Chapter 16 Managerial accounting concepts and principles 1) Direct costs are identified with and can be traced to a cost object. Indirect costs cannot be identified with or traced to a cost object. 2) Costs by function: A) Product costs consist of manufacturing costs: direct materials‚ direct labor and factory overhead. B) Period costs consist of selling and administrative expenses. 3) A) Prime costs which consist of direct materials and direct labor costs. B) Conversion costs which consist
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Collection Period) Accounting Principles and Concepts Business Entity - the business is seen as a separate entity from its owner(s). Going Concern – this concept assumes that the entity will continue to operate in the foreseeable future‚ unless there is a clear evidence to the contrary. The balance sheet and profit and loss account on the basis that the assets will not be liquidated but have a continuing value to the business. Periodicity – the final accounts of the company‚ i.e. income
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The Directive Principles of State Policy are guidelines to the central and state governments of India‚ to be kept in mind while framing laws and policies. These provisions‚ contained in Part IV of the Constitution of India‚ are not enforceable by any court‚ but the principles laid down therein are considered fundamental in the governance of the country‚ making it the duty of the State[1] to apply these principles in making laws to establish a just society in the country. The principles have been inspired
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The Accounting Cycle Accounting Cycle is an accounting process that involve a series of procedures in collection‚ processing‚ and communication of financial information. There are 7 basis steps of accounting cycle which comprise of source documents‚ prima entry‚ ledger‚ draft trial balances & financial statement‚ adjustments‚ adjusted trial balance & financial statement and closing entries. At first source documents‚ are things like invoice‚ credit note‚ debit note‚ cash bill
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DIRECTIVE PRINCIPLES OF STATE POLICY Q. 1. What are the Directive Principles of State Policy ? Ans. The Directive Principles of State Policy are those moral principles which are fundamental in the governance of the country. They are the instruments of instructions for the guidance of the rulers‚ both at the. Centre and the State levels‚ for the establishment of a just ond egalitarian society in India. Q. 2. What is the aim of Directive Principles of State Policy ? Ans. Their aim is to establish
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$ 53‚110.00 Bennett’s Home Renovations Balance Sheet December 31‚ 2011 Assets Cash $ 7‚700.00 Accounts Receivable 10‚080.00 Supplies 595.00 Equipment 71‚400.00 Insurance 3‚375.00 Total Assets $ 93‚150.00 Liabilities and Owners Equity Liabilities Accounts Payable $ 40‚040.00 Owner’s Equity J. Bennett Capital 53‚110.00 Total Liabilities and owner’s equity $ 93‚150
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Elements of a State (for municipal law purposes) 1) People – A group of person sufficiently numerous held together by a common bond 2) Territory – A definite area over which the State exercises sovereign jurisdiction 3) Sovereignty – Power of the State to regulate matters within its own territory. 4) Government – Institution organized and run in order to manage the affairs of the State Classification of governments 1) De jure – Government which is placed in power following legal / constitutional
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Q & T Explain what debit and credit mean. T For each of the following transactions of Dennen‚ Inc.‚ for the month of January 2015‚ indicate the accounts‚ amounts‚ and direction of the effects on the accounting equation. A sample is provided. a. (Sample) Borrowed $30‚000 from a local bank b. Lent $10‚000 to an affiliate; accepted a note due in one year. c. Sold 100 additional shares of stock with a par value of $.10 per share to investors for $500 cash. d. Purchased $15‚000 of equipment‚ paying $5000
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What are the advantages and disadvantages of principles-based accounting? Perhaps the primary benefit of principles-based accounting rests in its broad guidelines that can be applied to numerous situations. Broad principles avoid the pitfalls associated with precise requirements that allow contracts to be written specifically to manipulate their intent. A 1981 study sponsored by FASB found evidence that managers purposefully try to structure leases as operating leases to avoid incurring additional
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AAM 10. ACCOUNTING SYSTEM INFORMATION 10.010 State Accounting System 10.020 Authority for State Accounting System 10.030 Duplicate Records and System Changes 10.035 Archives and Records Management 10.040 Application and Interpretation of Manual 10.050 Disclosure of Criminal Acts 10.060 Deviation from Approved Financial Plans 10.070 Account Structure Maintenance 10.080 Code Assignment Policy 10.090 Legislative Fiscal Control 10.100 AKSAS
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