 5% Retained earnings = 39.29% Total = 44.29% Total liabilities
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Name: Final Summer 2013 Ex. 198 Use the following information to perform the calculations below (using the indirect method). Clearly label the amount of each answer as positive or negative and show all your calculations. Net income $369‚000 Beginning accounts payable $119‚000 Depreciation expense 97‚000 Ending accounts payable 146‚000 Beginning accounts receivable 420‚000 Purchase of long-term assets 612‚000 Ending accounts receivable 439‚000 Issuance
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01 MCQ FOR IMT 57 – FINANCIAL ACCOUNTING Test : (Journal‚ Ledger‚ Trial Balance‚ Errors) Name: _________________ Fundamentals of Accounting Max. Marks: 30 1. RPC Ltd. follows the written down value method of depreciating machinery year after year by applying the principle of (a) Comparability. (b) Convenience. (c) Consistency. (d) All of the above. 2. A change in accounting policy is justified
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41 40 39 38 37 36 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Transaction costs that are directly attributable to the “issuance of new shares” should be: a. Expensed immediately b. Charged to retained earnings c. Deducted from equity d. Deducted from equity‚ net of related income tax benefit ANSWER D Deducted from equity‚ net of related income tax benefit Question # 2 End 45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 30 29 28 27 26
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Financial statement elements practice question Local council management of the city of Wonga Wonga has been discussing financial reporting requirements needed to satisfy accounting pronouncements. A matter of some concern is the appropriate treatment of houses built by the council on land owned by the local aboriginal community. The houses are currently used by the council to provide inexpensive accommodation for low-income earning families. Specifically‚ the council is considering whether or
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