...Accounting Terms Chapter 1 Accounting- Information and measurement system that identifies records and communicates relevant information about a company’s business activities Accounting equation- equality involving a company’s assets liabilities and equity, assets equal liability plus equity/ aka balance sheet equation Assets- resources a business owns or controls that are expected to provide current and future benefits to the business Auditors- An individual who checks the accuracy, fairness, and general acceptability of accounting records, an external auditor would attest to those checks Balance sheet- Financial statement that lists types and dollar amounts of assets, liabilities, and equity at a specific date Bookkeeping- part of accounting that involves recording transactions and events. Either manually or electronically(record keeping) Business entity assumption- Principle that requires a business to be accounted for separately from its owners and from any other entity Common stock- Corporations basic ownership share aka capital stock Conceptual framework- system of interrelated objectives and fundamentals, disseminated by accounting regulators such as the FASB or IASB intended to guide consistent standard setting ad aid accounting practitioners Contributed capital- Total amount of cash and other assets received from stockholders in exchange for stock aka paid in capital Corporation- Business that is a separate legal entity under state or federal laws with owners...
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...1)會計(Accounting) 會計是一套記錄個人、企業或組織的財務活動的資訊系統，包括收集分類、綜合、分析和解 釋成本資料，並提供財務預算、核數、年結、帳目及成本等分析報告，可協助個人、企業或 組織確認、記錄及了解其經濟狀況。 Accounting is an information system that identifies, records, and communicates the economic events of an organization to interested users. a. The first part of the process, identifying, involves identifying those events that are considered evidence of economic activity relevant to a particular business organization. b. Recording is the keeping of a chronological diary of events, measured in dollars and cents. c. Communication occurs through the preparation and distribution of accounting reports. 2)資產(Assets) 即企業所擁有的資源，包括各種財產、債權和其他權利，由企業所控制，並能為企業帶來經 濟利益，通常分為流動資產和長期資產。 Assets are resources a business owns. The business uses its assets in carrying out such activities as production and sales. It usually contains current assets and long-term assets. 3)資產負債表(Balance sheet, Statement of Financial Position) 為會計上重要的財務報表，能夠顯示某一特定日期之資產、負債和業主權益，能夠幫助了解 企業的經營狀況。 A statement of financial position reports the assets, liabilities, and equity of a company at a specific date to help investors realize the management of the enterprise. 4)基本會計恆等式(Basic accounting equation) 又稱會計平衡公式，即資產=負債+業主權益。 The basic accounting equation is: Assets = Liabilities + Equity. 5)簿記(Bookkeeping) 會計帳務處理技術的一種，指會計人員利用記錄和核算原理，登記帳簿以記錄經濟體的資 產、負債及資本的增減，通常只包括經濟事項的紀錄。 Bookkeeping usually involves the recording of economic events and is therefore just one part of the accounting process...
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...1. Question: (TCO A) Wages paid to a timekeeper in a factory are a: Prime Cost YES.....Conversion Cost NO Prime Cost YES.....Conversion Cost YES Prime Cost NO....Conversion Cost NO Prime Cost NO.....Conversion Cost YES CORRECT 2. Question: (TCO A) A cost incurred in the past that is not relevant to any current decision is classified as a(n): period cost. opportunity cost. sunk cost. CORRECT differential cost. 3. Question: (TCO A) Inventoriable costs are also known as: variable costs conversion costs product costs CORRECT fixed costs 4. Question: (TCO A) When the activity level is expected to decline within the relevant range, what effects would be anticipated with respect to each of the following? Fixed Cost Per Unit Variable Cost Per Unit Increase No Change CORRECT Increase Increase No Change No Change No Change Increase 5. Question: (TCO F) Emco Company uses direct labor cost as a basis for computing its predetermined overhead rate. In computing the predetermined overhead rate for last year, the company misclassified a portion of direct labor...
