Volkswagen: Annual Report Breakdown Abstract Financial accounting can be a stressful job to most small business if they do not know what they are looking at. However, large corporations such as Volkswagen have this animal figured out and laid out for everyone to see. In this assignment we will be looking at several aspects of what makes up annual report. First, we will indentify and explain the main sections that comprise the meat and potatoes of an annual report. We will also discuss
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viewed by users of financial statements as an asset that may be readily converted to cash if needed. In line with the historical cost principle, the valuation of inventory is solely based on the amount the inventory was purchased for. However, if the value of the inventory decreases below the original cost, then when valuing inventory the historical cost principle must not be used in this case. The reason for such a decrease in value could be for many reasons such as price level changes in the market
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events from non-owner sources is known as comprehensive income. 20. The basic accounting equation may be expressed as assets = liabilities – owners’ equity. 21. 22. count. 23. uity. Debit means increase. A contra account is an account that is subtracted from a related acRevenues increase owners’ equity and expenses decrease owners’ eq- Income Determination True-False 1. To measure earnings under accrual accounting, revenues are recognized when they are received. 2. Revenues are earned when the
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Assignment 1 Generally Accepted Auditing Standards Generally Accepted Auditing Standards | Action by Jones Resulting in Failure to Comply with Generally Accepted Auditing Standards | The auditor must have adequate technical training and proficiency to perform the audit. | Jones, CPA hired to students that did not have any experience. | The auditor must maintain independence in mental attitude in all matters relating to the audit. | Arthur Jones, CPA, accepted
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The Role of Accounting on Business and Our Society Adrian Smith Accounting 100 Prof. Eric Osei A Financial statement is a record of financial activities of a business entity. Main objective of financial statements is to provide information about financial position, performance and changes in financial position, and flows of cash in the business organization which in turn is essential in making decisions. In order for financial statements to provide the necessary information, they have to abide
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Part I. A. Generally Accepted Accounting Principles. GAAP is not a fixed set of rules. It is a guideline or more precisely a group of objectives and concepts that have evolved over 500 years from the basic concepts of Luca Pacioli set forth in the 1400s. It governs how financial statements are prepared and presented in the United States. The Financial Accounting Standards Boards (FASB), the American Institute of Certified Public Accountants and the Securities and Exchange Commission (SEC) provide
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transactions are held to different guiding principles and regulations for financial (book) accounting and tax accounting. Financial accounting is guided by the Generally Accepted Accounting Principles and uses accrual basis accounting for reconciling book income. For Tax accounting the IRS laws and regulations guide accountants to use a modified accrual or cash basis for reconciling taxable income. Discrepancies occur when using two different guiding principles, thus the need for two separate books.
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financial planning. Generally Accepted Accounting Principles (GAAP), provide guidelines that help organization’s record business transactions. These principles provide creditability and show other companies that the organization uses GAAP, which gives a precise accounting of the businesses finances. Using GAAP further allows stockholders to know that the financial reports about a business coincide with accounting principles. These accounting principles are accrual, revenue, relevance, reliability
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The world possesses two main accounting systems: United States Generally Accepted Accounting Principles (U.S. GAAP) and International Generally Accepted Accounting Principles (iGAAP). As the acronym simply states, US GAAP are the guiding principles for the United States and iGAAP are principles used by other countries internationally. Across both systems are similarities in language, procedures and reporting but some of the differences are so major that it keeps a consistent debate on which system
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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
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