Case 3-6 Accounting Standards A. Given the income statement effects of LIFO versus FIFO‚ how will the balance sheet inventory amounts differ between General Motors and Ford versus Honda and Daimler-Benz? In other words‚ will inventory be reported amounts representing recent costs or older historical costs? In your opinion‚ which balance sheet amounts would be more useful to financial statement users in making decisions to buy or sell shares of a company’s stock? Inventory is an asset that
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Accounting Memo Irene Emond BCOM/230 July 14‚ 2014 Jay Johnson Accounting Memo When creating a memo‚ the first thing to do is to know and identify your purpose and your audience. Failing to know your audience can result in misinterpretation‚ needing more clarification or being altogether ignored. Considering your audience is a must‚ as it falls under the same category as knowing the purpose of your memo. Upon reviewing the given example‚ I would suggest using the commonly accepted format. The first
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“certificate of achievement for excellence in financial reporting” by the Government Finance Officers Association? What is the significance of this award? Yes‚ it is significant because it is the highest form of recognition in the area of governmental accounting and financial reporting‚ and its attainment represents a significant accomplishment by a government and its management. (Page 13) b) What are the key issues addressed in the letter of transmittal? Major initiatives in the city of Charlotte
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costs Labor costs of assembly-line workers $110‚000 – Direct labor Sales commissions $35‚000 – Period costs Factory supplies used $13‚000 – Direct materials Salaries paid to sales clerks $50‚000 – Period costs (b) Explain the basic difference in accounting for product costs and period costs. Product costs are manufacturing costs‚ direct components‚ direct labor and manufacturing overhead‚ do not become expenditures until the company sells inventory. Period costs are non-manufacturing costs‚ including
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‘Between the years 1900-1913‚ it was the Kaiser Wilhelm who really controlled German domestics’ policies’. How far do you agree with this judgement? From the 1900-1913 Kaiser Wilhelm‚ the elites and the pressure from below all had a say in the domestic policies that controlled Germany. Although some theories suggest that only one of them had the greater power. The statement suggests the Kaiser did but I will examine two other theories as well as the Kaiser. The other theories are pressure from
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function or item of equipment in respect of which cost are ascertained. 2. Define cost accumulation and cost assignment Cost accumulation refers to the process of collecting cost data through an accounting system. Usually costs are collected under general ledger accounting headings‚ which follow natural classifications‚ such as materials‚ labour‚ power‚ electricity‚ fuel etc. Cost assignment is a general term used to cover 1. Tracing of costs to cost objects‚ 2. Apportionment of
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The lecture last night discussed accrual accounting concepts such as timing issues‚ and the basics of adjusting entries. The discussion went into more detail on periodicity assumption and how accounting divides the economic life of a business into artificial time periods. These time periods are generally a month‚ a quarter‚ or a year‚ now whether it is a fiscal year or a calendar year that is determined by the company itself. The lecture then reviews the revenue recognition principle which expects
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References: Warren‚ C.‚ Reeve‚ J.‚ and Duchac‚ J (2007). Accounting. 23rd ed South-Western‚ cengage learning in thousands except share data | January 3‚ 2009 | December 29‚ in thousands except share data | December 29‚ 2007 | December30‚
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Accounting for Managers TOPIC A: AN INTRODUCTION TO ACCOUNTING Investors – Individual and groups provide initial capital. Creditors – Company which loans money to another company (Suppliers/Bank). Managers – Oversee the day-to-day operations. What is accounting? * Process of Recognising‚ measuring‚ recording (also known as transactions)‚ disclosing and attesting to information. *Information – Decision Making (Value Creation)‚ Control (Monitoring). Process of Accounting: Transactions
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14 Accounting publications and research in twentieth-century Japan1 14.1 Introduction Japan’s interest in modern accounting began in the late nineteenth century with Alexander Shand [1844–1930].2 The Japanese translation of Shand’s (1873) Bank bookkeeping proved to be so important that his system of bank accounting became legally obligatory for the newly established banking system of the Meiji era. In the same year‚ Fukuzawa (1873–74) published a Japanese translation of Bryant and Stratton’s (1871)
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