1. Two primary external users of accounting information are investors and creditors. TRUE 2. The economic resources that are owned by a business are called stockholders’ equity. FALSE 3. Net income for the period is determined by subtracting total expenses and dividends from revenues. FALSE 4. The heading for the income statement might include the line “As of December 31‚ 20xx.” TRUE 5. Net income is another term for revenue. FALSE 6. The primary purpose of the statement of cash
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1‚ a parameter is a special kind of variable‚ used in a subroutine to refer to one of the pieces of data provided as input to the subroutine.[1] These pieces of data are called arguments. An ordered list of parameters is usually included in the definition of a subroutine‚ so that‚ each time the subroutine is called‚ its arguments for that call can be assigned to the corresponding parameters. Just as in standard mathematical usage‚ the argument is thus the actual value passed to a function‚ procedure
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of 2011 are the conversion of debt and equity‚ leases‚ consolidations‚ and financial instruments. The next paragraph underlines some of the key differences between GAAP and the IFRS. IFRS outlaws LIFO (last in first out) inventory valuation where GAAP uses both FIFO (first in first out) and LIFO. Property‚ plant and equipment are assets that are valued differently using IFRS. The IFRS allows revaluation of assets were GAAP uses cost as its valuation method. Intangible assets cannot be revaluated
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MA932 Financial Statements Analysis Coursework 1 1. The circumstances in which the revaluation model may be used: (In accordance with IAS 38) There is active market‚ since the fair value of an intangible asset must be determined by reference to an active market in that type of asset. Sufficient regularity to ensure that the carrying amount of an intangible asset does not differ materially from fair value A. The 25000 revaluation decrease on 31 December 2011 should be recognized as an expense
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PART I MULTIPLE CHOICE QUESTIONS Use the following information for questions 1-4: Seasons Construction is constructing an office building under contract for Cannon Company. The contract calls for progress billings and payments of $1‚240‚000 each quarter. The total contract price is $14‚880‚000 and Seasons estimates total costs of $14‚200‚000. Seasons estimates that the building will take 3 years to complete‚ and commences construction on January 2‚ 2014. 1. At December 31‚ 2014‚ Seasons estimates
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Things I remembered from school are the concept of time value of money‚ the calculation of the percentage of completion‚ making journal entries and adjusting entries‚ the differences between accrual basis of accounting and cash basis of accounting‚ LIFO&FIFO methods‚ basic financial statement preparation‚ and estimating bad debts expense: estimation of sales and estimation of account receivable.
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conduct a physical inventory count by using the gross profit percentage and the retail inventory method. The retail inventory method converts retail prices to cost. The different versions of the retail method are last in first out (LIFO) and first in first out (FIFO) and returns slightly different results. It is important for investors to understand the estimation method because the net income differs. Companies conduct physical inventory counts to record shortages‚ as a result of theft or breakage
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Abbreviations |B.P. Bond Payable |PIC Paid In Capital.| |C.S. Common Stock |APIC Additional PIC | |CSE Common SE |PMR Profit Margin | |EOF End of |Ratio | |Financing (Period) |PV Present Value | |FV Future Value |R.E. Retained | |IE Interest Expense|Earnings | |I.S. Income |S.H. ShareHolder | |Statement |S.E. ShareHolder | |FS Financial |Equity | |Statements |SYD Sum of the | |LCM
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CHAPTER ONE INTRODUCTION 1.1 Background of the Study Resources are scarce; profit making organization should know how to utilize these resources effectively and efficiently. The inventory control section of a company is responsible for these activities‚ in order to continue the operation of the organization through out the year they have to use the rules and principles to handle different kinds of materials. Since it improves inventory handling activities with in the organization‚ it will help
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In the global business arena‚ there are two main institutions whose accounting standards are used for financial reporting‚ Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS). The IFRS‚ whose rules are established and maintained by the International Accounting Standards Board (IASB)‚ is the most widely used of the two institutions but the primary choice for the United States continues to be GAAP‚ whose standards are established and maintained
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