...acc Accrual V.S. Cash Accounting Miguel Gonzalez ACC/290 August 3, 2012 Dr. Dorothy Welch In this assignment, I will describe the cash basis of accounting and the accrual basis of accounting and will explain the difference. Cash Basis accounting is the easy and less expensive method of accounting. In this method of accounting, cash is recognized when the physical cash transaction occurs. Thus, this method does not recognize payables, receivables, and prepaid expenses. Additionally, cash basis accounting does not comply with the revenue recognition principle and the matching principle. In accrual basis of accounting, revenue is recognized when it is earned and expenses are recognized when they are incurred. Susan Ward states, “Accrual basis accounting gives the most accurate picture of the financial state of your business.” We are essentially keeping track of the most current business practices, such as to who owes who money, and service. When the customer owes us money, we create an accounts receivable. When we owe money we create an accounts payable. When we pay cash before an expense we create a deferred expense account. There are key differences between the methods of accounting. In cash basis, taxable income may be deferred to the next year due to delays in billing. However, in accrual basis, the company might have to pay taxes on income before payment is received. Under the cash basis method, there is no company...
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...Running head: Learning Team Reflection University of Phoenix ACC/290 Principles of Accounting I 04 November 2012 Learning Team Reflection – Week 3 This week, we have learned that accounting involves more than recording transactions and balancing accounts. Along with journalizing transactions and adjusting entries, the accounting cycle also involves closing entries and preparing a post-closing trial balance. We believe that the most important of the skills learned when we are in an accounting position is to understand the basic accounting equation, assets + liabilities + stockholder’s equity. Most accounting concepts all go back to this equation as the basis for balancing accounts when transactions are journalized in them. There are two types of accounting methods used to maintain financial records and prepare reports: accrual and cash basis accounting. Accrual basis accounting is the method that is accepted under the Generally Accepted Accounting Principles (GAAP). This principle holds that accounting transactions are recognized and recorded when the expense or revenue actually occurred, not when cash changes hands (James, 2012). The benefit of accrual basis accounting is that expenses and revenues can be matched as they happen, which is much more effective for monitoring cash flow (Epstein, n.d.). Accrual accounting has a more complex recording process than cash basis accounting and...
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...Comparison between IFRS and GAAP Agustin Blanco ACC 290 06/06/2016 Dan Jensen Comparison between IFRS and GAAP This paper provides a comparison between the International Financial Reporting Standards (IFRS) and the United States Generally Accepted Accounting Principles (GAAP) and how they are differentiate from each other in the format of financial statement, conceptual framework, and IFRS terms. There is also a description of some issues the SEC must consider in order to adopt IFRS in the United States as well as a comparison of the rules regarding revenue recognition under IFRS versus GAAP. There is an explanation of the definitions Under IFRS for revenues and expenses, as well as an explanation of the competitive implications (both pros and cons) of Sarbanes-Oxley Act (SOX). Questions IFRS 2-1: In what ways does the format of a statement of financial position under IFRS often differ from a balance sheet presented under GAAP? The main difference between the formatting of IFRS and GAAP statement of financial of position and a GAAP balance sheet is the ordering of liquidity. IFRS does not require a particular order or any classification of accounts. It is common for companies to report assets in reverse liquidity under IFRS. Instead, GAAP specifies and requires all a company’s account be classified and ordered based on liquidity. IFRS 2-2: Do the IFRS and GAAP conceptual frameworks differ in terms of the objective of financial reporting...
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...Financial Reporting, Part 1 XACC/290 12 May 2013 Financial Reporting, Part 1 After browsing for a publicly traded company on the Internet I decided to choose a Comcast Corporation. The reason I chose Comcast Corporation is because it is a company that has made huge stride over the last several years. I also chose a telecommunications company because my husband has worked in this industry for over 15 years. Telecommunication makes up a decent piece of the gross world product by providing business, money, and market stability for the world. Comcast Corporation provides their information on the 2012 annual report in millions, except per share data according to the report. Comcast Corporation’s total assets at the end of the most recent annual reporting period, which was 2012, is $164,971M. This number is important because assets add value to Comcast Corporation and support the continued growth of the company. On the top portion of the balance sheet, Comcast Corporation’s assets are in order of liquidity, from most liquid to least liquid. The total assets at the end for 2011 annual report was $157,818M. At the end of 2012 annual reporting period, Comcast Corporation had $10,951M in cash and cash equivalents. At the end of Comcast Corporation’s 2012 annual reporting period, Comcast Corporation had $6,206M in accounts payable verse 2011 annual report which stated a total of $5,705M. This is showing continued growth of the company. Comcast Corporation’s...
