Intermediate Accounting II – Professor Iskander Chapter 21 – Statement of Cash Flows Revisited Exercise 21-15 Preparing a Complete Statement of Cash Flows Sunnyvale Corporation prepared the following balance sheet data for 2013 and 2012: Dec. 31‚ 2013 Dec. 31‚ 2012 Cash and cash equivalents . . . . . . . . . . $ 518‚500 $ 675‚000 Accounts receivable . . . . . . . . . . . . . . . . 360‚000 345‚000 Merchandise inventory . . . . . . . . . . . . 750
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In 1973‚ the Financial Accounting Standards Board (FASB) was created and their mission is “to establish and improve standards of financial accounting and reporting for the guidance and education of the public‚ including issuers‚ auditors‚ and users of financial information.” (FASB.org‚ 2009a). The FASB is a private‚ not-for-profit organization whose primary purpose is to develop generally accepted accounting principles (GAAP) within the United States. The Securities and Exchange Commission (SEC)
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2011 Semester 2 Intermediate Financial Reporting Final Exam Solution. Accounting standards (5 MARKS) 1. Explain what gives Australian accounting standards authority and how is it enforced? The Corporations Act gives the standards the force of law. ASIC administer the Corps Act. and hence enforce the standards. Failure to comply with the standards can include legal proceedings‚ goal‚ financial penalties and prevention from acting as a manager or director of a company in the future. In addition
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Assignment 5-1 Requirements 1 and 2 a) Investing activities - cash paid for capital asset (18‚000) b) Financing activities - borrowed money 46‚000 c) None; non-cash transaction d) Financing activities - repaid note payable (200‚000) Cash flow for interest ($7‚800) should be represented by interest expense and is separately disclosed as a cash outflow as part of operating activties‚ unless the company has decided it is a financing flow. e) Operating activities - decrease in wages payable
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CHAPTER 1 THE CANADIAN FINANCIAL REPORTING ENVIRONMENT Multiple Choice—Conceptual Answer No. Description d 1. Accounting characteristics. a 2. Nature of financial accounting. c 3. Definition of financial accounting. a 4. Financial reporting entity. d 5. Efficient use of resources. d 6. Capital allocation process. c 7. Assessing management stewardship. c 8. Objectives of financial reporting. a 9. Role of AcSB. c 10. Body responsible for setting GAAP. b 11. Preparation of biased information
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searching for these objectives‚ it was stated that there was a superseding of the amendment. The addition stated “comparability and consistency in accounting for transferred financial assets will also be improved through clarifications of the requirements for isolation and limitations on portions of financial assets that are eligible for sale accounting.” In other words‚ financial statements will become more accurate and less fraudulently represented to users and the objective is not to double count
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BRIEF EXERCISE 4-1 STARR CO. | Income Statement | For the Year 2012 | Revenues | | | Sales revenue | | $540‚000 | | | | Expenses | | | Cost of goods sold | | $330‚000 | Salaries and wages expense | | 120‚000 | Other operating expenses | | 10‚000 | Income tax expense | | 25‚000 | Total expenses | | 485‚000 | | | | Net income | | $55‚000 | | | | Earnings per share | |
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HW 10% MT 45% Final 45% HW is submitted electronically on the following Tuesday Financial accounting: (1) Investor—outside the company (2) Creditor—outside the company (3) Management—inside the company Different points of view (1)-–whether the investment is worthwhile (2)—whether they can get the money back (3)—prepare the financial statement and would not want to share every information with investors/creditors; but investors and creditors want to know the truth—accurate financial data
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ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics 1. 2. 3. 4. 5. 6. Conceptual framework– general. Objectives of financial reporting. Qualitative characteristics of accounting. Elements of financial statements. Basic assumptions. Basic principles: a. Measurement. b. Revenue recognition. c. Expense recognition. d. Full disclosure. Accounting principles– comprehensive. Constraints. Assumptions‚ principles‚ and constraints. 28‚ 29‚ 30 10 11 Questions 1‚ 7 2 3‚ 4‚ 5‚ 6‚ 8 9‚ 10‚ 11 12‚ 13‚ 14 15‚ 16‚ 17
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The following selected transactions relate to contingencies of Eastern Products Inc. which began operations in July of Year 1. Eastern’s fiscal year ends on December 31. Financial statements are published in April of Year 2. Required: Prepare the appropriate journal entries that should be recorded as a result of each of these contingencies. If no journal entry is indicated‚ state why. 1. No customer accounts have been shown to be uncollectible as yet‚ but Eastern estimates that 3%
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