Chapter Four Test Bank Multiple Choice Questions 1. A city’s General Fund general ledger includes accounts called Estimated Revenues‚ Appropriations‚ and Encumbrances. This indicates that the city a. formally integrates its budget into its accounts. b. uses a cash plus encumbrances basis of accounting. c. maintains its accounts on an accrual basis. d. erroneously reports encumbrances as expenditures. 2. Legal authority to expend resources is adopted by a city council in the budgeting process. These
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References: Deloitte. (2007). IFRSs and US GAAP: A Pocket Comparison. Retrieved from http://www.iasplus.com/dttpubs/0703ifrsusgaap.pdf Financial Accounting Standards Board (FASB). (2010). Accounting standards codification TM. Financial Accounting Standards Board (FASB). Retrieved from http://aaahq
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Accounting Basics: Introduction Accounting is a glorious but misunderstood field. The popular view is that it’s mostly mind-numbing number-crunching; it certainly has some of that‚ but it’s also a rich intellectual pursuit with an abundance of compelling and controversial issues. Accountants are often stereotyped as soulless drones laboring listlessly in the bowels of corporate bureaucracies. But many accountants will tell you that it’s people skills‚ not technical knowledge‚ that are crucial to
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discuss the attributes of healthy and successful companies‚ and to explore the strengths and weaknesses of economic profit. Key learning points about economic profit include its dependence on the conventions of generally accepted accounting principles (GAAP) and its ignorance of strategic option value. • Evaluate the financial implications of rigorous competition and corporate transformation. Questions 1. What are the enabling and inhibiting factors facing the two firms as they pursue
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PREVIEW OF CHAPTER 4-1 4 Income Statement Usefulness Predicting future performance. 4-2 Evaluate past performance. Help assess the risk or uncertainty of achieving future cash flows. Income Statement Limitations Companies omit items that cannot be measured reliably. 4-3 Income is affected by the accounting methods employed. Income measurement involves judgment. Income Statement Quality of Earnings Companies have incentives
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reports requires some knowledge of accounting technology. (a) Identify the meaning of these accounting-related acronyms: GAAP‚ SEC‚ FASB‚ IASB and IFRS. (b) Briefly explain the importance of knowledge base or organization that is referred to each of the accounting-related acronyms. * (a) The meaning of accounting-related acronyms GAAP‚ SEC‚ FASB‚ IASB and IFRS: * GAAP: Generally Accepted Accounting Principle. * SEC: Securities and Exchange Commission. * FASB: Financial Accounting Standards
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Chapter 3 Audit Reports Review Questions 3-1 Auditors’ reports are important to users of financial statements because they inform users of the auditor’s opinion as to whether or not the financial statements are fairly stated or whether no conclusion can be made with regard to the fairness of their presentation. Users especially look for any deviation from the wording of the standard unqualified report and the reasons and implications of such deviations. Having standard wording improves
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Reporting Practices and Ethics Paper HCS/405 November 23‚ 2011 Reporting Practices and Ethics Paper This paper discusses the elements of financial management that is important to the healthcare organizations‚ generally accepted accounting principles‚ and a summary of the articles related to healthcare financial management. Elements of Financial Management There are four different elements used in financial management. These elements include: planning‚ controlling‚ organizing and directing
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accounted for as either a capital lease or an operating lease. I will be limiting my discussion to the accounting treatment of leases by the lessee. This paper will discuss the current accounting treatment for the two types of leases according to Canadian GAAP and will tie in elements of the conceptual framework to the treatment of leases from CICA handbook section 1000‚ followed by a discussion on accounting theories related to lease treatment‚ and finally current issues outlined in academic research concerning
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Table of Contents Particulars | Page number | Facts about FASB and IASB | 3 | Similarity and differences between FASB and IASB‚ Efforts to resolve differences in the standard between FASB and IASB‚ | 4 | Convergence of FASB and IASB | 5 | Issues | 6 | The needs of harmonization of internal accounting standards | 7 | Obstacles of harmonization of accounting standards‚ discussion and evaluation on whether it will be accepted by all users | 8 | Conclusion | 9 | Reference List |
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