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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Q1 Definition of ’Accounting Information System - AIS’ The collection‚ storage and processing of financial and accounting data that is used by decision makers. An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources. The resulting statistical reports can be used internally by management or externally by other interested parties including investors‚ creditors and tax authorities. Investopedia
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Financial accounting is one kind of accounting different from the management accounting in the accounting system. As management accounting is for “internal” whereas financial accounting is for “external”. The following is a detailed explanation and analysis of the major objective and role of financial accounting. The purpose of financial accounting is to measure the performance of the entity and therefore provides the financial information to different stakeholders. Stakeholders will have their
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Limitations of Financial Accounting: Financial accounting is the only branch of accounting and it is not perfect. There are large numbers of limitations which open new way to use other tools of accounting. To know what are the main limitations of financial accounting. It is very necessary for accountants. Accountants are often blind to these limitations. So‚ I am covering its limitation a lot of ground. Read below and understand:- 1. Financial accounting is of historical nature Net effect
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Handout Problem (For the second assignment) You just turned 35 years old and you are looking to save for retirement. You are planning on making yearly deposits starting next year for the next 30 years (a total of 30 annual deposits with the first deposit occurring on your 36th birthday and the last deposit on your 65th birthday). One year after you make your last deposit‚ you will begin making withdrawals to fund your living expenses. Since your current yearly expenses are $45‚000‚ you expect
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Learning Task Number Four The Henry Furniture Co. is a new company and has numerous fixed assets that need to be depreciated. You can help Henry by determining the depreciation rates for the assets and the amount of depreciation for year one. The assets were purchased at various times during the year (hint: watch out for the dates). The following assets will be held by the company for at least the next two years (In other words‚ year two will be a full year for all of the assets). Please fill
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1. The accounting process involves all of the following except a. identifying economic transactions that are relevant to the business. b. communicating financial information to users by preparing financial reports. c. recording nonquantifiable economic events. d. analyzing and interpreting financial reports. 2. Financial accounting provides economic and financial information for all of the following except a. creditors. b. investors. c. managers. d. other external users. 3.
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TITLE: FOUNDATIONS OF ACCOUNTING COURCE CODE: MAC101 DUE DATE: 12th September LECTURER: Ms.Chirima ASSIGMENT Nr. 1 - Accounting Information Date‚ 10th September‚ 2014 Introduction “The users of the accounting information”. According to the author Horngren‚C .Introduction to management accounting‚ the list of the people who use the accounting information is infinite. But even
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No. 2 2007 Accounting Information Qualitative Characteristics Gap: Evidence from Jordan Ahmad N. Obaidat Tafila Technical University‚ Tafila‚ Jordan [Abstract] The general objective of financial reporting is to provide useful information to present and potential investors‚ creditors‚ and others to help them make investment‚ credit‚ and other decisions. The purpose of this paper is to find out whether there is an existing gap concerning the importance of accounting information qualitative characteristics
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Managerial Accounting Chapters 11-13 Chapter 10 – 3 Relevant costs are costs that are avoidable by choosing another alternative. If a variable cost differs between alternatives in a decision‚ than it is relevant; however‚ it is not necessarily true that ALL variable costs are relevant. Chapter 10 – 7 Prentiss would need to isolate the unavoidable costs of the product line first. A decision of whether a product line or other segment should be dropped should focus on the differences in the
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