Accounting Assumptions, Principles & Constraints Greg Young XACC/280 03/10/2013 Salena Ford Accounting assumptions provide a foundation for the accounting process. There are three major assumptions; the monetary unit, economic entity, and time period assumptions. The fourth assumption is the going concern assumption. The Monetary Unit Assumption makes it mandatory that only transaction data that can be expressed in terms of money be included in the accounting records. The reason for this
Words: 514 - Pages: 3
Generally Accepted Accounting Principles Deborah Gandy HCS571 June 3, 2013 Tamica Lewis Generally Accepted Accounting Principles To meet health care changes resulting from decreased reimbursement an aging population, and technology the nursing professions responsibilities morphed from the bedside to the board room. In the last two decades a substantial increase in nurses in
Words: 1538 - Pages: 7
controlling and organizing by gathering information and helping to make a decision. Financial management is important in healthcare financial plans. Companies can not function without the proper financial planning. Generally Accepted Accounting Principles (GAAP) gives guidelines for organizations to follow in regards to their financial report. Misconduct, fraudulent behavior and abuse happen every day in
Words: 815 - Pages: 4
CHAPTER 2 CONCEPTUAL FRAMEWORK UNDERLYING FINANCIAL ACCOUNTING Show Me the Earnings! The growth of new-economy business on the Internet has led to the development of new measures of performance. When Priceline.com splashed onto the dot-com scene, it touted steady growth in a measure called “unique offers by users” to explain its heady stock price. To draw investors to its stock, Drugstore.com focused on the number of “unique customers” at its website. After all, new businesses call for new performance
Words: 23554 - Pages: 95
Accounting Changes and Error Corrections Chapter 20 Review Notes The accounting profession has identified two main categories of accounting changes: 1. Change in accounting estimate: these are considered to be part of the normal accounting process, not corrections or changes of past periods. Examples of changes in accounting estimates include bad debt expense, depreciation, residual values, and warranty obligations. A change in depreciation method is considered a change in
Words: 729 - Pages: 3
2005). The June 12, 2012 Code of Professional Conduct list the Principles as; Responsibilities, Public Interest, Integrity, Objectivity and Independence, Due Care, and Scope and Nature of Services (AICPA, 2013). The principle of responsibilities requires the CPA to perform their responsibilities as professionals, by exercising sensitive professional and moral judgments on activities (AICPA, 2013). The principle of public interest requires the CPA to approach duties in a way that
Words: 1166 - Pages: 5
Generally Accepted Accounting Principles HCS/571 Generally Accepted Accounting Principles Health care organizations are required to have financial records audited or examined at least once a year by a certified public accountant (CPA). During the audit, the CPA is looking for substantial errors, evaluating the hospital’s accounting system, and making certain that financial statements are being prepared in accordance with generally accepted accounting principles (GAAP). GAAP is a set
Words: 2504 - Pages: 11
assigned to research the appropriate accounting for revenue treatment of construction contracts for a client, LabCo. In specific, I was assigned to oversee LabCos’ contract involving a six-axis laser-cutting machine with Halibut Co. After researching and developing a theory based on the Financial Accounting Standards Boards’ Codification, I have concluded that LabCos’ treatment of revenue was reasonable; however, they should have changed revenue recognition principles sooner. In this situation, there
Words: 1442 - Pages: 6
Methodology used to determine deferred taxes. Generally Accepted Accounting Standards is used for preparing financial reports for creditors and investors. However to file income tax returns corporations must use the guidelines established by the Internal Revenue Service. The differences between GAAP and tax reporting regulations could cause tax expenses reported on the financial statements to be different from the amount of taxes payable to the IRS. Understanding the differences, first understand
Words: 506 - Pages: 3
BAC 3684: ACCOUNTING THEORY LECTURER’S NAME: PROF PREM LAL JOSHI GROUP MEMBER’S STUDENT | STUDENT ID | DARREN TEH WE LOON | 1102702654 | CHEE YEN MUN | 1102700429 | CHANDRAPRIYA D/O GOPALACHANDRAN | 1101110492 | GAYATHIRY ULAKANATHAN | 1101110649 | a) In your opinion, why do standard setters require measurement methods other than traditional historical cost accounting? Accounting should be the most straightforward of topics
Words: 2084 - Pages: 9
