...Week Four Individual Paper XXX ACC/290 September XX, 2012 XXX Week Four Individual Paper The current reading supports that commercial accounting and generally accepted accounting principles, strongly advise the accrual basis of accounting versus the cash basis of accounting. The accrual basis of accounting confirms that when transactions alter a business’s financial statements they are recorded during the period that the events happened, regardless if there was an exchange of cash or not. An example of the accrual basis would be businesses who recognize revenues earned, regardless if cash was received or not. The accrual basis also recognize when expenses are incurred, even if cash was not paid. The other potential option to the accrual basis is the cash basis. The major difference between the two accounting basis’, is that under the cash basis a business will record their revenue only at the time that cash is received. Additionally, they record expenses only when cash is received. For these reasons, the cash basis of accounting is not allowed under generally accepted accounting principles. This is due to the fact that the cash basis does not record revenue when it is earned, and therefore violates the principle of revenue recognition. At the same time, the cash basis does not allow for recording the expenses as they occur, which is a violation of the matching principle. The cash basis measures can mislead or misrepresent the true financial picture of a...
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...problem-solving and decision-making skills developed throughout the course. The “Qualify or Not” Ethics Case on pp. 288-290 (Ch. 4) introduces an accounting professional who faces an ethical dilemma. Your task is to apply your understanding of philosophical approaches to ethical decision making and stakeholder impact analysis to resolve the ethical dilemma detailed in the Ethics Case. Decide upon an ethical course of action the accountant could take and support that action with critical thinking and argumentation. Analyze the case using the concepts involved in stakeholder impact analysis and the philosophical approaches to ethical decision making. Explain what you think the accountant should do. You might also refer back to resources from your Critical Thinking class to refresh your memory on topics such as structuring arguments that will help your write a persuasive paper. Final Project Timeline You should budget your time wisely and work on your project throughout the course. As outlined below, some assignments in the course are designed to assist you in creating your final project. If you complete your course activities and use the feedback provided by the instructor, you will be on the right track to successfully complete your project. □ Suggested in Week One: Read The Dilemma of an Accountant Ethics Case, which is the focus of the final project, on pp. 288-290 (Ch. 4) of the textbook. □ Suggested in Week Two: Reflect on the lessons that can be learned by studying...
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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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...Team Reflection Paper Team B ACC/290 12/18/2012 Martha Muhammad Team B Reflection Paper Accrual Basis versus Cash Basis A business can choose between two different accounting methods. Accrual basis and cash basis are two different methods that businesses can use to record the financial transactions. Under accrual basis, a business records revenue, whenever the money is earned instead of waiting to actually receive cash payments. The accrual basis accounting allows businesses to match revenues to the expenses incurred in earning them, providing the company with helpful information for financial reports. Under cash basis accounting, businesses wait to receive the money before recording it as revenue. The cash basis method is simple quick and easy, but if the business makes sales or purchases on credit, the cash basis method does not reflect the results of Operations. A trial balance is a list of all the balances of ledger accounts which is constructed after the preparation of adjusting entries in a business. An adjusted trial balance includes balances of revenues and expenses along with assets, liabilities, and equities. Adjusted balances can be used directly in the preparation of the statement changes in stockholder’s equity, income statement, and the balance sheet. However, the adjusted final balance sheet does not provide specific information regarding the preparation of the statement of cash flows. Here is an example of an adjusted...
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...Financial Statement Paper Piertus Esperience ACC/290 February 4, 2014 Tim Callaghan Financial Statement Paper There are four financial statements that are prepared to represent the financial position and operations of a company. The four financial statements are income statement, statement of retained earnings, balance sheet, and statement of cash flows. The income statement reports the revenue, expenses, and results of operations for a particular company in a specified period of time. The difference between the revenues and expenses is identified as the net income or net loss. The statement of retained earnings is the income of the business that has not been paid out in dividend. Over a period of time, retained earnings will either increase or decrease. The balance sheet states the economics resources owned by an entity and the claims against those resources. The balance sheet reflects the fundamental accounting equation, assets equals’ liability plus owner’s equity. The statement of cash flows shows how cash is generated and expended in a period of time however, that is not the same as income. The statement of cash flow has three sections which are the operating activities, investing activities, and financial activities. The purpose of financial statement is to allow businesses to establish themselves to be financial stable over a period of time. Financial provides information, performance changes of enterprise; that is useful information...
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...Financial Statements Paper Thomas Hastings ACC/290 April,11,2012 Rolland Roup Financial Statements Paper In the accounting world there are four different financial statements. These financial statements provide a very wide amount of information which is very valuable information to internal and external users in many different types of companies. These four financial statements are the balance sheet, income statement, retained earnings and statement of cash flow. These four financial statements form the backbone of financial accounting. (Kimmel, Weygandt, & Kieso, 2009) Each of the four financial statements has its own use’s within accounting and each provides different and very crucial information to its proper user’s. The first financial statement is the balance sheet, the balance sheet shows a picture at a point in time of what your business owns (its assets) and what it owes (its liabilities). The second financial statement is income statements show how successfully your business performed during a period of time, it reports revenues and expenses. The third financial statement is retained Earnings are used to indicate how much of the previous income was distributed to you and the owners of your business in the form of dividends, and how much was retained in the business to allow future growth. The fourth financial statements is statement of cash flow is to show where your business obtained cash during a period of time and how that cash was used. (Kimmel,...
