"Why is cash basis accounting prohibited under generally accepted accounting principles" Essays and Research Papers

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    Generally Accepted Accounting Principles (GAAP) is a standard guidelines and accounting rules that companies used to prepare‚ present‚ and report financial information. By following this framework‚ companies can ensure that any financial information presented is uniformly consistent‚ relevant‚ feasible and objective. Through this standardization‚ corporate financial information can more readily be reviewed and interpreted by investors‚ stockholders‚ banks and other potential creditors and also promotes

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    Matric no: ______________ Group: _________ Attendance list no: _____________ Tutorial 1: Chapter 1‚ 2‚ 3 DUE DATE: 3 OCTOBER 2013 1. Accounting is a process involving the following activities‚ EXCEPT: A. recording of economic activities B. communicating to stakeholders C. identifying relevant economic activities D. guaranteeing profitability of business operation 2. A senior accountant working at the Account Department of Universiti Utara Malaysia is also known as: A. a public

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    2. Accounting functions This chapter will discuss the organization of Dell in general and provide insights about the Dell business. Will discuss the different stakeholders who are interested in Dell Company and what the key resources of Dell are. Will see the role of accounting within the organization and the accounting software‚ if any‚ they use. 2.1. About Dell Michael dell is the founder for Dell Company. Michael‚ with twenty seven years old‚ was the youngest CEO of a fortune 500company in

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    cash basis accounting

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    Current status of public sector accounting in Malaysia- Cash Basis Accounting Revenue is only recorded when the cash is actually exchanged for example‚ when revenue is received as cash and when expenses are actually paid. http://www.quora.com/What-are-the-differences-between-cash-basis-and-accrual-basis-accounting Why government used the cash basis of accounting? Easy to learn and carry out and requires care but no special accounting skills. Well-adapted to needs of budgetary control and payment

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    the research and development activities? Pharmco 2. Justify your response. Disco is obligated‚ via a “Development Agreement‚” to engage Pharmco to perform all of Disco’s research‚ development‚ & clinical testing activities related to products under development. 2. Using the financial statements provided in Teaching Notes Exhibit 1‚ calculate the following ratios for Pharmco without consolidation of Disco and for the consolidated results. Exclude amounts allocated to the non-controlling interest

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    If a company earns net income of $25 million in Year 8‚ has 10 million shares of stock‚ pays a dividend of $1.00 per share‚ and has annual interest costs of $10 million‚ then | | |[pic]|[pic]|the company would have Year 8 earnings per share of $1.50. | | |[pic]| | |[pic]|[pic]|the company’s retained earnings for

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    P80‚000 Feb. 28 Cash dividend 2‚000 Mar. 31 Bought shares 9‚000 Apr. 1 Sale of rights 6‚000 June 30 Sale of shares 10‚000 1. A cash dividend of P0.50 per share were received on Feb. 28. The adjusting entry (assuming the use of the cost method) is: a. Stock Investment 2‚000 Dividend income 2‚000 b. Retained earnings 2‚000 Dividend income 2‚000 c. Dividend Income 2‚000 Stock investment 2‚000 d. Cash 2‚000 Dividend

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    the prior year‚ driven by an increase in comparable sales of 10% and the opening of twenty new warehouses; net income increased for fiscal 2004 by 22.4%‚ or $1.85 per diluted share; and for the first time‚ the Board of Directors declared a quarterly cash dividend‚ with the company issuing quarterly dividends in the third and fourth quarters of $0.10 per share. Costco ’s ROE remained stable year-over-year from .11 in 2003 to .12 in 2004. The company has maintained a steady profit margin‚ shown solid

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    and mature January 1‚ 2015. Interest is payable annually on January 1. Instructions: Set up a schedule of interest expense and discount amortization under the straight-line method. E14-7 (Amortization Schedule—Effective-Interest) Assume the same information as E14-6. Instructions: Set up a schedule of interest expense and discount amortization under the effective-interest method. (Hint: The effective interest rate must be computed.) E14-9 (Entries and Questions for Bond Transactions) On June 30

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    fall-out of Accounting Period concept. This concept requires that expenses incurred for a particular accounting period should be reckoned in the same period‚ irrespective of the fact whether these expenses have been paid in cash or not in that year. The same holds true for revenues‚ i.e.‚ revenues earned in a specific accounting period are construed as incomes of the same period‚ irrespective of their receipts. This concept is also known as the accrual theory of accounting or accrual accounting. This

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