MANAGEMENT AND ACCOUNTING DEPARTMENT OF ACCOUNTING SUBJECT: ACCOUNTING THEORY AND PRACTICE PREPARE FOR: DR.NORHAYATI MAT HUSIN PREPARE BY: NUR FADZILAH BT NORIZAN (AC086628) NUR IZYAN BT MOHD ISHAK (AC086934) NURUL AQILAH BT ZAMRI (AC085167) THILAGA SEGARAN (AC086628) BACHELOR IN ACCOUNTING (HONS) CASE 1: WASTE MANAGEMENT a) Define the matching principle and explain why it is important to users of financial statements
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paid on a factory building are examples of manufacturing overhead. True False 3. Manufacturing overhead combined with direct materials is known as conversion cost. True False 4. All costs incurred in a merchandising firm are considered to be period costs. True False 5. Depreciation is always considered a product cost for external financial reporting purposes in a manufacturing firm. True False 6. In external financial reports‚ factory utilities costs may be included in an asset account on the balance
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ACCOUNTING 592 Financial Accounting & Reporting Seminar Spring 2010 Instructor: Office Hours (subject to adjustment): Teresa Gordon Office Hours: W 8:30–11:00 AM Albertsons Bldg. 118 and T‚W‚Th 1:15 - 3:00 PM 885-8960 or by appointment E-mail: tgordon@uidaho.edu Course web page: http://www.cbe.uidaho.edu/Acct592 ------------------------------------------------- MASTER OF ACCOUNTANCY – LEARNING GOALS ------------------------------------------------- -------------------------------------------------
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In recent years‚ the range of accounting application is expanding rapidly‚ along with the increasing demand of economic market. As is well known‚ accounting is a key aspect of business. And in the accounting profession‚ there has been already existed interpenetration and overlapping among the different kinds of accounting. Cost accounting and financial accounting are two main components of accountancy. The former one is a part of accounting. In cost accounting‚ it dramatically researches the variable
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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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unreliable in nature or representation that its recognition may be potentially misleading. Constraints -Timeliness -Balancing cost and benefit – Financial information will be sought if the benefit to be derived from the information exceeds its costs. Para 44 -Benefit derived from its information should exceed the cost of providing it General Purpose Financial Reporting Objective SAC 2 – focus on providing info to meet the common info need of users who are unable to command the preparation of reports
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Managerial Accounting What Does Managerial Accounting Mean? - The process of identifying‚ measuring‚ analyzing‚ interpreting‚ and communicating information for the pursuit of an organization’s goals. This is also known as "cost accounting." - Managerial accounting is used primarily by those within a company or organization. Reports can be generated for any period of time such as daily‚ weekly or monthly. Reports are considered to be "future looking" and have forecasting value to those within
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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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Reading 1.2 - Accounting theory and development Accounting Theory Construction with Inductive and deductive approach Deductive approach vs. Inductive approach in accounting theory construction Deductive reasoning entails a valid argument in which it is impossible to assert the premises and to deny the conclusion without contradicting oneself. Deductive approach to accounting theory construction begins with establishing the objective of accounting. Once identified‚ definitions and assumption
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Positive Accounting Theory • Sometimes abbreviated as PAT • Explains and predicts accounting practice • Does not seek to prescribe particular actions • Grounded in economic theory • Focuses on the relationships between various individuals involved in providing resources to an organisation (agency relationship) • Owners and managers • Managers and debt providers Positive Accounting Theory • Assumptions of PAT • All individual action is driven
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