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...Financial Statements Paper ACC/290 – Principles of Accounting I May 14, 2010 Adael Acosta Assessment • Individual Assigment: Financial Statements Paper Write a 700- to 1,050-word paper in which you do the following: o Identify the four basic financial statements. o Describe the purpose of each of the four financial statements. o Discuss how the financial statements would be useful to internal users, such as to managers and employees. o Discuss how the financial statements would be useful to external users such as investors and creditors. Format the paper consistent with APA guidelines. Abstract Accounting is a valuable service function designed to provide accurate and timely information to internal and external stakeholders. Those stakeholders rely on four primary financial statements: the income statement, the capital statement, the balance sheet, and the statement of cash flows. Naturally, you begin by studying those four financial statements and the accounting processes that lead to their creation. Those processes include recording financial transactions in journals and then posting to the general ledger. Financial Statements should be defined as journal entries. These entries tell a story about the daily accounting practices and they project the general assets and liabilities of any company. Journal entries must be consistent and must be entered on a regular basis. Investing in reliable accounting software would be a wise decision for any business...
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...Financial Statements Paper ACC/290-Principles of Accounting I Financial Statements Paper Accounting is one of the oldest professions today. “For as long as civilization has been engaging in trade, methods of record keeping, accounting, and accounting tools have been invented. Marla Matzer Rose, author of Accounting & Auditing History writes that the earliest known writing discovered by archaeologists has, when translated, been found to be records of tax accounting.” (Bellis, 2013). Accounting is a business practice that is the systematic recording, reporting, and analysis of financial transactions of a business. This financial information can be used to determine a company's financial status and help a company make sound financial decisions. This information is reported in the form of four basic financial statements: Income Statement, Balance Sheet, Retained Earnings Statement (also known as the Statement of Stockholders Equity), and Statement of Cash Flows. To fully understand the financial health of a company one has to understand the purpose of each statement and what type of information is found in each one. The first financial statement is the income statement reports the company’s financial performance with their expenses and revenues over a specific accounting period, typically over a fiscal quarter or year. It shows if a company is making profit in a period of time. The balance statement lists the company’s assets, liabilities, and shareholder’s equity...
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...Financial Statements Paper Brittany Williams University of Phoenix Principles of Accounting I ACC/290 Kelvin Chang November 26, 2013 Financial Statements Paper In the accounting world, there are four basic financial statements that are normally prepared by profit-making organizations. These are balance sheet, income statement, statement of retained earnings, and statement of cash flows. Each of these statements serves a very important purpose in keeping track of the finances for a company. The balance sheet pretty much shows a company’s current monetary position on an exact date. As the name suggests, it is a quick reference for individuals to visually see how the company is balancing their assets, liabilities, and stockholders equity. How is this important? Well a company’s assets are what resources the company currently has at that specific time. Liabilities are the debt a company owes to other people or companies that are still outstanding. Finally, stockholders equity is what the stockholders claim against the company’s assets. The income statement is what shows the results of the company's operations for a set period of time. The income statement also summarizes a company’s revenues (sales) and expenses quarterly and annually for its fiscal year. In short this is what shows the history of the company’s gains, expenses, and losses which compiled together equals out to the company’s final net income for that time period. This final net figure, as well...
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...Comparing IFRS to GAAP Paper Ashley Connors ACC/290 Sharon Powers Comparing IFRS to GAAP Paper The comparison between the IFRS and GAAP and how they differ from one another. The accounting industry has many guidelines that need to be followed by accountants, analysts, and organizations. The internal Accounting Standards Board issued standards (IFRS) that have been adopted by the United States and several countries out of the U.S. In what ways does the format of a statement of financial or position under IFRS often differ from a balance sheet presented under GAAP? The format of a statement of finical or position under IFRS differ a balance sheet presented under GAAP in the following ways. IFRS does not require a certain order or classification of accounts on the statement of finical position. Companies are recommended to report assists in reverse order of liquidity. Making sure the users of finical statements have a clear understanding of the company’s structure is important. An example of the order of accounts on the statement of finical position is: * Long Term Assets * Current Assets * Shareholder Equality * Long Term Liability * Current Liabilities GAAP requires that all accounts are ranked on their measureable liquidly. Cash assets will be ordered first and shareholder equity will be ordered last. * Current Assets * Long Term Assets * Current Liabilities * Long Term Liabilities * Shareholder Equity What...
