Case Analysis 10-3 Kansas City Zephyrs Baseball Club, Inc. I.Issues Why does net income not equal cash flows? Why do we need accrual accounting? (Why do not we fire all accountants and just publish summary bank statements) Why do the differences between owners’, players’, GAAP and truth number exist?(Can accounting numbers be neutral representations of what happened? What happens if a retired non-roster player (e.g. Joe Portocararo) returns to the active roster while continuing to earn the same
Words: 1731 - Pages: 7
in the books of the business as the business has an identity of its own separate from that of the owner. An entity in perpetuity, therefore it is presumed that the entity is not being liquidated, which by implied assumption would mean that accounting should therefore attempt to measure at all times what the entity is worth to a buyer. True/False False: According to the going concern concept the presumption of the entity being in perpetuity and not being liquidated is correct. Though the
Words: 1368 - Pages: 6
documents, or business transactions; * Material intentional omissions or misrepresentations of events, transactions, accounts, or other significant information from which financial statements are prepared; * Deliberate misapplication of accounting principles, policies, and procedures used to measure, recognize, report, and disclose economic events and business transactions; * Intentional omissions of
Words: 878 - Pages: 4
not affect the operations or outcome of a company. 6) Which of the following accounting principles would require that all goods and services purchased be recorded at cost? Cost Principle 7) The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange is the: Cost Principle 8) A partnership: has unlimited liability for its partners 9) The group
Words: 554 - Pages: 3
Chapter 1 Introducing Financial Accounting QUESTIONS 1. The purpose of accounting is to provide decision makers with relevant and reliable information to help them make better decisions. Examples include information for people making investments, loans, and business plans. 2. Technology reduces the time, effort, and cost of recordkeeping. There is still a demand for people who can design accounting systems, supervise their operation, analyze complex transactions, and interpret reports
Words: 6481 - Pages: 26
in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well
Words: 392 - Pages: 2
human resource representative is responsible for hiring, and training employees. The accountant’s role is to ensure that the company has sufficient amount of working capital. He prepares the profit and loss statement and monthly closing and cost accounting reports. Inventory control would be a part of the general manager and the accountant’s responsibility. Our company is still growing and once it stabilizes, then we can create more departments and hire more employees. Our marketing agent’s job is
Words: 1509 - Pages: 7
to AU section 420.24, “When the independent auditor has not audited the financial statements of a company for the preceding year, he should adopt procedures that are practicable and reasonable in the circumstances to assure himself that the accounting principles employed are consistent between the current and the preceding.” In order for Lifeson and Lee to gain confidence of consistency and accuracy they would have to expand their audit to financial records of the prior year according to the AICPA
Words: 2202 - Pages: 9
of the accounting techniques that helps managers make financial statements look better than they actually are. In the Earnings Wizardry, author talks about Earnings Management and the pressure that issuers and non-issuers face when they have to meet investors’ expectations. According to this article, one out of five U.S. CFO’s manipulate their company earnings legally by managing earnings to misrepresent economic performance of the company. Vincent Ryan in The Search for Suspect Accounting, gets a
Words: 916 - Pages: 4
TERMS TO LEARN Accounting The Information system that measures business activities, processes the information into reports, and communicates the results to decision makers. Accounting Equation Assets=Liabilities+Equity Accounts Payable A short term liability that will be paid in the future Accounts Receivable The right to receive cash in the future from customers for good sold or for services performed Assets Economic resources that are expected to benefit the business in the
Words: 1443 - Pages: 6