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...Business environment Name: Course: Tutor: Date: Business environment A business environment can be identified as the combination of both external and internal factors that have an effect on the company’s operations. Factors found in the business environment will include the suppliers, clients, owner, and its competition. The company’s operation will also be affected by the government’s policies and the laws that affect any business operation. The internal environment can be defined as the conditions and factors found within the organization that have an effect on the behavior of the employees. This factors that can be identified with the internal environment will include the leadership styles, the organization culture and the organization mission statement. The external environment can be defied as the conditions and factors that surround the organization affecting the organizations activities and choices. Dell It’s a multinational computer company that is based in America, it develops, sells and supports computers and computer related services and products. It’s one of the largest technological companies that enjoy a large share in the world. Internal environment The internal business environment is identified to be multidimensional; hence it will be affected by political, economic, social and technological factors. Each factor will be affected by the base in which the company is set up. This base will determine...
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...University of Phoenix Material QuickBooks® Online Assignment Supplementary Material Use the following information to complete your QuickBooks® Online assignments in Week’s 2–4. Week 2 Creating Deposits • Select the large + sign in the upper-middle part of the screen. • On the right-hand side under the Other menu, select Bank Deposit. • At the top left of the deposit screen, make sure account 100 Cash-Checking Acct is selected. • Enter the appropriate date to match data for Sierra Corporation data. Inputting the incorrect date will cause problems when reports are run later. • In the Received From field, select the proper name from the list that appears in right-hand side of the box. • In the Account field, select the appropriate account name from the list that appears in the right-hand side of the box. • Input the correct amount in the Amount field. • Select Save and New to complete the transaction. • When done with deposits, click on the large X near the top right of the screen to return to the main menu. Do not click on the X for the browser or QuickBooks tab. Writing Checks • Select the large + sign in the upper-middle part of the screen. • On the left middle side under the Vendor menu, select Check. • At the top left of the check screen, select the proper vendor for payment. • Next, make sure account 100 Cash-Checking Acct is selected. • Enter the appropriate date to match data for Sierra Corporation data. Inputting the...
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...IFRS verses GAAP Gabriel Whatley ACC/290 March 28, 2016 Steven McAlister IFRS verses GAAP International Financial Reporting Standards (IFRS) is a set of accounting standards developed by an independent, not-for-profit organization called the International Accounting Standards Board (IASB), (Rouse, 2011). While, GAAP (generally accepted accounting principles) is a collection of commonly-followed accounting rules and standards for financial reporting. Even though IFRS is a set of accounting standards and GAAP are sets of accounting rules and standards they do differ from each other. Level One Heading Replace the level one heading with the words for your heading. The heading must be in bold font. Headings help your audience track the sub-topics discussed in the body of the essay or report. Begin a new heading for each sub-topic. Be sure to indent the first line of each paragraph between five and seven spaces by pressing the Tab key one time on the keyboard. In addition, remember to double space the entire paper using the double space functionality in Word. This template is already formatted for double spacing. Read more: Center for Writing Excellence>Tutorials and Guides>Software Tutorials and Guides>Formatting Tutorial for APA. In addition, keep in mind an academic essay should contain at least five paragraphs, which includes the introduction (introductory paragraph), the body (which is generally at least 3 paragraphs)...
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...PRODUCT DESCRIPTION ACC 290 Week 5, 1- The control environment is the basis of the entire control system that the organization is establishing. The control environment is the value that is placed on integrity and the knowledge that unethical activity will not be tolerated. It is management’s responsibility to express behavior and attitude that enforces this ethical behavior. The control environment affects the internal control by setting a basis of control activities that safeguard assets, enhance accounting reliability, increase 2- The controls that should be in place to protect a merchandiser in a cash rich environment are – Establishment of responsibility Segregation of duties Documentation procedures Physical controls Independent internal verification 3- The Sarbanes-Oxley Act (SOX) requires that all publicly traded U.S. corporations are required to sustain a satisfactory structure of internal controls. In addition to internal controls each organization must be able to confirm their compliance by an independent outside audit. SOX came about because of public outrage to lack of corporate integrity and accounting dishonesty. Major corporations such as Enron and WorldCom were dishonestly reporting accounting figures to investors and such dishonesty led to the major losses in investor’s money. SOX requirements have improved Assignment BE5-1 Sales: $181,500 Cost of goods sold: $41,200 Gross profit: $38,000 Operating expenses: $17...