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...Collar Crime and Accounting Standards in the Nigerian Public Sector Nenyiaba, Ile Charles Faculty of Management Sciences Nnamdi Azikiwe University, Awka, Anambra State, Nigeria E-mail: nenyiabaic@yahoo.com ABSTRACT This survey examined the spate of white collar crime in the Nigerian public sector and the extent to which existing accounting standards are helping to stem the occurrence of the crime. Two null hypotheses were formulated and the primary data used to test the hypotheses were obtained using structured questionnaire while secondary data were obtained from annual accounts of State Governments and reports from similar studies. The study used averages, percentages, chisquare and Spearman’s ranked correlation coefficient tested at 5% level of significance for analyses of the data obtained during the study. It also made use of averages and simple percentage. The study revealed that noncompliance with accounting standards is responsible for the increasing spate of white collar crime in the Nigerian public sector and that absence of forensic accounting courses in the training programme of practicing accountants are responsible for inability of auditors to detect, early enough, white collar crime in the public sector thereby aggravating the scam. The study also revealed that flexibility of principle based on standard is a serious threat to enforcement of compliance with the standards especially in a developing economy such as Nigeria. Hence, forensic accounting courses should...
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...Reporting Paper Name Team A ACC/ 290 Date Financial Reporting Problem Verizon Communications Incorporated is a multi-billion dollar company. In 2010, the net income for Verizon Communications Inc. and its subsidiaries was over $10 billion (Verizon, 2011). Verizon Communications Inc., like many reputable businesses, makes their financial statements publically available. Although the order of the information is stated as only a suggestion, many companies choose to list their assets in the order listed in the FASAB handbook to keep consistency and to ensure they report all required information. It is the case with Verizon Communications Inc. Verizon Communications Inc. lists its assets in many categories. According to the balance sheet listed on the Verizon Communications Inc. 2010 Annual Report (Verizon, 2011), the assets for Verizon Communications Inc. are classified in the following categories: Current Assets, Plant, property and equipment, Investments in unconsolidated businesses, Wireless licenses, Goodwill, Other intangible assets (net), and Other assets. The order listed by Verizon Communication Inc. is consistent with the Federal accounting Standards Advisory Board Cash Equivalents Verizon registers its assets in the proper order under their current assets. First, on the list are its cash and cash equivalents, which is anything that can immediately turn into cash. Some examples of cash and cash equivalents are money, paper checks...
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...Financial Statements paper . ACC/290 September 22, 2011 Financial Statements paper Accounting is an action needed by companies in business. Without accounting and the knowledge of the inner workings of financial statements, a business is doomed to failure. In accounting there are four basic financial statements used for an array of reasons. The first financial statement in accounting is the balance sheet. The balance sheet is used to represent an illustration at a point of what a business owns and owes; these are also known as assets and liabilities (Kimmel, Weygandt, & Kieso, 2011). The next statement used is the income statement. The income statement displays just how successful one’s business performance is during a certain period. The income statement basically shows the revenues and expenses of any business (Kimmel, Weygandt, & Kieso, 2011). After the income statement there is the retained earnings statement. This statement indicates how much of a business’s previous income is distributed to owners by way of dividends. It also shows how much income was retained within the organization to allot for future growth (Kimmel, Weygandt, & Kieso, 2011). The last of the four basic financial statements is the statement of cash flow. The statement of cash flow is used to indicate where a business obtained their cash during a period. This statement also shows how the obtained money is used over a particular period (Kimmel, Weygandt, & Kieso, 2011). These financial...
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... Page Number at the Top to the Right Author Note This paper was prepared for Principles of Accounting I, XACC/290 Abstract In accounting there are four important financial documents that makes a business whole, but in order to use these documents you must understand accounting. Basic accounting is just keeping track of expenses as well as earnings. The four basic financial statements in the accounting system communicates and records events at point in time. Equally businesses use financial statements to measure the financial strength of their company. You have to know that is important when running a business that all of your financial information must be accurate, in order to understand the financial condition of your company. According to U.S. Small Business Administration, “Understanding financial statements is essential to the success of a small business. They can be used as a roadmap to steer you in the right direction and help you avoid costly breakdowns. Financial statements have a value that goes far beyond preparing tax returns or applying for loans.”(para 1) The Importance of Financial Statements The four basic financial statements is the balance sheet, income statement, retained earnings statement and the statement of cash flow. The financial statements summarize the accounting data and prepare the analysis of business transactions. The balance sheet includes assets, liabilities and...
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...Financial Statements Paper Phillip Carter ACC/290 November 19, 2012 Michael Olsen Financial Statements Paper There are four basic financial statements involved in the basic accounting process. These reports summaries the financial activity of a company over a specific time period. The first of fore is the balance sheet. The balance sheet reports assets and claims to assets at a particular point in time. Claims to assets are divided into two categories; claims of creditors and of owners. This relationship is where the name balance sheet comes from (Wiley Plus, 2012). Assets must balance with claims to assets. For example the balance sheet lists assets such as cash, accounts receivable, equipment and buildings as well as, land. Additionally, the balance sheet outlines liabilities such as accounts payable and notes payable. Moreover, the balance sheet brings to bear the owners’ equity. Consequently, liabilities and owners’ equity should balance with a company’s assets. The balance sheet is a report on the company’s resources. This information can be useful to internal customers in management rolls to determine how much cash is on hand. Additionally this information is useful to external stakeholders such as creditors and investors who can use the data to determine if the company will be able to repay their debt (Wiley Plus, 2012). The second financial statement we will discuss is the Income Statement. This statement lists the company’s revenues against its expenses....
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