Checkpoint: Accrual Method •Nonprofit organizations are required to produce financial statements based on the accrual method of accounting. How is this different from the cash basis of accounting? Why is accrual accounting important? Cash basis accounting‚ for example when you ship goods out of your business to customers and they have receipt but have not received the cash‚ means that you may have not booked the revenue. Accrual accounting is more accurate with the timing of reported revenue
Premium Generally Accepted Accounting Principles Income statement Non-profit organization
how these transactions appear on an income statement and a balance sheet as well as to interpret reasons why the cash position for the business does not equal to the profit for the period. By showing the spreadsheet‚ two financial statements and looking into theories of matching principle‚ prepayments and accruals‚ provisions(bad debts and depreciation)‚ it is not hard to distinguish the cash flow from the profit. Content It is vital to understand the cash position and the profit do not necessarily
Premium Balance sheet Generally Accepted Accounting Principles Depreciation
Business and Transfer Taxes Notes Estate Tax Basic Terms in Taxation Taxation – power of the Government to impose burden upon the people to earn Revenue. Right – The basics of human existence.Those things that are Necessary to live. You cannot live without these. Eg. Right to breathe‚ right to live‚ right to vote‚ Freedom of speech. Etc. 3 Inherent Powers of the State ( definition: Acaylar‚ PJ) 1. Police Power – power to monitor people for the general welfare. 2. Eminent Domain – power
Premium Tax Taxation in the United States Property law
Cash and Cash Equivalents Cash This includes money and other negotiable instrument that is payable in money and acceptable by the bank for deposit and immediate credit. Examples are bills and coins‚ checks‚ bank drafts and money orders. To be included or considered as cash‚ it must be unrestricted as to use‚ meaning‚ it must be readily available for use or payment of current obligations‚ thus‚ not subject to contractual or legal restrictions. The following items are included in “cash”:
Premium Generally Accepted Accounting Principles Asset Balance sheet
Tax Definition: 1. A fee charged ("levied") by a government on a product‚ income‚ or activity 2. A financial charge or other levy upon a taxpayer (an individual or legal entity) by a state such that failure to pay is punishable by law Types of Tax: If tax is levied directly on personal or corporate income‚ then it is a direct tax. If tax is levied on the price of a good or service‚ then it is called an indirect tax. Who collects tax? There is a major organization working to safeguard
Premium Tax Value added tax
home office. Typically‚ after satisfying all the rules of probate in a formal probate process‚ the executor will close the estate. As a result‚ the executor becomes an acting executor responsible for closing tasks as described in the article Estate Income Tax Returns: Review and File the Returns. In the end‚ the one closing task an acting executor likes is the final task: the task to close the temporary home office. Close the Temporary Home Office The task of closing the temporary home office signals
Premium Management Employment Termination of employment
biggest risk. As the investment carries substantial upfront costs and for length of time I own the property‚ expenses can be high. The risk may be higher for this particular home as it has been listed for a number of months with a number of times where they lowered the price. Suggesting the perceived market value of the home to be less than what it is listed for. This may give reason as to why the house is no longer listed‚ but was not sold. However‚ homes in the area have been sold for a large range making
Premium Real estate Debt Marketing
Principles and Processes of Government Budgeting | Sin Taxes‚ Good or Bad? | An Examination of the Use of Sin Taxes in the United States | By: Stacy Madden4/27/2012 | Executive Summary Historically sin taxes have been an effective and efficient way for the government to raise revenue. The federal government used tariffs and consumption taxes to generate almost all of its revenue in the early years of our nation. The tax structure and philosophy has evolved and changed since the
Premium Tax Taxation
ARTICLE REVIEW OF DO EARNINGS REPORTED UNDER IFRS TELL US MORE ABOUT FUTURE EARNINGS AND CASH FLOWS? AUTHORS: T.J. Atwood Accounting Department‚ College of Business‚ Florida State University‚ United States. Michael S. Drake Department of Accounting and MIS‚ Fisher College of Business‚ The Ohio State University‚ United States. James N. Myers and Linda A. Myers Department of Accounting‚ Sam M. Walton College of Business‚ University of Arkansas‚ United States. JOURNAL: Elsevier Journal of
Premium International Financial Reporting Standards Financial statements Generally Accepted Accounting Principles
Teaching Note on How the Earnings Management Teaching Module Can Be Taught Teaching Aims of the Module The Earnings Management Teaching Module is designed to help faculty teach how companies might manipulate earnings to maximize revenues‚ minimize expenses‚ and/or create reserves by setting aside some earnings in the current period that can be released into income at a later period. The result is to overstate earnings and mislead shareholders and creditors about the success of the company
Premium Balance sheet Generally Accepted Accounting Principles Income statement