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...1. Question : (TCO A) Managerial accounting provides all of the following EXCEPT _____. Student Answer: future-oriented information a balance sheet prepared in accordance with GAAP internal reports that don't follow GAAP financial and nonfinancial reports on departments Instructor Explanation: Chapter 1, page 4 Points Received: 6 of 6 Comments: 2. Question : (TCO A) Borders Books is an example of a Student Answer: manufacturing-sector company. merchandising-sector company. service-sector company. client-focused company. Instructor Explanation: Chapter 1, page 36 Points Received: 6 of 6 Comments: 3. Question : (TCO A) Which of the following issues is NOT addressed by the Sarbanes-Oxley legislation? Student Answer: Improving internal control Corporate governance Monitoring of managers Disclosure practices of private companies Instructor Explanation: Chapter 1, page 14 Points Received: 0 of 6 Comments: 4. Question : (TCO A) Within the relevant range for a car manufacturer, if there is a change in the level of cars produced, then Student Answer: fixed and variable costs per unit will change. fixed and variable costs per unit will remain the same. fixed costs per unit will remain the same and variable costs per unit will change. fixed costs per unit will change and variable...
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...Accounting terms from the word ‘S’ 1. safety stock An additional quantity of items held in inventory in order to minimize the chance of an item being out of stock. Salary The compensation usually associated with executives, managers, professionals, office employees, etc. whose pay is stated on an annual or on a monthly basis. (On the other hand, "wages" is usually associated with employees whose pay is stated on an hourly basis.) Sales A revenue account that reports the sales of merchandise. Sales are reported in the accounting period in which title to the merchandise was transferred from the seller to the buyer. Secured creditor A lender such as a bank who has placed a lien on a borrower's assets. As a result, the lender has collateral until the loan amount is repaid. Subsidiary ledger A record of the details to support a general ledger account. The general ledger account is often referred to as the control account. For example, the accounts receivable subsidiary ledger provides the details to support the balance in the general ledger control account Accounts Receivable. Simple regression Regression analysis with only one independent variable. Social Security taxes One component of the payroll tax referred to as FICA. (The other component of the FICA tax is the Medicare tax.) The Social Security tax is levied by the U.S. government on both the employee and the employer. In 2012 the Social Security portion of FICA (excluding Medicare) to be withheld...
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...Percentage of Completion Method - Calculations % Complete = Costs incurred to date Most recent estimate of costs | Revenue (or GP) to be recognized to date = % complete x Est. Total Revenue (GP) | Revenue (or GP) to be recognized to date Revenue (or GP) recognized in prior periods= Revenue-period revenue (or GP) | Journal Entries for Percentage of Completion To record cost of construction: Construction in Process XXX Materials/Payables/Cash XXX To record progress billings: Accounts Receivable XXX Billings on Construction XXX To record collections: Cash XXX Accounts Receivable XXX To Record Revenue, GP, Completion, and expense: To Recognize Revenue and GP (dr.) Construction in Process (GP) XXXX Construction Expenses XXXX (cr.) Revenue – LT Contracts XXXXX Record Completion of Contract: (dr.) Billings on Construction in Progress (FULL BILLING AMT) (cr) Construction in Process (FULL CIP AMOUNT) Balance Sheet Reporting: CIP & Rec. Profit > Billings = Current Asset Billings > CIP & Rec. Profit = Current Liability ------------------------------------------------- Completed Contract Method Billings on Construction in Process XXXXXX Revenue – LT Contracts XXXXX Costs of Construction XXXXXX Construction in Process XXXXXX ------------------------------------------------- ...
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...FORMTEXT Your Name: Austin Michael Dix ACCT 203 Financial & Managerial Accounting Midterm Exam Instructions: Type your complete name on every page at the top. This is an open book exam which means you may use your book and all your course materials. You are on your honor to complete this exam on your own. You must not discuss this exam with anyone. All work submitted is your own. Complete all 10 problems. You must show all your work, including all calculations. Point values and the chapter number are indicated with each problem. Type your answers immediately under each question. Your exam must include both the given questions and your complete answers. The exam is worth 20% of your course grade. Your completed exam is due to the Assignment Drop Box by Sunday, July 12, at 10:00 p.m. 1. Problem #1 The equation to answer this questions is assets= liabilities+ owner's equity. Before the sale of the parcel of land is made, $60,000(what the seller still owed the bank on the land)+ $110,000(the amount of money the seller has invested into purchasing the land)= $170,000 (which is what the land was originally purchased for). (10 points) 2.Problem #2 (5 points) 3.1. D (going concern principle) 4.2. A (Business entity principle) 5.3. B (Objectivity principle) 6.4. C (Cost Principle) 7.5. E (Monetary unit principle) 3. 3. Problem #3(5 points) 4. 1. C (financing activity) 5. 2. A (operating activity) 6. ...
