profit. Income refers to the increase in economic benefit during the accounting period in the form of inflow or enhancement of assets or decrease of liabilities that result in increase in equity. There are two types of income. First‚ sales revenue refers to income earned in the course of business activity for example a coffee house selling coffees. Second‚ gain refers to income that does not arise from the
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ACCOUNTING CLERK Wes Ruiz Ms. Cline Accounting 20 October 2011 In this paper I will be telling you about a job of an accounting clerk. The scope of an accounting clerk’s job duties often depends upon the size of the company or organization that he works for. For example‚ small businesses tend to hire “general bookkeepers” to handle all of the financial transactions and record keeping requirements of the business. Essentially‚ a bookkeeper
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Creative Accounting Creative accounting is a term that often implies illegal or fraudulent practices in the U.S. (Moneyterms‚ 2006). The objective of the following paragraphs is to explore some definitions of creative accounting from different perspectives‚ discuss some advantages and disadvantages of creative accounting‚ and explain a real life example of creative accounting. Through these paragraphs I hope to also touch upon some of the ethical issues involved in engaging in creative accounting practices
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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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Budget and Responsibility Accounting Budget Meaning Budget is a financial and/or quantitative statement‚ prepared and approved prior to a defined period of time‚ of the policy to be pursued during that period for the purpose of attaining a given objective. * CIMA Official Terminology It is a plan quantified in monetary terms‚ prepared and approved prior to a defined period of time‚ usually showing planned income to be generated and/or expenditure to be incurred during that period
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|Term-Concepts |Definition | |Purpose of Accounting |Communicating financial information to end users so they can make informed decisions. | |Accounting Entity |The financial affairs of the business are separate and distinct from the financial affairs of the owner. | |Monetary Concept |All transactions are recorded in
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used creative accounting to portray that the company’s profit were increasing when it fact it was making losses during the period 2000 – 2002 Creative accounting can be refers to accounting practices that seem to follow the applicable accounting standards but differ from the essence of those standards. It use the accounting methods to hide some elements of company’s financial dealings in order to make the company appears more successful that it is in reality. Creative accounting also can be describe
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3101AFE Accounting Theory and Practice Tutorial Questions for Tutorials 1- 6: Semester 2 2014 TUTORIAL 1 - Semester 2 2014 Deegan Topic 1: Introduction to financial accounting theory QUESTION 1 - Question 1.8: What is the difference between developing a theory by induction and developing a theory by deduction? QUESTION 2 - Question 1.9: Is the study of financial accounting theory a waste of time for accounting students? Explain your answer. QUESTION 3 - Question 1.26: Would you
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external users 4. FASB – responsible for GAAP (accounting principles) 5. Accounting Equation 6. Know the 3 activities that business engage in and give examples of each activity. (These 4 questions also relate to Chapter 12‚ The Statement of Cash Flows) 7. The International Accounting Standards Board is responsible for developing a single set of worldwide accountings standards (IFRS). 8. These standards will help companies to reduce accounting costs‚ make it easier to acquire foreign companies
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of an organized system to replace the existing hodgepodge of record-keeping. QUESTION 2 Islamic accounting can be defined as the “accounting process” which provides appropriates information (not necessarily limited to financial data) to stakeholders of entity which will enable them to ensure that the entity is continuously operating within Islamic Sharia’ ah while “conventional” accounting can be defined to be the identification‚ recording‚ classification‚ interpreting and communications economic
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