automobile and for the user of financial statements are essentially the same. They are both concerned with the problem of unreliable information being provided. In the case of the auditor‚ the user is concerned about unreliable information being provided in the financial statements. The buyer of an automobile is likely to be concerned about the manufacturer or dealer providing unreliable information. c.) Compare the four causes of information risk faced by users of financial statements as discussed in
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Chapter 4 : Account Titles and Preparation of Financial Statements | Article 14 : The balance sheet items shallbe categorized as follows: 1. Assets. (1) Current assets. (2) Funds and long-term investments. (3) Property‚ plant and equipment. (4) Depletable assets. (5) Intangible assets.
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*Since outcome of litigation is only 20% (remote)‚ it is not appropriate to provide for damages. The unrecoverable legal costs are a liability as the start of legal action is past event and should be provided in full. KASTURI Bhd Statement of Financial Position as at 31 March 2011 | Notes | RM | RM | Non-current Assets | | | | Property‚ Plant and
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standards are set for a various operating activities. The actual results are compared to these standards (comparing what happened with what should have happened). The differences are called exceptions and are brought up to the management. Variance Analysis Cycle: preparation of standard cost performance reports in the accounting department – highlight variances‚ variances raise questions‚ significant variances are investigated to discover their root causes‚ and finally corrective actions are taken
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organisational plan and all the related measures that an entity adopts to: * safeguard assets * encourage adherence to company policies * promote operational efficiency * ensure accurate and reliable accounting records. It is either an administrative control or an accounting control Characteristics of an effective internal control system include: * Competent‚ reliable‚ and ethical personnel * Assignment of responsibilities * Proper authorisation * Separation of duties
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Subject : Financial Accounting Ⅱ Lease agreement between NeedsLease and HasSpace NeedsLease is renting a space for its corporate office from HasSpace by entering into a lease agreement. The agreed lease term is for 10 years and there is no option to renew nor is the ability to negotiate renewal of the term. According to ASC 840 (5F of statement 13)‚ the lease is classified as operating lease. The agreement includes two provisions that may require NeedsLease to perform certain activities at its
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Accounting and Finance Management Assignment 2 Semester: 3 Prepared by: Osoba Seun Student Number: Sc-Kl-00021763 Email Address: josher4real@yahoo.com Date submitted: 17/01/2014 Question 1 Sales Budget September ($) October ($) Budgeted sales (units) 9‚500 Selling price per unit $12 Total sales 90‚000 114‚000 Schedule of expected cash collections: October ($) Account
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The formation of the debit and credit concept In this simplified form we can begin to see what the mathematician and Father of Accounting (Luca Pacioli) saw in 1494 when he codified the double-entry bookkeeping system. It is his codified system that outlined the rules for applying debits and credits when recording the financial transactions of a business in the double-entry bookkeeping system. Now remember that Luca’s book in 1494 was written and published in Latin and at a time when the concept
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0-20% a)HELD TO MATURITY: only used for debt securities LOCOM (if impaired‚ write down) Financial Investment (A+) 22 Cash (A-) 22 b)TRADING: gains & losses are recognized in I/S; intention of investor is to profit from ST price fluctuations FAIR VALUE Financial Investment (A+) 22 Cash (A-) 22 Financial Investment (A+) 4 Gain on investment on securities (OE+) 4 c)AVAIL FOR SALE: recorded on B/S at FAIR VALUE; gains
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time are avail-able annually on the machine. Since each drum requires 0.8 hours of welding time‚ annual production is limited to 2‚500 drums. At present‚ the welding machine is used exclusively to make the XSX drums. The accounting department has provided the following financial data concerning the XSX drums: Management believes 3‚000 XSX drums could be sold each year if the company had sufficient manufacturing capacity. As an alternative to adding another welding machine‚ management has looked
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