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...ACC 290 WEEK 3 A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=week-3 Visit Our website: http://hwsoloutions.com/ Product Description PRODUCT DESCRIPTION ACC 290 Week 3, ACC 290 Week 3 Complete, 1- The process for completing accounting circuit includes … Analyzing business transactions (to judge what was purchased and what accounts it affects) Journalizing the transactions (place the entries in the correct accounts dr. & cr.) Post to ledger accounts (post to the correct ledger account dr. & cr.) 2- In order for me to remember which is a permanent account and which is a temporary account – temporary – revenues, expenses, and dividends permanent – all balance sheet accounts because they are carried forward to the next accounting period – assets, liabilities, and stockholder’s equity. The four closing journal entries are a- Revenue accounts are closed to income summary 3- A worksheet is a beneficial extra that sometimes makes it easier to prepare adjusting entries and financial statements. In larger corporations worksheets are helpful when making many adjustments and when using a computer, spreadsheet columns can be set up for trail balance, adjustments, and adjusted balances – there are also useful for the computation of net income/loss on the worksheet. Worksheets can be prepared manually, in an excel spreadsheet, or purchased with programmable Assignment BE4-1 cash net income A. B. C. D. E. F. -100 0 0 +800 -2,500 ...
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...ACC 290 WEEK 5 A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=week-5 Visit Our website: http://hwsoloutions.com/ Product Description PRODUCT DESCRIPTION ACC 290 Week 5, 1- The control environment is the basis of the entire control system that the organization is establishing. The control environment is the value that is placed on integrity and the knowledge that unethical activity will not be tolerated. It is management’s responsibility to express behavior and attitude that enforces this ethical behavior. The control environment affects the internal control by setting a basis of control activities that safeguard assets, enhance accounting reliability, increase 2- The controls that should be in place to protect a merchandiser in a cash rich environment are – Establishment of responsibility Segregation of duties Documentation procedures Physical controls Independent internal verification 3- The Sarbanes-Oxley Act (SOX) requires that all publicly traded U.S. corporations are required to sustain a satisfactory structure of internal controls. In addition to internal controls each organization must be able to confirm their compliance by an independent outside audit. SOX came about because of public outrage to lack of corporate integrity and accounting dishonesty. Major corporations such as Enron and WorldCom were dishonestly reporting accounting figures to investors and such dishonesty led to the major losses in investor’s money. SOX requirements...
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...Acc 290 Week 4, 1-One can determine the cost of goods sold when using a periodic inventory system does not calculate the cost of goods sold until the end of the period. At the end of the period a count is done to determine the ending balance of the inventory. After this is completed the cost of goods sold 2- The perpetual system of inventory keeps a running tally of inventory that is live and this is done by automatically making changes to the inventory as each item is sold, freight cost, returned, or 3- The reason behind understanding value of inventory at a point in time is to accurately report what the value of the inventory (asset) is for a company. If the asset of a company is worth less than what the market is willing to pay for it than the company will not make money on selling those goods. Also, knowing the price the inventory was purchased at compared to what the market price – Week 4 Problems Date Accounts Debit Credit July 1 Cash 12,000 12,000 1 Equipment 8,000 6,000 2,000 3 Supplies 900 900 5 Prepaid Insur. 1,800 1,800 12 Accounts Rec. 3,700 3,700 18 Accounts Pay. 1,500 1,500 20 Salary Exp. 2,000 2,000 21 Cash 1,600 1,600 25 Accounts Rec. 2,500 2,500 Financial Reporting Problem, Part I The company’s annual report is important because it gives the shareholders a clear picture and understanding about how the company is doing financially. The annual reports provide thorough information on very significant section of the accounts...