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...Accounting Terms and Concepts Student Name BSA/301 Instructor Name 11/30/2013 When first starting a business it can be challenging to keep all records of financial transactions that are performed. It is important to do so because not doing so can leave you in a place of uncertainty and can lead you to make some financial decisions that can hurt you. If the records that have been kept weren't accurate or complete it would be hard to determine how much money is actually available for spending. As your business continues to grow it becomes increasingly more important to keep close and accurate track of your finances. Not just money spent but all aspects of your financial information. This includes but is not limited to: spending, revenue, liabilities, property, loans, personal investments, and asset degradation. All of these assets must be considered to have a proper understanding of the state of the business. This is not just important to your perception but to those that may own your business such as stockholders. Should the situation arise that somebody wants to buy your business and you are interested in selling, they may not be able to see the true success of your business without the proper tracking and status of your financial information and that would greatly affect the chances of the business being sold. The good news for you is that modern accounting systems make it incredibly easy to keep track of all of this information. Many programs are able to compute...
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...Managerial Accounting Term Paper December 3rd, 2013 Activity-Based Costing and its Impact on Corporate Industries Activity based costing, also know as “ABC” is the application of gathering data and evaluating all of a companies operational and internal finical overhead information so that top managers can make more accurate and strategic informed decisions to better companies. In the early 1980's traditional costing; which a basic form of costing, was choice of preference with many companies, but traditional costing had its major flaws. Traditional techniques would only provide efficiencies to companies with specific and smaller product selections (Coulter). So in the search of a new systems activity based costing was created, it covered everything from operations, marketing, and all the way to research and development on the internal side of a company. Activity-based costing is extremely important to managers in the sense that it only deals with the internal decision making; which is where most managers focus their views, and that is used along side the traditional accounting. Later on I will present a trade publication that deals with a steel manufacturing company and its journey of activity-based costing throughout they past couple decades. Before then you must have a strong grasp on the concepts of activity-based costing and how they work. First I will discuss how Activity-Based Costing works in an manufacturing side of a company. Each and every product along with...
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...In finance, the efficient-market hypothesis (EMH), or the joint hypothesis problem, asserts that financial markets are "informationally efficient". In consequence of this, one cannot consistently achieve returns in excess of average market returns on a risk-adjusted basis, given the information available at the time the investment is made. There are three major versions of the hypothesis: "weak", "semi-strong", and "strong". The weak form of the EMH claims that prices on traded assets (e.g., stocks, bonds, or property) already reflect all past publicly available information. The semi-strong form of the EMH claims both that prices reflect all publicly available information and that prices instantly change to reflect new public information. The strong form of the EMH additionally claims that prices instantly reflect even hidden or "insider" information. Critics have blamed the belief in rational markets for much of the late-2000s financial crisis.[1][2][3] In response, proponents of the hypothesis have stated that market efficiency does not mean having no uncertainty about the future, that market efficiency is a simplification of the world which may not always hold true, and that the market is practically efficient for investment purposes for most individuals.[4] In political science and economics, the principal–agent problem or agency dilemma concerns the difficulties in motivating one party (the "agent"), to act in the best interests of another (the "principal") rather than...
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...Controlling System Within Unilever Commerce Essay Unilever has an immovable control experience, which is agreed and frequently reviewed by the Boards. This incorporates risk management, internal control procedures and operations control which are planned to provide rational, but not complete, security that assets are refreshed, the risks facing the business are being addressed and all information required to be released is reported to the Group's senior management, including where appropriate the Group Chief Executive and Chief Financial Officer, within the required timeframe. INTERNAL CONTROL AND PROCEDURES: Unilever control framework is supported through a code of Business Principles which set values of efficiency. It needs that senior manager's in each department controls the value of internal control because they are a key to huge risk factors. The Boards have individually all the responsibility for establishing procedure to check the effectiveness of internal control and reviewing and revaluating them their effectiveness. There is a day- to- day review of effectiveness of internal control system and Unilever monitor its risks with ongoing basis. OPERATIONS CONTROLS: Operations Controls is the control in which you make sure that operations activities are carried out as they were planned. Operations Controls include following controls: Financial Control Budget Control Inventory Control Maintenance Control Cost Control FINANCIAL CONTROL: Managers at Unilever put...
