ISSUES IN ACCOUNTING EDUCATION Vol. 26, No. 1 2011 pp. 155–162 American Accounting Association DOI: 10.2308/iace.2011.26.1.155 Bioscience Company: Accounting for Idle Plant Assets Victoria Dickinson, Paul Kimmel, and Terry Warfield ABSTRACT: Bioscience Company and its auditors have been in discussions with the SEC concerning the accounting for its long-lived assets. Among the issues being discussed is the company’s discontinuation of depreciation on productive assets that it had used previously
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Media Summary Paper Irene Chumo ACC/300- Principles of Accounting January 26, 2015 September Foster Media Summary Paper The media that i used was the video on financial statements, “financial statements are records that outline the financial activities of a business, an individual or any other entity. Financial statements are meant to present the financial information of the entity in question as clearly and concisely as possible for both the entity and for readers. Financial statements for
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Question 1 CCS manufactures pencils. All direct materials are added at the beginning of the production process. During January, the accounting department noted that there was no beginning inventory. Direct materials purchases totaled $30863 during the month. Work in process records revealed that 1047 units were started in January, 464 units were completed, and 36 units were spoiled as expected. Ending work in process units are complete with respect to direct materials costs. Spoilage is not detected
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Accounting Assumptions, Principles, and Constraints XACC 280 It can be said that when dealing with all aspects of accounting one would have their own assumptions of what exactly accounting can be interpreted to be. Along with assumptions, there are certain principles and constraints that are established in the accounting field. A clear explanation of principles, assumptions, and constraints can be done. The assumptions in accounting are first the monetary unit assumption which is the requirement
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Credits If the words "debits" and "credits" sound like a foreign language to you, you are more perceptive than you realize—"debits" and "credits" are words that have been traced back five hundred years to a document describing today's double-entry accounting system. Under the double-entry system every business transaction is recorded in at least two accounts. One account will receive a "debit" entry, meaning the amount will be entered on the left side of that account. Another account will receive a
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THEORY OF ACCOUNTS ACCOUNTING CONCEPTS 1. Which of the following statements is/are true? I. Accounting is a service activity intended to fulfill a useful function in society II. Accounting involves the art of recording, classifying and summarizing transaction and events, and interpreting the results thereof. III. Accounting is an art but not a science IV. Accounting provides quantitative financial information intended to be useful in making economic decisions a. I, II, III, IV
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globalization, it is necessary for Islamic bank to adopt a single set of international accounting standard particularly for Islamic banks alone worldwide. In addition to this, it is sadly to say the fact that AAOIFI has no power to enforce its standards due to IFRS and IAS has been globally accepted worldwide by most of the countries. It is argued that Islamic banks should have their own accounting standards as not all accounting treatment could be referred to IFRS as for example Islamic banks do not include
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communicate economic activities – GAAPs are the common set of standards implemented by the Canadian Institute of Chartered Accountants which guide the methods of accounting – GAAPs are now becoming the IFRS – Cost Principle: assets should be recorded at their original historic cost – Assumptions: create a foundation for the accounting process – Going Concern Assumption: assumes the company will continue to operate in the near future – Monetary Unit Assumption: only transactions that
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use up within one year or its operating cycle, whichever is longer. A balance sheet account that represents the value of all assets that are reasonably expected to be converted into cash within one year in the normal course of business. In accounting, a current asset is an asset on the balance sheet which can either be converted to cash or used to pay current liabilities within 12 months. Typical current assets include cash, cash equivalents, short-term investments, accounts receivable, inventory
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Objectives..................................................................................................... 2 Basic Accounting Concepts ....................................................................................... 3 Cash versus Accrual Accounting................................................................................7 Qualitative Characteristics of Accounting Information ...........................................9 Valuations on the Balance Sheet .............................
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