INTRODUCTION Accounting has rightly been termed as the language of the business. The basic function of a language is to serve as a means of communication. Accounting also serves this function. It communicates the results of business operations to various parties who have some stake in the business viz., the proprietor, creditors, investors, Government and other agencies. Though, accounting is generally associated with business but it is not only business which makes use of accounting. Persons like
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Case: Accrual Accounting versus Fair Value Real Property Holding, Inc. is trying to determine whether keeping their financial records on an accrual accounting basis is the right thing to do. They are currently in negotiations for selling a large portion of the Company to an outside investor. They have heard that accrual accounting doesn’t necessarily track economic values and so they are concerned that it doesn’t accurately portray the financial position of their company. On the other hand the
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Week Two Reflection Summary ACC 290 October 8, 2010 Week Two Reflection Summary Section 1: No matter the size of a business, the uses of financial statements are in need. The four basic financial statements include income statement, retained earnings statement, balance sheet, and statement of cash flows (Kimmel, Weygandt, & Kieso, 2009). They
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clients, especially when they are dealing with material information. Also clients have access to professional publications that discuss the general guidelines which include materiality limits. 3. Revenue should be recognized based on accrual accounting in accordance with GAAP. Revenue should be recognized when earned, and expenses should be recognized when incurred. Revenue is considered earned when the University has substantially met its obligation to be entitled to the benefits represented
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ukessays.com http://www.ukessays.com/essays/accounting/accounting-goodwill.php Free Essays - Accounting Essays Accounting for Goodwill Under IFRS 3 In this essay I will be discussing the underlying problems with accounting for goodwill as a result of business combinations, which will include the comparison between the requirements of FRS 10 and IFRS 3 and also how this International standard affects the preparers and shareholders. IFRS 3 defines goodwill as: “future economic benefits arising
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The following questions are in regards to an entrepreneur, named Arynetta Floyzelle from San Diego who wanted to inspire young women by writing stories that both entertain and promote diversity. Girl Team Mobile features her multicultural stories feature a variety of female characters all facing an emotional challenge. These stories always end in a manner that empowers young girls to pursue their endeavors and take pride in their differences. From perusing the webpage I can also add these writings
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DEPRICIATION All non-current assets will have a finite life because its life expires and cant be consumed for the entire time Finite life: the limited period of time a non current asset will exist Depreciable assets: a NCA that has a finite life, and thus must be depreciated over that life. Depreciation: allocation of cost of a non current asset over it useful period of life. When some has been consumed it is known as depreciation expense Depreciation expense: the part of the cost of a non
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D. Going concern assumption. 2. Accounting standard setting has been characterized as: A. A political process. B. Using the scientific method. C. Pure deductive reasoning. D. Pure inductive reasoning. 3. The FASB's conceptual framework's qualitative characteristics of accounting information include: A. Historical cost. B. Realization. C. Faithful representation. D. Full disclosure. 4. Fundamental qualitative characteristics of accounting information are: A. Relevance and comparability
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states, “The total of other comprehensive income for a period shall be transferred to a component of equity that is presented separately from retained earnings and additional paid-in capital in a statement of financial position at the end of an accounting period.” 2) d) Cisco reports its Accumulated other comprehensive income as 1,294 on its balance sheet (80). e) Net change in net unrealized gains on investments is referring to the gains or losses that the company obtained on available-for-sale
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