8/4/13 Chapter 1 Results 36% (9 out of 25 correct) Responses to questions are indicated by the symbol. 1. Corporations generally receive more favorable tax treatment than sole proprietorships and corporations. A. True B. False Correct! Sole proprietorships and partnerships generally receive more favorable tax treatment than corporations. 2. Which is not one of the three forms of business organization? A. Sole proprietorship B. Creditorship C. Partnership D. Corporation This
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Promotions and Price Cuts 4. Loss of Customers to cheap retailers with worse customer service Possible Solutions suggested by the various top level employees: Morris Meyers (CFO): 10% workforce reduction to generate enough profits‚ proposed FIFO (First in first out) policy. He suggested early retirement package to old employees. Lisa contradicted him by sighting an example of Meese Brothers‚ where they had to give compensation on 18 million dollars for getting rid-off the deadwood. Lisa
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Summary on Research for Accounting Changes and Error Analysis Companies have always faced issues of how to reflect changes in accounting methods and error corrections in financial statements. A change in accounting principle results when an entity adopts a generally accepted accounting principle different from the one it used previously (Hall 2007). A presumption exists that an accounting principle once adopted shall not be changed in accounting for events and transactions of a similar type (Financial
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approximately the same under different inventory costing methods and the choice of method does not materially affect net income. To see this‚ remember that FIFO profits include holding gains on inventories. If the inflation rate is low (or inventories turn quickly)‚ there will be less holding gains (inflationary profit) in inventory. Q6-3. FIFO holding gains occur when the costs of earlier inventory p are matched against current selling prices. Holding gains on inventories increase with an increase
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Centre for Tourism‚ Hospitality and Culinary Management Programme: Diploma in Hotel Management / Diploma in Tourism Management / Diploma in Events Management / Diploma in Culinary Management Subject: Principles of Accounting (DAC 2014) August – December 2013 Elearn Password: DAC2014 Turnitin ID: 5710730 Turnitin Password: DAC2014 Lecturer: Mr Peter Pang Consultation Hours: (My time table will be on Elearn) E-mail: peterpang@sunway.edu.my Tel No: 03 7491 8622
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when using either GAAPs. With that mentioned‚ the following differences exist between the US GAAP and IFRS (International GAAP). Inventory Measurement GAAP clarifies that inventory value is measured based on FIFO‚ LIFO and weighted average method‚ but IFRS does not allow the use of LIFO method. Recognition of Revenue from Services GAAP accepts the money as revenue when total services are provided and contract of services is completed‚ however if there is work pending under the service contract
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Budgeting 9 1.1 Advantages of Budgeting 9 1.2 Disadvantages of budgeting 9 2. Fixed Budgets 9 2.1 Flexible Budgets 9 2.2 Zero- base Budgets 10 2. Learning Outcome 2&4 11 Conclusion 12 References 13 List of Tables Table 1: FIFO Store Ledger 8 Table 2: LIFO Store Ledger 8 Table 3: Receivables 10 Table 4: Payables 10 Table 5: Cash Budget 11 Introduction Management accounting costing and budgeting is looking at the cost information‚ both present and future‚ of businesses and gather
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CHAPTER 6 Objectives Identify different types of long-term operational assets. Determine the cost of long-term operational assets. Explain how different depreciation methods affect financial statements. Determine how gains and losses on disposals of long-term operational assets affect financial statements. Explain how expense recognition for natural resources (depletion) affects financial statements. Explain how expense recognition for intangible assets (amortization) affects
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A. Sales discount E. FOB shipping point H. Purchase discount B. Credit period F. Gross profit I. Cash discount C. Discount period G. Merchandise inventory J. Trade discount D. FOB destination 1. Goods a company owns and expects to sell to its customers. G 2. Time period that can pass before a customer’s payment is due. B 3. Seller’s description of a cash discount granted to buyers in return for early payment. A 4. Reduction below list or catalog price that is negotiated in setting the
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GAAP vs IFRS Diffen › Economics › Business › Business Finance › Accounting GAAP (US Generally Accepted Accounting Principles) is the accounting standard used in the US‚ while IFRS (International Financial Reporting Standards) is the accounting standard used in over 110 countries around the world. GAAP is considered a more “rules based” system of accounting‚ while IFRS is more “principles based.” The U.S. Securities and Exchange Commission is looking to switch to IFRS by 2015. What follows
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