use up within one year or its operating cycle, whichever is longer.
A balance sheet account that represents the value of all assets that are reasonably expected to be converted into cash within one year in the normal course of business.
In accounting, a current asset is an asset on the balance sheet which can either be converted to cash or used to pay current liabilities within 12 months. Typical current assets include cash, cash equivalents, short-term investments, accounts receivable, inventory
7. Describe responsibility centers and responsibility accounting
An organizational structure includes lines of responsibility within the organization. Responsibility is assigned to managers who are then held accountable for their actions in planning and utilizing company resources. Four different types of responsibility centers are cost centers, revenue centers, profit centers, and investment centers. Responsibility accounting measures budgeted and actual performance by responsibility center
UNIVERSITI SULTAN ZAINAL ASIDIN
SEMESTER II SESSION 2013/14
FACULTY OF BUSINESS MANAGEMENT AND ACCOUNTANCY
INSTRUCTIONS TO CANDIDATES
1. Answer ALL questions in the answer Booklet provided.
2. Begin each answer on a new page.
This Question Booklet consists of 5 printed pages.
MAS 3023/FPPP/SEMESTER II SESSION 2013/14
In the case of Accounting for Enron, the scandal of Enron was revealed in October 2001 and eventually led to the largest bankruptcy in American History at the time. Enron, an American energy company based in Houston, Texas, and the dissolution of Arthur Anderson, which was one of the five largest audit and accountancy partnerships in the world. Enron collapsed in large part because of unethical practices of its top officials; they abused their power and manipulated information, and
1. Introduction 3
2. Traditional costing system and its limitations 3
3. Activity-Based Costing 4
4. Case Question 4
5. Analysis of the different result between traditional costing system and ABC system
Uploaded By Qasim Mughal http://world-best-free.blogspot.com/
Managerial Accounting and Cost Concepts Solutions to Questions
2-1 Managers carry out three major activities in an organization: planning, directing and motivating, and controlling. Planning involves establishing a basic strategy, selecting a course of action, and specifying how the action will be implemented. Directing and motivating involves mobilizing people to carry out plans and run routine operations. Controlling
ACCOUNTING CHANGES AND ERROR ANALYSIS
Answer No. Description
F 1. Change in accounting estimate.
T 2. Errors in financial statements.
F 3. Adoption of a new principle.
T 4. Retrospective application of accounting principle.
F 5. Reporting cumulative effect of change in principle.
T 6. Disclosure requirements for a change in principle.
T 7. Indirect effect of an accounting change.
T 8. Retrospective application impracticality.
F 9. Reporting
the answers to essay type parts so as to guarantee that your answer is an original. Do not submit as is
14-28 (Controls over cash receipts processing at a church) You have been asked by the board of trustees of a local church to review its accounting procedures. As a part of this review, you have prepared the following comments relating to the collections made at weekly services and recordkeeping for members’ contributions: 1. The church’s board of trustees has delegated responsibility for financial
Running Head: MANAGEMENT ACCOUNTING
The Management Accountant in Business
[Name of the Writer]
[Name of the Institution]
The Management Accountant in Business
Tesco Public Limited Company is a merchandising retailer and a grocery retailer multinational chain which has it’s headquarter in Cheshunt in the United Kingdom. Tesco as compared to its counterparts, Walmart and Carrefour, is the world’s third largest retail store with regard to the revenues that it generates. Tesco stands
Key Figures for the Exercises, Problems and Cases
Creating Value in a Dynamic Business Environment
Ronald W. Hilton
No key figures.
E 2-24 Beginning inventory of finished goods, case I: $84,000
E 2-25 1. Total compensation: $720
E 2-26 2. Total overtime premium: $20
E 2-29 2. Cost of goods sold: $820,000
E 2-30 (f) $77,000
E 2-31 2. Cost per call
parts, the rules of debit and credit, and the meaning of the term normal balance of an account
9. Know about revenue recognition principle, matching principle, and time-period assumption
10. Know the computation net income under accrual accounting (revenues - expenses)
11. Know the meaning and purpose of adjusting entries, and the different types of adjusting entries
12. Know the difference between periodic and perpetual inventory systems
13. Know how to calculate net cost of
XACC/290 Principles of Accounting I
July 20, 2014
As you decide to write and or analyses a company’s finical reports or balance sheets, you must fully understand how they should be listed. Taking a look at the assets of a company you will want to view the current items. Current Assets – which are items that could be converted over into cash, sold and or/ could be consumed within a certain amount of time (typically one year).
