Accounting Exam #1 Chapter 1 Organizing a business Proprietorship – proprietor – one, proprietor is personally liable Single owner, small retail stores, Partnership – Partnerss – two, partners are personally liable Not a taxpaying entity, income passes through to partners Governement by an agreement Mutual agency – each partner can act on behalf of the entity Unlimited liability Involve risk – limited liability partnerships lessen risk LLC – Members, Members are not personally
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required (10 points) and (2) provide an example of the closing of an expense account, Supplies Expense in the form of a journal entry 2. (TCO 2) As required to complete Course Project 1, one must follow the cycle that includes 10 steps to complete the accounting cycle. (1) Explain how to construct an Unadjusted Trial Balance (10 points) and (2) provide an example of the application of the debit/credit rules in the development of the trial balance (TCO 5) Internal Control Procedures are required to safeguard
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required (10 points) and (2) provide an example of the closing of an expense account, Supplies Expense in the form of a journal entry 2. (TCO 2) As required to complete Course Project 1, one must follow the cycle that includes 10 steps to complete the accounting cycle. (1) Explain how to construct an Unadjusted Trial Balance (10 points) and (2) provide an example of the application of the debit/credit rules in the development of the trial balance (TCO 5) Internal Control Procedures are required to safeguard
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IFRS and GAAP International Accounting Financial Reporting Standards AKA IFRS and Generally Accepted Accounting Principles AKA GAAP are two financial reported systems that govern and principles to the accounting world. Both systems require specific financial documents and have specific standards to follow in terms of accounting for inventory and how they define assets. What will be further discussed will be key diffrences in the two financial accounting reporting systems. IFRS 2-1: In what
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discovered that Qwest had not been following the full disclosure principle and were misrepresenting nonrecurring revenue from things such as the sale of capital equipment as “data and internet service revenues”. They also failed to disclose the impact of these nonrecurring revenues. This memo will discuss questions related to the ethics and importance of the full disclosure principle as it relates to this case. 1. The full disclosure principle states that you should include all information that would
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Introduction Accounting is a system, and its practice is a workmanship or art created to individuals screen their monetary exchanges. Accounting gives individuals a money related photo of their undertaking. Its unique - and continuing – crucial reason for existing is to give data about the financial dealings of a man or association. At first, just the individual or association required the data. The legislature required the data. As the economy turn out to be more intricate and controlled, the quantity
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for financial statement purposes for all additions to property, plant, and equipment. Given that straight-line depreciation provides a lower charge for depreciation as compared to an accelerated method in the early years of an asset’s life, the accounting appears to be less conservative. (c) The cash flow statement reports the amount of interest paid in cash ($576). A review of the income statement indicates that Johnson & Johnson incurred interest expense of $571 million (net of capitalized
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businesses expand and operate internationally, differences in standards of accounting practices between countries have made it difficult to compare financial statements. (Chakrabarty, 2011; Gill, 2007; University of Pennsylvania, 2002) This is prohibitive in getting a clear picture regarding the financial status of an organization. (Chakrabarty, 2011; Gill, 2007) In the US, Generally Accepted Accounting Principles (GAAP) “are the accounting rules used to prepare and standardize the reporting of financial statements
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recognize revenue until it is earned. GAAP guidance has separate rules for specific industries, according to an Ernst & Young summary of the differences between the two standards. A single standard -- International Accounting Standard 18 -- exists under IFRS, which contains general principles and examples. Under U.S. GA, publicly traded companies recognize revenue when product or service delivery occurs, which means that ownership risks and benefits transfer from seller to buyer. Revenue should consist
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Christopher IFRS and GAAP Comparison The two most widely known accounting standards used are the International Financial Reporting Standard or (I.F.R.S.) and the U.S. Generally Accepted Accounting Principles or (G.A.A.P.) The IFRS is used in more than 110 countries worldwide where the GAAP is generally used only in the United States. Every accountant around the globe is familiar with these accounting standards. These two accounting standards have similarities and differences that will be brought
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