Cash vs. Accrual Accounting It’s important for you to understand the basics of the two principal methods of keeping track of a business’s income and expenses: cash method and accrual method (sometimes called cash basis and accrual basis). In a nutshell‚ these methods differ only in the timing of when sales and purchases are credited or debited to your accounts. If you use the cash method‚ income is counted when cash (or a check) is actually received‚ and expenses are counted when actually paid
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| ACCOUNTING PRINCIPLES | | | Meaning of Accounting Principle | | Principle means a general law or rule adopted or professed as a guide to action ‘a settled ground or a basis of conduct or practice’. The word ‘Principle’ when applied in accounting may have different meanings in different contexts. It is not used in the sense of a fundamental accounting truth – it connotes a guiding influence or an accepted rule of action or conduct. Accounting principles have been defined as the body
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for costs and revenues. only for costs. 4. Properly designed management control systems have both fixed compensation and contingent compensation. True False 5. Controllable revenue is included in a performance report of a: Option b Option d Option c Option a 6. Internal controls include all of the following except: requiring management authorization for the use of a company’s assets. reconciling various sets
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Please forward the following two questions to the entire batch as directed by Sengupta sir. AS 2 Determine the cost of inventory of M/s XYZ International Limited involved in the import and trading of mobile phones as at March 31‚ 2011 in accordance with Accounting Standard – 2‚ Valuation of Inventories‚ from the following data (5000 phones) :- Purchase cost of phones – Rs 50‚000 Custom duty on Import – Rs 30‚000 Port clearing charges – Rs 10‚000 Carriage inwards – Rs 15‚000 Salary to
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Puyricard Fine Chocolate. Puyricard is a premium chocolate-maker. It produces and sells fine handmade chocolates‚ calissons and confectionary through its own retail network (14 stores in France: 12 in Provence‚ 2 in Paris)‚ wholesales and website. It is the French leader for craft chocolate‚ with an annual production of 120 tons of chocolate and a turnover of 6‚9 million euros. The company is family-owned and run by the sons of the founders. It was created 40 years ago and the CEO‚ Tanguy Roelandts
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Chapter 9—Break-Even Point and Cost-Volume-Profit Analysis MULTIPLE CHOICE 1. CVP analysis requires costs to be categorized as a. | either fixed or variable. | b. | direct or indirect. | c. | product or period. | d. | standard or actual. | ANS: A PTS: 1 DIF: Easy OBJ: 9-1 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Decision Modeling 2. With respect to fixed costs‚ CVP analysis assumes total fixed costs a. | per unit remain constant
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In psychology‚ the experimental method involves the manipulation of some aspect of a situation‚ and observing the effects this has on a particular behavior. In technical terms‚ the former is the independent variable (IV)‚ and the latter the dependant variable (DV). Only the investigations which involve the manipulation of the independent variables is part of the experimental method. Basically‚ in other words‚ we can say that experimental method is the type of research which involves the investigation
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Unit 6 Statement of Cash Flows and Financial Statement Analysis & The Metrics of a Company Unit Assignment Kaplan University January 18‚ 2013 AC505: Advanced Managerial/Cost Accounting |Transaction |Operating |Investing |Financing | |A. Paid bills to insurers and utility providers
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5. Accounting and Business techniques used. 2.5.1 Financial Ratios • Liquidity Ratios It is very crucial that an organisation meets its day to day obligations as they fall due. It is possible that an organisation that has very good and positive looking financial statement may experience liquidity problems. Hence measuring liquidity allows the organisation to better monitor its cash flows. Two commonly used ratios to measure liquidity are shown below
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Framework Zhang Yi Fei and Che Ruhana Isa becoming more and more popular [3-7] ABC aims to provide accurate costing information to managers to allocate activity costs to products and services by applying cost drivers [8]. Academics who advocate ABC‚ such as‚ Cooper and Kaplan [9]‚ and Swenson [10] argue that it provides more accurate cost data needed to make appropriate strategic decisions about product mix‚ sourcing‚ pricing‚ process improvement‚ and evaluation of business process performance. These
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