www.studyguide.pk AS- Level Accounting Unit 2 Revision Notes Benstead Revision Notes: Types of Business Organisation: Sole Traders: Advantages: Faster decision making Independence Quicker and cheaper to establish All profits belong to the sole trader Competitors know less about the business’s success as the accounts don’t have to be published Disadvantages: Unlimited liability-can lose both business’s assets and their own personal possessions. Capital is limited to the wealth of
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Overview IAS 7 Statement of Cash Flows requires an entity to present a statement of cash flows as an integral part of its primary financial statements. Cash flows are classified and presented into operating activities (either using the ’direct’ or ’indirect’ method)‚ investing activities or financing activities‚ with the latter two categories generally presented on a gross basis. IAS 7 was reissued in December 1992‚ retitled in September 2007‚ and is operative for financial statements covering periods
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2014 Experiment No. 2 FLOW VISUALIZATION Objectives To study the flow lines and path lines in fluids mechanics (steady flow)‚ and investigate the influence of different shaped bodies on the flow. Apparatus Flow Visualization Unit‚ FM 22 (Figure 4). Hydraulic Bench‚ FM 110. Summary of Theory Timelines‚ Pathlines‚ Streaklines and Streamlines (Flow lines) In the analysis of problems in fluid mechanics‚ frequently it is advantageous to obtain a visual representation of a flow field. Such a representation
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making across the various functional areas of an organization Managerial accounting: the form of accounting concerned with providing information to managers for use in planning and controlling operations and for decision making Financial accounting: the form of accounting concerned with providing information to shareholders‚ creditors‚ and others outside the organization The work of managers and their need for managerial accounting information Every organization has managers – someone must be responsible
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How to Prepare a Bank Reconciliation Statement: To prepare the bank reconciliation statement‚ the following rules may be useful for the students: 1. Check the cash book receipts and payments against the bank statement. 2. Items not ticked on either side of the cash book will represent those which have not yet passed through the bank statement. 3. Make a list of these items. 4. Items not ticked on either side of the bank statement will represent those which have not yet been passed
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on their Accounting Information Systems? If a company has adequate security controls in place then they should not be held liable for losses sustained in a successful attack made on their Accounting Information System (AIS) by outside sources. If a company is negligent about security controls then they should be held liable for losses sustained in a successful attack on their AIS. There are a variety of sources that threaten accounting information
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Chapter 1 – Introduction to Financial Accounting Learning Objectives: After studying Chapter 1‚ you should be able to * Discuss the different classifications of financial transactions * Define an equity investor and a debt investor and understand the difference * Discuss the role of the Securities and Exchange Commission * Name the Big Four accounting firms and define the term “independent auditor” * Define corporate governance * Discuss GAAP and IFRS and the concept of
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CHAPTER 1 INTRODUCTION TO COST ACCOUNTING QUESTIONS 1. Management accounting stresses the informational needs of internal users over those of external users (the focus of financial accounting). Because of this perspective‚ management accounting provides information in a format that is flexible and relevant to a particular manager‟s usage. Financial accounting‚ on the other hand‚ must provide some uniformity in the manner in which information is presented for it to be comparable among companies and
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Missing Information in a Bank Reconciliation Survey of Accounting May 28‚ 2012 Missing information in bank reconciliation‚ the following data applies to Superior Auto Supply Inc‚ for May 2012. 1. Balance per the bank on May 31‚ $8‚000 2. Deposits in transit not recorded by the bank‚ $975 3. Bank error; check written by Allen Auto Supply was charged to Superior Auto Supply’s 4. The following check written an recorded by Superior Auto Supply
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sources of cash Sale of Assets and discontinued operations‚ Proceeds from long term debt‚ Major uses of cash CFO > NI? Major reasons for difference between CFO and NI Is CFO > Capex? Is CFO > Capex + Dividends? If CFO < Capex + Dividends‚ how did the company finance Capex + Dividends? Trend in Net Income Trend in CFO Trend in Capex Trend in major working capital accounts Overall assessment of the financial strength of the company CFO = Cash flow from operating
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