The reporting of Cash
The Accounting Cycle
The accounting cycle consists of the following ten steps:
1. Analyze and classify events.
2. Journalizing the event.
3. Posting to the ledger.
4. Taking an unadjusted trial balance.
5. Making adjusting entries.
6. Taking an adjusted trial balance.
7. Prepare financial statements.
8. Complete closing entries and post to the ledger.
9. Take an after closing trial balance.
10. If needed, do reversing entries and post to the ledger.
This paper will discuss
Accounting technician is an occupation that is needed in many aspects of our society. If you like to work with mathematics, computer and money management, a suitable occupation for you is accounting technician. To achieve your goal, you need to be familiar with the job description and duties, working conditions, education and training program, job opportunities and financial aspects.
Job Description and Duties
Accounting technicians keep systematic
______________________________ James Nutter, D.A. Honors Director
OFF-BALANCE SHEET FINANCING Abstract In today’s world, leases appear far and wide; they are commonplace throughout the business and accounting frontiers. Accounting for leases, however, is not so clear cut. Since there are various ways to account for leases, many companies pick and choose which they feel best suits their situation, even when this sweeps dirt under the rug along
the way. The
An Analysis of Accounting Ethics
Ethics refers to the discipline that deals with the bad and the good and also with the moral duties as well as moral obligations (Stolowy and Breton 2004). As Weidmann and Lenzen (2006) points out, ethics entails doing the right thing. Accounting ethics is mainly in the area of applied ethics and at the same time, it is also a part of business ethics as well as human ethics. It is worth pointing out that the
Accounting is an information sciences used to collect, classify, and manipulate financial data for organizations and individuals. Accounting is instrumental within organizations as a means of determining financial stability. Accountants are responsible for determining an organization’s overall wealth, profitability, and liquidity. Without accounting, organizations would have no basis or foundation upon which daily and long-term decisions could be made. The budgets for marketing activities
KIER v CARILLION EXERCISE
BFM234: ACCOUNTING FOR NON-FINANCIAL MANAGERS
Table of Contents
Financial performance and position of Kier Group plc .................................
Financial performance and position of Carillion plc .....................................
Comparison of the financial performance and position between Kier Group plc and Carillion plc .........
analysis indicates that the balance in the Allowance account should be $17,500.
A3: Analysis of the replacement cost for inventory indicates a decline of $17,000 which you consider to be material. The company uses the FIFO method of accounting for inventory.
A4: You analyze the securities held in the Marketable Securities account at year end by looking up the closing price on Yahoo Finance for each security and multiplying by the number of shares held. The result of your
in recognizing transactions?
ACC205: Principles of Accounting I
Cash vs. accrual: Is there a difference in recognizing transactions?
Cash and accrual based accounting are two ways use to record revenue or expense transactions. However, there is a difference in recognizing cash and accrual accounting transactions. Moreover, in cash basis accounting, a transaction is recognized when the money changes hands
* (h) The portion of a change of fair value relating to the entity’s own credit risk for financial liabilities measured at fair value utilising the fair value option is presented in other comprehensive income, except when that would create an accounting mismatch. If such a mismatch would be created or enlarged, the entity is required to present all changes in fair value (including the effects of changes in the credit risk of the liability) in profit or loss.
Fabricators sought bank financing for this purchase the company was offered the funds at 8%, but decided instead to let Jensen hold the note.What amount will Jensen recognize as interest income during 2013? A) $4,356
D) $010.Accounting for long-term credit sales transactions utilizing notes receivable A) ignores interest unless an interest rate is specified in the note.