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...http://www.universalresearchjournals.org/ujmbr Copyright © 2013 Transnational Research Journals Full Length Research Paper Accounting and reporting practices of NGOs- A case study Sanjib Kumar Pakira 1 and Amalendu Bhunia 2 1 Assistant Professor, Department of Commerce , Maharaja Manindra Chandra College 2 Associate Professor, Department of Commerce , Kalyani University Accepted 26 June , 2013 The present study explores the accounting and reporting practices of NGOs in West Bengal, one of the important states of India in the eye of socio-economically deprived background for the period from 2000-01 and ending on 2009-10. NGOs in West Bengal played a major role in bringing a change in the lives of average poor rural society. Though, the vicinity wherever NGOs are not satisfactorily plasticized in terms of adoption of standard accounting practices, transparency and communication of their financial and social performance in the course of appropriate standardized reporting practices. Their failure on this front has bred a feeling of suspicion amongst the general public regarding utilization of funds and grants by NGOs. The results illustrate that meager number of the selected NGOs in West Bengal follow written in terms of automated, manual etc. accounting and reporting practices stringently. Keywords: NGOs, India, West Bengal, Accounting, Reporting, GAAP, Funds and Grants BACKGROUND AND ISSUES A Non-Government Organization is an organization that is not part...
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...Copyright © 2010 Dell Inc. How we win Our Code of Conduct “Winning with integrity means we operate legally and ethically, everywhere we are and in everything we do.” –Michael Dell A message from Michael Winning with integrity is one of Dell’s most important values. We all work hard every day to deliver technology solutions that enable people everywhere to grow and thrive. That’s our purpose, and it’s important. It’s equally important that the actions we take as we deliver on that purpose are transparent and honorable. We are very clear about what it means to win with integrity. It means we contribute our time, technology and know-how to improve the communities where we work and live. It means we are committed to helping our customers succeed—and growing our business—in ways that benefit the environment and society. We demand high performance and high standards. It also means we operate legally and ethically, everywhere we are and in everything we do. I expect us all to operate according to applicable laws and regulations, and in accordance with the letter and spirit of those laws. Our Code of Conduct, “How We Win,” provides guidance on how to follow laws and Dell policies, and also includes our general ethical principles. Our Code is global, so it applies to Dell team members in all roles, at all levels and in all locations. We also expect our agents and other third parties acting on our behalf to adhere to equally high standards. In addition, Dell leaders have a...
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...Accounting 202 TTH 11:00-12:30 Paying People to lie Michael’s C. Jensen’s paper explains that the use of budgets or targets to measure an organization’s performance and compensation leads to counterproductive effects within organizations. Jensen believes that the solution to this problem is not to completely eliminate the budgeting systems, but instead to change the way performance is measured, the way rewards are given, and the way punishment is applied. In budgeting systems, managers are generally rewarded for reaching their targeted levels, and if they do not reach their targets, they are punished. Allowing managers to set their own targets allows them to somehow manipulate (gaming) the target levels by setting levels that can be easily achieved. This is true, especially if a bonus is at stake, managers will do just about everything to reach the goal and collect the bonus. This strategy clearly creates a problem for organizations because every department will follow the same strategy and set goals that are easily attainable, allowing the achievement of the goals and therefore, the collection of the bonuses. Those actions have negative effects on an organization because departments are not coordinating for the best of the organization and department productivity is not being maximized. For example, a sales manager might know that with hard work and motivation his or her sales department is capable of reaching sales of $10 million, but to prevent the risk of punishment...
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...“Accounting – the process of identifying, measuring, and communicating economic information to permit informed judgements and decisions by users of the information.” (Warren, Reeve, & Fess, 1999, p. 5). Accounting, as so many other occupations has a rich history behind it, as well as it’s own language. Throughout this rich history it is clear to see that certain organizations relating to the accounting profession have made significant strives to improve the reliability and accuracy of what is reported. These organizations ensure that there is a framework for standards which accountants use in today’s world to speak this common language of business. The organizations, which have provided this framework, are the American Institute of Certified Public Accountants, Securities and Exchange Commission, Federal Accounting Standards Board, Government Accounting Standards Board, and International Accounting Standards Committee. Each organization plays a major role in defining rules and guidelines to ensure uniformity throughout the profession. One such organization is the American Institute of Certified Public Accountants (AICPA). The history of this organization dates back to 1887, when the American Association of Public Accountants was formed. In 1916, the American Association was succeeded by the Institute of Public Accountants. In 1957, the name was finally changed to what we now know it as today, the American Institute of Certified Public Accountants. “The American...
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