1121 theory Topic 1 BDA/inventory * Time period assumptions: firm would find it desirable to report their financial statements more frequently therefore the economic life could be divided into artificial time periods. * Why are adjusting entries required? The purpose of balance day adjustment is to recognise revenue and expenses in the relevant Period. * Compare and contrast the purposes of adjusting entries‚ closing entries and reversing entries The purpose of closing entry is
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1- Management Accounting in Context Budget Quantitative expression of a proposed plan of action by management for a specified period and an aid to coordinating what needs to be done to implement that plan Chartered Institute of Management Accountants International professional body of management accountants with members in 165 countries‚ including Australia Chief Financial Officer Executive responsible for overseeing the financial operations of an organisation. Also called financial director Control
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Accounting is a process of obtaining‚ recording‚ classifying‚ summarizing‚ reporting‚ interpreting and presenting financial information or communicating the results of the transactions to users to facilitate making financial decisions. Accounting often uses a term that defines what is happening to make the process easier to understand. For example‚ asset is known as the resources that owned by the company or controlled by the accounting entity for future economic value. Asset can be categorized in
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Past Events that have shaped the Present Kristy Schlak Axia College of the University of Phoenix Past Events that have shaped the Present Remembering our past is important; events that happened yesterday can shape next week or next year. The interesting thing about history is that it is not always recognized as important until much later. When Britain and France tried to appease Hitler with part of Czechoslovakia in 1938‚ the significance of giving into Hitler’s demands was not fully realized
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What is a theory? In this book we consider various theories of financial accounting. Perhaps‚ there¬fore‚ we should start by considering what we mean by a ’theory’. There are various perspectives of what constitutes a theory. The Oxford English Dictionary provides various definitions‚ including: A scheme or system of ideas or statements held as an explanation or account (description) of a group of facts or phenomena. Explanation or Account (description) of a group
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Accounting‚ or accountancy‚ is the measurement‚ processing and communication of financial information about economic entities. Accounting‚ which has been called the "language of business"‚ measures the results of an organization ’s economic activities and conveys this information to a variety of users including investors‚ creditors‚ management‚ and regulators. Practitioners of accounting are known as accountants. Accounting can be divided into several fields including financial accounting‚ management
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ukessays.com http://www.ukessays.com/essays/accounting/history-of-accounting-traces-to-ancient-civilizations.php History of Accounting -Traces To Ancient Civilizations Various attempts have been made to locate the place and time of the birth of the double-entry system resulting in various scenarios. Most of these scenarios recognize the presence of some form of record keeping in most civilizations dating back to about 3000 BC. Included are the Chaldean-Babylonian‚ Assyrian and Sumerian
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THE DEVELOPMENT OF ACCOUNTING THEORY a. Explain the meaning of the term accounting principles as used in the audit report. (Do not in this part discuss the significance of generally accepted.”) Answer: Before I dissect the term “accounting principle‚” I first want to provide a brief definition of (1) accounting and (2) a principle. Accounting is the systematic recording‚ reporting‚ and analysis of financial transactions of a business and a principle is a rule or ethical standard. The definition
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Financial accounting and management accounting both prepare and analyze financial data. However‚ certain aspects of these two fields are very different. This article discusses the various differences between financial accounting and management accounting. The differing characteristics to be discussed include the users of information‚ the types of information‚ regulatory oversight‚ and frequency of reporting. Users of Information Financial accounting and management accounting provide information
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Question 1 The differences between managerial accounting and financial accounting can be distinguished through 5 aspects: a) Primary Users of Reports In managerial accounting‚ the information will be use within the organization‚ by the employees and managers‚ where else in financial accounting‚ the information in the reports will be used by external parties such as banks‚ creditors and shareholders. b) Types and frequency of the reports. In managerial accounting‚ the information is reported
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