B) makes it difficult to assess the degree to which a company's overall earnings are due to profitable credit
(MIA) as one of the requirements for MIA membership as a Chartered Accountant in Malaysia. A Chartered Accountant (with practicing certificates) can set up his or her own Public Practice and provide services such as accounting, audit, liquidation, tax and other related services. Many accounting graduates from overseas (e.g. UK, Australia, US, etc) take up ACCA studies after they return to Malaysia so that they can meet the requirements of MIA membership to be Chartered Accountants in Malaysia. (Visit MIA
ISSUES IN ACCOUNTING EDUCATION
Vol. 26, No. 4
American Accounting Association
Home Heaters: A Holistic View of the
M. Cathy Claiborne and Kirkland A. Wilcox
ABSTRACT: In this case, two start-up companies in the same industry have identical
economic transactions. Although both companies follow generally accepted accounting
principles (GAAP), each manager makes different choices and estimates when applying
GAAP. By preparing
ISSUES IN ACCOUNTING EDUCATION
Vol. 23, No. 2 May 2008 pp. 299–307
Assessing Audit and Business Risks at Toy Central Corporation
Christine E. Earley and Fred Phillips
[pic]s a senior in a professional services firm, you have been assigned to plan the financial statement audit of a private company named Toy Central Corporation (TCC). In addition, the partner on the engagement has asked you to identify business risks that could adversely affect TCC’s sustained profitability
11. In accounting for compensated absences, a company following the guidance in FASB Statement No. 43 would account for the liability using the:
Cash Basis Accrual Basis
a. Yes Yes
b. Yes No
c. No Yes
d. No No
12. In accounting for compensated absences, the differences between vested rights and accumulated rights is:
of time. It provides an idea of the company’s cash position, which includes the net increase and decrease, inflows and outflows of cash through three major components: operating activities, investing activities, and financing activities over an accounting period. The operating activities include the cash effects of transactions that create revenues and expenses. It helps determine net income for that year. The investing activities include the sales and purchases of the company. It also includes the
Week One Exercise Assignment
Basic Accounting Equations
1. Recognition of normal balances
The following items appeared in the accounting records of Triguero's, a retail music store that also sponsors concerts. Classify each of the items as an asset, liability; revenue; or expense from the company's viewpoint. Also indicate the normal account balance of each item.
a. Amounts paid to a mall for rent.
b. Amounts to be paid in 10 days to suppliers.
c. A new fax machine purchased for office
the characteristics of the corporate form of organization. Identify the key components of equity. Explain the accounting procedures for issuing shares. Describe the accounting for treasury shares. Explain the accounting for and reporting of preference shares. Describe the policies used in distributing dividends. Identify the various forms of dividend distributions. Explain the accounting for small and large share dividends, and for share splits. Indicate how to present and analyze equity. Explain
information is vital to accountants. This is where AIS or Accounting Information Systems come in, this practice was originally handled “in house” by most businesses, but as technology changed and businesses became more web based, software packages from developers such as Microsoft and Oracle are sold to assist businesses with their accounting needs. AIS was developed for the collection, storage, and processing of financial and accounting data. In most organizations A.I.S. are made up of interrelated
Sarbanes Oxley Companies
Sarbanes oxley act 2002 was passed on July 30, 2002 and only the public companies are now feeling its impact. This act frequently called the “most significant accounting or auditing legislation since the securities exchange Act of 1934”. After the implementation it has established its demands to the companies for proper management and disclosure of risk. Nortel networks is a giant corporate in telecom industry and as it is expected they also have faced the challenges
Accounting is a common thread which unites even the smallest neighborhood business with an organization identified as a Fortune 500 company. Every company, regardless of size or mode of operation, needs to support this function. If accounting is so universal, then, how do companies involved in diverse industries with unique processes prepare their books in the same manner? Well, there exist a common set of standards for entities to follow, but there are also standards specific to organizations
The Systems Development Life Cycle
By: LeDarius Norwood
October 20, 2013
Accounting Information Systems
A structure that a business uses to collect, manage, store, process, retrieve, and report financial data to accountants, consultants, high ranking corporate officers, or tax agencies is the prime definition of an accounting information system. Accounting information systems are responsible for every facet of numerical data in a company and a malfunction could potentially cause a disaster
rate of return (company stipulated) |12% |
|Corporate tax rate |30% |
The company uses a straight-line depreciation method for accounting and tax purposes.
a. Will Wendy accept the project? Make a recommendation after calculating her ROI with and without the investment. Assume that investment occurs at the start of the year.
Comparing it in
the status of such effects on the business.