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...ACC 290 Week 1, DQ1- The four basic financial statements are income, retained earnings, balance, and statement of cash flows. Financial statements provide a means for the business to judge the results of their operational or financial performance over a period of time. Income statements provide investors and the business a description of how profitable the business is performing within a specific period in time. Retained earnings are income that is left in the company (reinvested) that was not distributed to the stockholders. This statement explains why the DQ2- Financial statements alert investors of the risk that is involved in investing in the company. The information from these reports also allow investors to judge what type of return they will receive on their investment and it also helps them to determine whether to hold, buy, or sell. Creditors are concerned with any statistical financial information that helps them to determine the financial stability of the organization and whether the business will repay the loan….. DQ-3 A debit is an asset or increase in cash (left column). Debits normally increase assets and decrease liabilities and credits normally decrease assets and increase liabilities. A credit is a decrease in cash (right column). Debits and credits are used to record business transactions by the type of account that is used. Expense and assets are increased on the debit or left side and liability equity and revenue accounts are increased on...
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...Financial Statements Amber Khan University of Phoenix Principles of Accounting 1 ACC-290 Jean Balla May 9, 2012 Financial Statements Identify the four basic financial statements The four basic types of financial statements are balance sheet, income statement, statement of owner’s equity, and lastly statement of cash flow ("The Four Financial Statements", 1999-2010). Describe the purpose of each of the four financial statements. A balance sheet is used to summarize the finances of a company during a specific period of time. The sum of company’s liabilities and the owner’s equity should be equal the assets and finding the balance between the two is why this report is called a balance sheet. An explanation of the components of a balance sheet could be: Assets = Liabilities + Equity ("The Four Financial Statements", 1999-2010). An income statement is a representation of company’s profit or loss. The statement includes figures from sales and expenses. The difference between revenue and expenses is the company’s net income. An income statement is usually compiled monthly to keep track of the company’s progress. The purpose of owner’s equity statement is to compare owner’s equity from the start of the period to the end of that period. Owner’s equity combines information from both the income statement and balance sheet as an owner’s equity is determined by adding the investments and income and subtracting this figure from withdrawals...
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...Financial Reporting – Apple, Inc. ACC/290 Apple Inc. is a manufacturer and developer of consumer electronics, computers, and software. The company is headquartered in Cupertino, California and was, until recent, headed by founder and CEO, Steve Jobs. Apple is a well-recognized company that provides an alternative to the traditional personal computer, and personal devices. Assets and Liabilities of Apple The four different types of assets are Current Assets, Long-Term Assets, PPE (Property, Plant & Equipment), and Intangible Assets. Team B’s task was to define current assets. A current asset is an asset which can either be converted to cash or used to pay current liabilities within one year. Typical current assets include cash, cash equivalents, short-term investments, accounts receivable, stock inventory and the portion of prepaid liabilities which will be paid within the year. Current assets are presented in the order of liquidity, example; cash, temporary investments, accounts receivable, inventory, supplies, prepaid insurance (Accountingbase.com, 2009). Team B was also asked to determine if Apple’s current assets are listed in the proper order. Apple lists its current assets in this order: cash and cash equivalents, short term marketable securities, accounts receivable, inventories, deferred tax assets, vendor receivables, other miscellaneous assets. Generally Accepted Accounting Principles (GAAP) require that assets are listed in order of liquidity. The order...
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...GUIDELINES...............................................................................7 REAR YARD FENCE GUIDELINES ......................................................................................9 PLAY EQUIPMENT GUIDELINES ......................................................................................11 SATELLITE RECEIVER (DISH) GUIDELINES ..................................................................13 GENERAL IMPROVEMENTS, LANDSCAPE & MAINTENANCE GUIDELINES..........14 LIST OF RECOMMENDED PLANT SPECIES ....................................................................19 EXHIBIT A REQUEST FORM 2 CHRISTENBURY MASTER ASSOCIATION, INC. ARCHITECTURAL CONTROL COMMITTEE INTRODUCTION The Architectural Control Committee (ACC) is providing the attached Architectural Design Guidelines (“Guidelines”) in accordance with that Declaration of Covenants, Easements, Conditions and Restrictions (“Declaration”), for purposes of establishing and maintaining exterior design elements throughout Christenbury. This document should be filed with the homeowners’ copy of the Declaration received at closing. It is the responsibility of each homeowner to pass along the Declaration and Guidelines to any future buyer of their home at Christenbury. It is important to note that the Guidelines are applicable to most all future building exterior and property...
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