and expenses. The income statement begins with revenues followed by a list of expenses. U.S. GAAP and IFRS requirements for the presentation of income statements are similar‚ with some important differences. *Other than separating revenues from expenses‚ U.S. GAAP provides little guidance about which items the firm must separately display or their order. IFRS requires‚ at a minimum‚ the separate display of revenues‚ financing costs (for example‚ interest expense)‚ income tax expense‚ profit
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company in the U.S. today. This company has managed to survive “one of the most egregious accounting frauds we have seen” said Thomas C. Newkirk of the SEC. This accounting scandal lasted from 1992 to 1997 and was the result of numerous improper expense adjustments to inflate Waste Management’s earnings. They also incorrectly recorded liabilities‚ depreciation‚ salvage value of assets and the useful life of those assets to meet projected earnings. Buntrock was the driving force of the scandal. He
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prospect in the way the asset is used. Depreciation is to be treated as an estimated expense that does not set aside cash for the replacement of a non-current asset. In determining the cost of acquisition of the lathes‚ any capital expenditure made must be added to the purchase price of the lathes. This amount will be considered as the historical cost and will be used in calculating the depreciation expense Depreciation is the allocation of the cost of a non-current asset less its estimated
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inflation in fiji COLLEGE OF BUSINESS‚ HOSPITALITY AND TOURISM STUDIES DEPARTMENT OF ACCOUNTING ACC501: COMPUTERISED ACCOUNTING MAJOR GROUP ASSIGNMENT: 15% Trimester 1‚ 2013 Total Marks: 50 Due Dates: 2nd April‚ 2013 Instructions: 1. You are required to do this assignment in pairs (2 people) and submit one copy of assignment on due date‚ (2/04/2013). 2. Any assignment submitted after due date will not be marked. 3. Students unable to find group partners should inform unit
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© The Hong Kong Polytechnic University T HE H ONG K ONG P OLYTECHNIC U NIVERSITY SCHOOL O F A CCOUNTING AND FINANCE Final Examination Programme BBA (Hons) in Accountancy (02002-BAC) BBA (Hons) in Accounting and Finance (02002-BAF) BBA (Hons) in Financial Services (02002-BFS) BBA (Hons) in Management (02002-MGT) BBA (Hons) in Marketing (02002-MKT) BBA (Hons) in Global Supply Chain Management (02002-GSC) (02004-GSC) (02004-IST) BBA (Hons) in International
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NeedsLease entered into a ten-year operating lease for office space in accordance with ASC 840‚ Leases. It has neither renewal option nor the ability to negotiate for renewal per lease agreement. Within the leased premise‚ NeedsLease has placed into service various leasehold improvements that have economic useful lives of 12 years. In the lease agreement‚ there are certain provisions that may require the lessee to perform certain activities and to incur certain costs at the end of the lease
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a. Both the direct and indirect methods will produce the same cash flow from operating activities. True statement; the indirect approach is an alternative method for preparing the statement of cash flows for the direct method. b. Depreciation expense is added back
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AC505 Course Project Hints: The beginning cash balance for April‚ is the cash from March 31 in the Asset section of the balance sheet. In the merchandise purchases budget‚ in April‚ we need 50% of March purchases (that amount is also given to us 3/31 Accounts payable of $100‚000 on page 415). Therefore‚ Total cash disbursements for April is (50% x $316‚000 April purchases) + ($100‚000 remaining March purchases to be paid) = $258‚000. Class‚ Here are some hints. Lets start from the beginning:
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Accounts Receivable $150‚000 $150‚000 (To record merchandise returned) 3 Cash Accounts Receivable $3‚100‚000 $3‚100‚000 (To record collection of accounts receivable) 4 Bad Debt Expense Allowance for Doubtful Accounts $92‚000 $92‚000 (To record uncollectible accounts) 5 Accounts Receivable Allowance to Doubtful Accounts Cash Accounts Receivable $28‚000 $28‚000 $28
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between organizations that use a certain method. Accrual accounting is mostly used by organizations that are for profit. Accounts using this method are prepared with financial transactions accrued. Organizations using this method report revenues and expenses in the accounting period their economic substance is realized‚ not the period they are received or paid for in cash. An example would be a patient is billed $240 for an office visit. The amount billed is reported in the accounting period it was billed
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