- Financial interpretation is supported by various methods such as comparative breakeven, graphic calculators which significant purpose or financial reasons, which are ultimately the rationale for any accounting information arising
The financial analysis has two tools to interpret and analyze financial statements referred to horizontal and vertical analysis, which is to determine the proportional weight (in percent) that each account used within the
Through history and the many years of accounting practice, a lot of accounting theories have been developed. Interestingly, many of those theories are grounded on the basis of prescribing and proposing how accounting processes should be performed. These are known as normative theories of accounting as they are not built on observation, but rather upon the theoristâ€™s deductive judgement, and subjective opinion (Goble 2009).
Accounting conceptual frameworks are good examples of normative
The fourth market involves direct transactions among large institutions, bypassing intermediaries such as brokers and dealers.
Level of Difficulty: Medium Topic: The Third and Fourth Markets
4-2. The primary factors accounting for the rapid changes in securities markets are:
• Pressure by institutional investors who have emerged as the dominant force in the market
• Computerized trading of securities
Level of Difficulty: Medium
and discuss the support in that literature for your conclusions. Be sure to cite the relevant components of the Codification (available at: http://asc.fasb.org) in your discussion. Citations are not required for journal entries.
1. What are the accounting issue(s) and the relevant components of the authoritative literature?
2. How does the fact that ChemInc has not shipped the MCA to Bond by the end of the year affect the recognition of revenue by ChemInc in 20X9? What other issues must be considered
Edward An-dersen was born. From an early age, the Andersens' son had a fascination with numbers. Little did his parents realize that Arthur's interest in numbers would become the driving force in his life. Less than one century after he was born, an accounting firm bearing Arthur Andersen's name would become the world's largest professional services organization with more than 1,000 partners and op-erations in dozens of countries scattered across the globe.
think straight, talk straight
* Create a corresponding APA reference list at the end of your memo
* Submit your memo as a Word file to the appropriate ASP Cost Accounting Blackboard assignment page.
Grading: Review the rubric provided on Blackboard, it is used for grading. The assignment will be graded based on, but not limited to, your knowledge of the subject matter, organization statement, organization of
Chapter 10 Accounting for Derivatives and Hedge Accounting IFRS 9 defines a derivative as a financial instrument or other contract within the scope of IFRS 9 that meets three criteria: 1. Its value changes in response to a change in an "underlying". The underlying can be the price of a commodity, such as soybeans, or a financial instrument, such as a fixed rate bond. It can also be a rate such as a foreign exchange rate or a specified interest rate, for example, the London Interbank Offer Rate; It
C) Discuss the extent to which IAS 21 is likely to enhance the comparability of financial statements of listed companies in Europe and Australia.
Accounting standards around the world were immensely diverse. Each country had different accounting standards and methods of calculation within their country. Over time many listed companies and corporations have become international and have spread globally. Individual standards caused a large number of rework and comparison issues in order to prepare
Accounting information – Coursework
Some academics believe that there is a direct relationship between accounting information systems and organisations. It is thought there is a two-way system whereby organisations shape their accounting information systems but are also shaped by them. This report will look at the highlighted relationship and in the context of the information literacy and management skills that are needed by an accountancy graduate in the 21st Century. The report will also cover
453 was started and completed during the year. What price would have been charged to the customer if the job required $3,300 in materials and $4,900 in direct labor cost, and the company priced its jobs at 40% above the job’s cost according to the accounting system?
5. Direct labor made up $8,700 of the $36,000 ending Work in Process inventory balance. Supply the information missing below:
Work in process inventory
The primary difference between accounting and finance is that accounting emphasizes _____ whereas finance emphasizes ___.
Student Response Value Correct Answer Feedback
1. cash flows; profits
2. profits; cash flows 100%
3. profits; book value
4. book value; profits
5. book value; cash flows
2. Corporation 2
The main advantage to a corporation is_______.
Student Response Value Correct Answer Feedback
1. double taxation
Adding value means it is expected that the IT of the WestJet and consisting to the business in areas like ease of use, the satisfaction of customer, profitability and productivity. Furthermore, Smith could use accounting-based metrics to measure in adding value area. For example, save for cost, investment returning, or even qualitative checking. So it is a positive area to calculating.
It is very important and emergency for WestJet that Smith has